One-glance verdict
Within fair range
$157.62 our estimate vs market $169.97
Wall Street consensus: $262.50 (66.5% higher than our fair-value estimate)
8% above our estimate
Fundamentals snapshot
Sanmina Corporation
SANM · NMS · Technology · Electronic Components
Current price
$169.97
52-week range
$118.10 - $288.68
Market cap
$9.11B
Balance sheet
Healthy
19.60x Strong cushion
Net debt $579.62M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 57.0% last year.
- Reward Returns 12.5% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 86.7% above its 5-year average P/E.
What this company does
Sanmina Corporation
Sanmina makes complicated electronic parts and puts them together for other companies, like those in the medical or defense industries. The money they make comes from these manufacturing services, and it matters because they help build the technology we rely on every day, managing a big supply chain (the network of companies that help make and deliver a product).
How the company got here
Sanmina was founded in 1980 by Jure Sola and Milan Mandarić in Silicon Valley, initially as a manufacturer of printed circuit boards. The company grew significantly during the rise of electronics outsourcing in the 1990s. A major turning point was the 2001 merger with SCI Systems, which created Sanmina-SCI and substantially increased the company's size and market reach. In 2012, the company officially changed its name back to Sanmina Corporation. Throughout its history, Sanmina has expanded its services beyond basic assembly to include more complex manufacturing, design, engineering, and after-market support. This evolution has allowed it to serve a wider range of high-tech industries.
What it actually does
Sanmina acts as a behind-the-scenes partner for many well-known technology companies. Essentially, it helps other businesses design, build, test, and repair complex electronic and mechanical products. Think of it like a specialized factory and engineering service that other companies hire to make their products for them. This allows those companies to focus on their own innovations and marketing, while Sanmina handles the intricate manufacturing processes. Sanmina's services span from the initial design and engineering stages all the way through to final assembly, testing, and even post-sale repair and logistics.
Integrated Manufacturing Solutions (IMS)
This is Sanmina's largest business segment, making up about 80% of its total revenue. It's where the company takes components and assembles them into finished products, performing high-level assembly and testing. This segment also includes direct order fulfillment, meaning Sanmina ships the finished products directly to the end customer on behalf of its clients. Essentially, this is the core manufacturing engine of the company, turning raw components into complex, ready-to-ship electronic systems for various industries.
Components, Products and Services (CPS)
This segment is where Sanmina produces and supplies the individual building blocks that go into the larger electronic systems. This includes things like printed circuit boards (PCBs), which are the green boards that hold electronic components, as well as backplanes, cable assemblies, and precision-machined metal parts and plastic components. It also encompasses specialized areas like optical, radio frequency (RF), and microelectronic solutions. This part of the business provides the essential parts that are then used in the Integrated Manufacturing Solutions segment or sold to other manufacturers.
What management is betting on now
Sanmina's current strategy focuses on shifting its business towards more complex, high-reliability products and end markets. This means prioritizing areas like medical devices, defense and aerospace, and specialized industrial and cloud infrastructure programs. The company believes these sectors offer better profit margins and more stable customer relationships because they require deep engineering expertise and strict quality compliance, rather than just competing on price. Sanmina is also looking to become a key partner for companies building hardware for artificial intelligence (AI) and is focusing on strengthening regional supply chains to reduce risk for its customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$27.25M
FY2025 Q1
$46.85M
FY2025 Q2
$126.15M
FY2025 Q3
$163.69M
FY2025 Q4
$136.61M
FY2026 Q1
$91.89M
FY2026 Q2
$342.04M
FY2026 Q3
$23.60M
Revenue
$3.46B
Net income
$117.13M
Diluted EPS
2.12
Operating cash flow
$124.49M
Free cash flow
$23.60M
Fetching…
Sources
Revenue
$4.01B
Net income
$93.65M
Diluted EPS
1.70
Operating cash flow
$398.76M
Free cash flow
$342.04M
Fetching…
Sources
Revenue
$3.19B
Net income
$49.29M
Diluted EPS
0.89
Operating cash flow
$178.73M
Free cash flow
$91.89M
Fetching…
Sources
Revenue
$2.10B
Net income
$48.07M
Diluted EPS
0.88
Operating cash flow
$199.08M
Free cash flow
$136.61M
Fetching…
Sources
Revenue
$2.04B
Net income
$68.62M
Diluted EPS
1.26
Operating cash flow
$200.78M
Free cash flow
$163.69M
Fetching…
Sources
Revenue
$1.98B
Net income
$64.21M
Diluted EPS
1.16
Operating cash flow
$156.86M
Free cash flow
$126.15M
Fetching…
Sources
Revenue
$2.01B
Net income
$65.00M
Diluted EPS
1.16
Operating cash flow
$63.94M
Free cash flow
$46.85M
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Sources
Revenue
$2.02B
Net income
$61.38M
Diluted EPS
1.09
Operating cash flow
$51.88M
Free cash flow
$27.25M
Fetching…
Sources
Is it cheap or expensive?
Fair value $157.62 vs current price $169.97
Wall Street consensus is the average analyst price target: $262.50 (66.5% higher than our fair-value estimate).
Our most-likely fair value is $157.62 a share — about 7.3% away from today's price of $169.97, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $579.6M. Interest coverage 19.6x.
Net debt
$579.62M
Interest coverage
19.60x
Sanmina Corporation's profit covers its interest bill about 19.6 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
SANM
BASELINE
Sanmina Corporation
Total debt $2.43B Interest coverage 19.60x This is the baseline the peer rows are being compared against.
Total debt $4.02B Interest coverage 9.77x -50% vs SANM Carries about 2.0x less debt cushion than SANM.
Total debt $5.93B Interest coverage 6.73x -66% vs SANM Carries about 2.9x less debt cushion than SANM.
Total debt $981.20M Interest coverage 20.35x +4% vs SANM Has roughly the same debt cushion as SANM.
Total debt $306.96M Interest coverage 17.84x -9% vs SANM Has roughly the same debt cushion as SANM.
Total debt $291.82M Interest coverage 5.24x -73% vs SANM Carries about 3.7x less debt cushion than SANM.
What you should know
The case for and against SANM
3 Rewards
1 Risk
Rewards
-
Revenue grew 57.0% last year.
-
Returns 12.5% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 86.7% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.41x
Forward P/E
12.07x
P/B
3.56x
P/S
0.71x
EV/EBITDA
11.83x
PEG ratio
0.60x
Profitability
How much profit each dollar creates
Gross margin
9.0%
Operating margin
7.0%
Net margin
2.4%
ROE
12.5%
ROA
5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.88x
Current ratio
1.78x
Quick ratio
0.99x
Total debt
$2.43B
Total cash
$1.85B
Growth
How the business has been compounding
Revenue TTM
$12.76B
Revenue 5Y CAGR
4.8%
EPS TTM
5.59
EPS 5Y CAGR
3.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$901.06M
Free CF TTM
$473.30M
FCF margin
3.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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