In a world increasingly reliant on advanced technology, Sanmina Corporation stands at the forefront, shaping the way industries operate through its innovative manufacturing solutions. As a key player in the Hardware, Equipment & Parts sector, Sanmina delivers cutting-edge products and services that cater to diverse fields, including medical, defense, and automotive. With a reputation for quality and a commitment to excellence, I find myself questioning whether the company’s robust fundamentals continue to justify its current market valuation and growth trajectory.
Table of contents
Company Description
Sanmina Corporation (NASDAQ: SANM), founded in 1980 and headquartered in San Jose, California, operates as a leader in the integrated manufacturing solutions industry. With a market capitalization of approximately $8.53B, the company provides a diverse range of services including product design, engineering, prototyping, and logistics. Sanmina primarily serves original equipment manufacturers across various sectors such as industrial, medical, defense, automotive, and cloud solutions. The firm’s offerings span hardware, components, and after-market services, positioning it strategically in a dynamic market. By leveraging innovative technologies and robust supply chain management, Sanmina continues to shape industry standards and enhance operational efficiencies globally.
Fundamental Analysis
In this section, I will provide an overview of Sanmina Corporation’s fundamental analysis, focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes the income statement for Sanmina Corporation, providing a clear view of financial performance over the last few years.
| Item | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 6.74B | 7.92B | 8.94B | 7.57B | 8.13B |
| Cost of Revenue | 6.21B | 7.30B | 8.19B | 6.93B | 7.41B |
| Operating Expenses | 270M | 273M | 288M | 305M | 362M |
| Gross Profit | 526M | 622M | 743M | 640M | 716M |
| EBITDA | 411M | 434M | 567M | 469M | 463M |
| EBIT | 301M | 325M | 449M | 347M | 344M |
| Interest Expense | 20M | 22M | 36M | 29M | 4M |
| Net Income | 250M | 240M | 310M | 223M | 246M |
| EPS | 4.12 | 4.18 | 5.36 | 4.00 | 4.56 |
| Filing Date | 2021-11-12 | 2022-11-10 | 2023-11-16 | 2024-11-27 | 2025-11-13 |
Interpretation of Income Statement
Over the analyzed period, Sanmina Corporation has experienced fluctuations in revenue, peaking at 8.94B in 2023 before declining to 7.57B in 2024, and then rebounding slightly to 8.13B in 2025. Net income followed a similar trajectory, reaching a high of 310M in 2023 but dropping to 223M in 2024, before recovering to 246M in 2025. Notably, the gross profit margin showed slight stability despite changes in revenue, indicating effective cost management. In 2025, while revenue growth resumed, operating expenses increased significantly, warranting caution regarding future profitability.
Financial Ratios
Below is a summary of the financial ratios for Sanmina Corporation over the most recent fiscal years.
| Ratio | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Margin | 3.04% | 3.47% | 2.94% | 3.03% |
| ROE | 13.21% | 14.29% | 10.13% | 9.68% |
| ROIC | 14.78% | 12.51% | 8.60% | 9.11% |
| P/E | 11.75 | 10.13 | 17.10 | 25.59 |
| P/B | 1.55 | 1.45 | 1.73 | 2.48 |
| Current Ratio | 1.57 | 1.91 | 1.99 | 1.72 |
| Quick Ratio | 0.89 | 1.18 | 1.25 | 1.02 |
| D/E | 0.23 | 0.19 | 0.17 | 0.12 |
| Debt-to-Assets | 8.52% | 8.64% | 7.96% | 5.13% |
| Interest Coverage | 15.55 | 12.56 | 11.50 | 82.53 |
| Asset Turnover | 1.64 | 1.83 | 1.57 | 1.39 |
| Fixed Asset Turnover | 12.10 | 12.26 | 10.91 | 11.91 |
| Dividend Yield | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Analyzing Sanmina Corporation’s financial health in 2025 reveals a mixed picture across various ratios. The current ratio of 1.72 indicates good liquidity, allowing the company to cover short-term obligations. However, the solvency ratio of 0.11 suggests potential vulnerability as it indicates limited assets to cover total liabilities. Profitability ratios are moderate, with a net profit margin of 3.03%, indicating room for improvement. Efficiency is strong, with an asset turnover ratio of 1.39, indicating effective resource utilization. However, the debt-to-equity ratio of 0.12 shows relatively low leverage, which could limit growth opportunities. Overall, while liquidity and efficiency are strong, concerns over solvency and profitability warrant attention.
Evolution of Financial Ratios
Over the past five years, Sanmina’s financial ratios show a generally positive trend in liquidity and efficiency, with the current ratio improving from approximately 1.57 in 2022 to 1.72 in 2025. However, profitability ratios have fluctuated, with the net profit margin remaining relatively stable but low, suggesting ongoing challenges in maintaining robust profit levels.
Distribution Policy
Sanmina Corporation (SANM) does not currently pay dividends, as indicated by a dividend payout ratio of 0. Instead, the company appears to prioritize reinvestment in growth and research and development, aligning with its high growth phase. Notably, SANM also engages in share buyback programs, which can enhance shareholder value by reducing the number of outstanding shares. This strategy, while potentially beneficial, must be monitored for sustainability to ensure long-term value creation for shareholders.
Sector Analysis
Sanmina Corporation operates within the Hardware, Equipment & Parts industry, focusing on integrated manufacturing solutions and components for various sectors, including medical and aerospace. Its competitive advantages lie in advanced engineering capabilities and a broad service portfolio, supported by a SWOT analysis highlighting strengths in innovation and weaknesses in market dependency.
Strategic Positioning
Sanmina Corporation (SANM) occupies a vital niche within the hardware, equipment, and parts industry, leveraging a market share driven by its comprehensive integrated manufacturing solutions. The company’s competitive pressure remains intense, particularly from firms offering similar services. However, Sanmina’s focus on technological innovation and a diverse product range sets it apart. With its strong foothold in sectors like medical, aerospace, and cloud solutions, the company is well-positioned to adapt to potential disruptions and maintain a resilient market presence.
Revenue by Segment
The chart illustrates Sanmina Corporation’s revenue distribution by segment for the fiscal year 2025, highlighting key contributors to overall performance.
In 2025, Sanmina’s revenue was primarily driven by two segments: IMS at 6.51B and CPS Third Party Revenue at 1.62B. The IMS segment continues to show resilience, reflecting a slight growth from 6.03B in 2024, while CPS Third Party Revenue also increased from 1.53B. This performance indicates a stable trajectory for these segments, although the overall growth rate appears to be moderating. Investors should remain cautious about potential margin risks as reliance on these segments intensifies, especially in a competitive landscape.
Key Products
Sanmina Corporation offers a wide range of integrated manufacturing solutions and components tailored to various industries. Below is a table summarizing some of their key products:
| Product | Description |
|---|---|
| Integrated Manufacturing Solutions | Comprehensive services including product design, engineering, and supply chain management for OEMs. |
| Interconnect Systems | Includes printed circuit boards, backplanes, cable assemblies, and plastic injection moldings. |
| Mechanical Systems | Enclosures and precision machining for various applications, ensuring high-quality manufacturing standards. |
| Defense and Aerospace Products | Specialized components and systems designed for defense and aerospace industries, adhering to strict regulations. |
| Cloud-Based Manufacturing Software | Advanced software solutions for manufacturing execution, enhancing efficiency and tracking in production lines. |
| Memory and Storage Platforms | High-performance storage solutions, catering to the increasing demand for data management in cloud solutions. |
These products emphasize Sanmina’s commitment to quality and innovation across multiple sectors, including industrial, medical, automotive, and communications networks.
Main Competitors
The competitive landscape for Sanmina Corporation is characterized by several notable players in the technology sector, particularly in integrated manufacturing solutions and components.
| Company | Market Cap |
|---|---|
| MKS Inc. | 10.94B |
| Sanmina Corporation | 8.53B |
| Paylocity Holding Corporation | 8.13B |
| The Descartes Systems Group Inc. | 7.95B |
| TTM Technologies, Inc. | 7.62B |
| Cognex Corporation | 6.44B |
| Littelfuse, Inc. | 6.44B |
| Universal Display Corporation | 5.77B |
| Badger Meter, Inc. | 5.31B |
| Vontier Corporation | 5.25B |
| ESCO Technologies Inc. | 5.05B |
The main competitors of Sanmina Corporation are involved in various facets of technology and manufacturing, servicing a global market that includes industrial, medical, and automotive sectors.
Competitive Advantages
Sanmina Corporation (SANM) enjoys several competitive advantages that position it strongly in the hardware and manufacturing industry. Its integrated manufacturing solutions allow for streamlined operations, reducing costs and enhancing efficiency. The company is well-diversified across sectors such as medical, aerospace, and automotive, which mitigates risks associated with market fluctuations. Looking ahead, Sanmina is poised to capitalize on emerging opportunities in cloud-based manufacturing and advanced electronic solutions, as it continues to innovate and introduce new products. This strategic focus on high-growth markets will likely drive future profitability.
SWOT Analysis
The SWOT analysis provides a framework for evaluating Sanmina Corporation’s strategic position by identifying its strengths, weaknesses, opportunities, and threats.
Strengths
- Strong market presence
- Diverse service offerings
- Established customer relationships
Weaknesses
- High dependence on OEMs
- Limited dividend history
- Vulnerability to supply chain disruptions
Opportunities
- Growth in cloud solutions
- Expansion in defense and aerospace sectors
- Increasing demand for integrated manufacturing
Threats
- Intense competition
- Economic downturn risks
- Rapid technological changes
Overall, Sanmina Corporation’s strengths position it well in a growing market, while its weaknesses highlight areas needing attention. Opportunities in emerging sectors could drive growth, but the company must remain vigilant against competitive and economic threats to sustain its strategic advantage.
Stock Analysis
Over the past year, Sanmina Corporation (SANM) has demonstrated significant price movements, culminating in a noteworthy bullish trend driven by strong market dynamics.
Trend Analysis
Analyzing the stock’s performance over the past year, SANM has experienced a remarkable percentage change of +210.83%. This substantial increase indicates a bullish trend, characterized by acceleration in price movement. The stock reached notable highs of 170.31 and lows of 50.32, with a standard deviation of 25.99 suggesting a degree of volatility in its price movements. The recent trend from September 21, 2025, to December 7, 2025, also reflects a positive change of +33.63%, further supporting the bullish sentiment.
Volume Analysis
In the last three months, total trading volume for SANM has been recorded at approximately 281M, with buyer-driven activity dominating the market. The buyer volume reached 161M, accounting for 57.46% of total transactions, while seller volume was at 117M. The volume trend is increasing, indicating strong investor participation and a sentiment leaning towards bullish behavior, particularly with the recent period reflecting a buyer dominance of 71.21% from September 21, 2025, to December 7, 2025. This trend suggests a robust confidence among investors in SANM’s future performance.
Analyst Opinions
Recent analyst recommendations for Sanmina Corporation (SANM) indicate a strong consensus towards a buy rating. Analysts highlight the company’s robust financial metrics, particularly its impressive scores in discounted cash flow, return on equity, and return on assets, all rated at 4. Notably, the overall score stands at 4, reflecting a solid investment outlook. Analysts suggest that while the debt-to-equity and price-to-earnings scores are slightly lower at 3, the overall financial health supports a positive investment thesis. Therefore, I believe the consensus remains a buy for 2025.
Stock Grades
Sanmina Corporation (SANM) has received consistent assessments from reliable grading companies. Below is a summary of the most recent stock grades.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Maintain | Neutral | 2025-07-11 |
| B of A Securities | Maintain | Neutral | 2025-06-09 |
| B of A Securities | Upgrade | Neutral | 2025-01-29 |
| Craig-Hallum | Maintain | Hold | 2024-11-05 |
| Craig-Hallum | Downgrade | Hold | 2024-04-30 |
| Sidoti & Co. | Upgrade | Buy | 2022-11-08 |
| Sidoti & Co. | Upgrade | Buy | 2022-11-07 |
| Sidoti & Co. | Downgrade | Neutral | 2022-10-31 |
| Sidoti & Co. | Downgrade | Neutral | 2022-10-30 |
| Craig-Hallum | Maintain | Buy | 2022-08-02 |
The overall trend indicates a stabilizing sentiment around Sanmina Corporation, with several recent upgrades to “Neutral” or “Hold” after previously being rated lower. The fluctuations in grades suggest cautious optimism, yet investors should remain vigilant about market conditions and company performance.
Target Prices
The consensus target price for Sanmina Corporation (SANM) shows a clear expectation from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 62 | 62 | 62 |
Analysts are uniformly optimistic, indicating a target price of 62, reflecting a strong consensus on SANM’s potential.
Consumer Opinions
Consumer sentiment regarding Sanmina Corporation (SANM) reveals a mix of satisfaction and criticism, reflecting the diverse experiences of its clients.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent quality and reliability in products.” | “Customer service response times are slow.” |
| “Innovative solutions that meet our needs.” | “Pricing can be higher than competitors.” |
| “Strong commitment to sustainability.” | “Occasional delivery delays.” |
Overall, consumer feedback indicates that Sanmina excels in product quality and innovation but faces challenges with customer service and pricing competitiveness.
Risk Analysis
In assessing Sanmina Corporation (SANM), it’s crucial to identify and evaluate potential risks that could impact its performance. Below is a summary of key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in the global market could affect demand. | High | High |
| Supply Chain Issues | Disruptions in the supply chain can delay production. | Medium | High |
| Regulatory Changes | New regulations could impact operational costs. | Medium | Medium |
| Technological Risks | Rapid tech advancements may render products obsolete. | High | Medium |
| Competition | Increased competition may erode market share. | High | High |
The most pressing risks for SANM are market volatility and competition, both of which have a high probability of occurrence and significant potential impact on operations.
Should You Buy Sanmina Corporation?
Sanmina Corporation (SANM) reported a net income of 245.89M for FY2025, indicating a positive net profit margin of 3.05%. The company’s return on invested capital (ROIC) of 9.11% exceeds its weighted average cost of capital (WACC) of 8.39%, suggesting effective value creation. With a total debt of 300.47M and a debt-to-equity ratio of 0.11, Sanmina maintains a manageable debt level. The overall rating of A reflects solid fundamentals, but investors may want to consider market conditions before making any decisions.
Favorable signals
Sanmina Corporation has shown a few favorable elements in its financial evaluation. The company has a favorable gross profit growth of 11.86%, indicating an increase in profitability on its core operations. Additionally, the interest expense percentage is low at 0.05%, which is positive for its financial health. Furthermore, the current ratio of 1.72, quick ratio of 1.02, and debt-to-equity ratio of 0.12 demonstrate a solid liquidity position and low debt levels.
Unfavorable signals
Despite the favorable points, there are several unfavorable signals present. The net margin stands at 3.03%, indicating limited profitability. Moreover, the return on equity (ROE) is at 9.68%, which is considered unfavorable. The price-to-earnings (P/E) ratio of 25.59 could also be seen as high, suggesting the stock may be overvalued. Lastly, the ebit growth of -0.86% indicates declining operational profitability.
Conclusion
With a neutral global income statement opinion and a favorable ratios evaluation, Sanmina Corporation might appear to be a mixed investment opportunity. Given the recent seller volume exceeding buyer volume, it could be prudent to wait for buyers to return before making any decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Norges Bank Takes $63.67 Million Position in Sanmina Corporation $SANM – MarketBeat (Dec 06, 2025)
- Why Is Sanmina (SANM) Down 5.8% Since Last Earnings Report? – Yahoo Finance (Dec 03, 2025)
- Sanmina Corporation’s (NASDAQ:SANM) Financials Are Too Obscure To Link With Current Share Price Momentum: What’s In Store For the Stock? – simplywall.st (Dec 04, 2025)
- State Board of Administration of Florida Retirement System Has $2.62 Million Stock Position in Sanmina Corporation $SANM – MarketBeat (Dec 06, 2025)
- SANM’s Robust Portfolio Fueling Revenues: Will the Trend Persist? – WV News (Dec 04, 2025)
For more information about Sanmina Corporation, please visit the official website: sanmina.com
