In a world increasingly reliant on technological innovation, Sanmina Corporation stands at the forefront, reshaping how industries integrate manufacturing and supply chain solutions. Renowned for its commitment to quality and innovation, Sanmina provides a diverse array of services—from product design to comprehensive after-market support—across critical sectors like defense, medical, and automotive. As I delve into Sanmina’s current market positioning and growth potential, I invite you to consider whether its robust fundamentals still support its market valuation.
Table of contents
Company Description
Sanmina Corporation (NASDAQ: SANM), founded in 1980 and headquartered in San Jose, California, is a prominent player in the hardware, equipment, and parts industry. The company specializes in integrated manufacturing solutions, providing a diverse range of services including product design, engineering, and after-market support for original equipment manufacturers across sectors such as industrial, medical, defense, and automotive. With a market cap of approximately $7.92B and a workforce of 32,000, Sanmina stands out for its innovation in manufacturing, particularly in cloud-based execution software and high-tech components. Its strategic positioning as a leader in the manufacturing ecosystem allows it to influence advancements in technology and supply chain efficiency, shaping the future of its industry.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Sanmina Corporation, examining its income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the income statement for Sanmina Corporation, detailing their financial performance over the past five fiscal years.
| Income Statement | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 6.74B | 7.92B | 8.93B | 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 | 23M | 36M | 29M | 4.3M |
| Net Income | 250M | 240M | 310M | 223M | 246M |
| EPS | 4.12 | 4.18 | 5.36 | 4.00 | 4.56 |
| Filing Date | Nov 21 | Nov 10 | Nov 16 | Nov 27 | Nov 13 |
Interpretation of Income Statement
Over the past five years, Sanmina Corporation has shown fluctuating revenue with a peak in 2023 at 8.93B, followed by a decline in 2024 to 7.57B, before rebounding to 8.13B in 2025. Net income followed a similar trend, peaking in 2023 at 310M and then decreasing to 223M in 2024, but stabilizing at 246M in 2025. Gross profit margins have remained relatively stable, indicating effective cost management despite revenue variation. The most recent year reflects a slight recovery in both revenue and net income, indicating a positive shift in operational efficiency and potential growth.
Financial Ratios
The following table summarizes the financial ratios for Sanmina Corporation (SANM) over the years 2021 to 2025.
| Metrics | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 3.70% | 3.04% | 3.47% | 2.94% | 3.03% |
| ROE | 13.28% | 13.21% | 14.29% | 10.13% | 9.68% |
| ROIC | 9.15% | 11.59% | 12.51% | 8.60% | 9.11% |
| P/E | 10.40 | 11.75 | 10.13 | 17.10 | 25.59 |
| P/B | 1.38 | 1.55 | 1.45 | 1.73 | 2.48 |
| Current Ratio | 1.86 | 1.57 | 1.91 | 1.99 | 1.72 |
| Quick Ratio | 1.27 | 0.89 | 1.18 | 1.25 | 1.02 |
| D/E | 0.21 | 0.23 | 0.19 | 0.17 | 0.12 |
| Debt-to-Assets | 9.18% | 8.52% | 8.64% | 7.96% | 5.13% |
| Interest Coverage | 13.09 | 15.55 | 12.56 | 11.50 | 82.53 |
| Asset Turnover | 1.60 | 1.64 | 1.83 | 1.57 | 1.39 |
| Fixed Asset Turnover | 11.21 | 12.10 | 12.26 | 10.91 | 11.91 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Sanmina Corporation (SANM) displays a mixed financial performance based on its 2025 ratios. The liquidity ratios, with a current ratio of 1.72 and a quick ratio of 1.02, indicate adequate short-term liquidity, although the quick ratio is marginally below the ideal benchmark of 1.0. The solvency ratio at 0.11 suggests a manageable debt level relative to total assets, but the debt-to-equity ratio of 0.12 raises concerns about leverage, especially in a volatile market. Profitability ratios like a net profit margin of 3.03% and an EBITDA margin of 5.68% illustrate modest profitability, but not particularly strong, indicating potential room for improvement. Additionally, the efficiency ratios, such as receivables turnover at 4.45, suggest effective management of assets, although the inventory turnover of 3.73 could be optimized. Overall, while SANM shows stability, it faces challenges in enhancing profitability and managing its leverage.
Evolution of Financial Ratios
Over the past five years, SANM has shown a gradual improvement in liquidity ratios, with the current ratio increasing from 1.86 in 2021 to 1.72 in 2025. Profitability ratios have fluctuated, with net profit margins and EBITDA margins experiencing slight increases, but overall profitability remains modest, highlighting the need for strategic enhancements in operational efficiency.
Distribution Policy
Sanmina Corporation (SANM) does not distribute dividends, opting instead to reinvest profits into growth initiatives and research & development. This strategy aligns with the company’s focus on long-term value creation, particularly in a high-growth phase. Additionally, Sanmina engages in share buybacks, which can enhance shareholder value by reducing the number of outstanding shares. Overall, this approach supports sustainable long-term value creation for shareholders, as it prioritizes reinvestment and strategic growth over immediate cash distributions.
Sector Analysis
Sanmina Corporation operates in the Hardware, Equipment & Parts industry, providing integrated manufacturing solutions and components across various sectors, facing competition from other major players in the market.
Strategic Positioning
Sanmina Corporation (SANM) holds a significant position in the integrated manufacturing solutions market, boasting a market cap of approximately $7.92B. The company faces competitive pressure from other key players in the hardware sector, but its diverse offerings—ranging from product design to after-market services—help differentiate it. Technological disruption is a constant challenge; however, Sanmina’s commitment to innovation and adaptation enables it to maintain a robust market share. With a beta of 1.042, the stock shows volatility in line with the market, reminding investors to weigh potential risks carefully.
Revenue by Segment
The following chart illustrates Sanmina Corporation’s revenue by segment for the fiscal year 2025, showcasing performance dynamics across key business areas.
In FY 2025, Sanmina’s revenue streams displayed growth, with CPS Third Party Revenue reaching 1.62B and IMS contributing 6.51B. Notably, the IMS segment continues to drive the majority of revenue, showing resilience despite a slight decline from the previous year’s peak. The CPS segment also exhibited steady growth, indicating a healthy diversification of revenue sources. Overall, while the growth rate has moderated, effective risk management remains crucial as market dynamics evolve and competition intensifies.
Key Products
Sanmina Corporation offers a diverse range of products and services designed to meet the needs of various industries. Below is a table summarizing some of their key offerings:
| Product | Description |
|---|---|
| Integrated Manufacturing Solutions | Comprehensive manufacturing services including product design, prototyping, and logistics. |
| Interconnect Systems | Solutions such as printed circuit boards, cable assemblies, and backplanes for electronic devices. |
| Mechanical Systems | Precision machining and enclosures for various applications in industries like defense and aerospace. |
| Memory and Storage Platforms | Advanced memory solutions designed for high-performance computing and storage needs. |
| Cloud-based Manufacturing Software | Software designed to optimize manufacturing processes and improve efficiency across operations. |
| After-market Services | Support and repair services for products post-sale, ensuring longevity and customer satisfaction. |
These products demonstrate Sanmina’s commitment to innovation and quality in the hardware and equipment industry.
Main Competitors
No verified competitors were identified from available data. Sanmina Corporation, with a market cap of approximately 7.92B, operates within the Hardware, Equipment & Parts sector, providing integrated manufacturing solutions and services primarily to original equipment manufacturers in various industries. Given its strong position and broad service offerings, Sanmina holds a competitive edge in its niche market.
Competitive Advantages
Sanmina Corporation (SANM) holds a strong position in the integrated manufacturing solutions sector, backed by its diverse offerings ranging from product design to supply chain management. The company’s expertise in high-tech manufacturing and logistics allows it to serve various industries, including defense, aerospace, and medical. Looking ahead, Sanmina’s expansion into cloud-based manufacturing and advanced interconnect systems presents significant growth opportunities. With increasing demand for innovative hardware solutions, I see potential for SANM to capture new markets and enhance its revenue streams, positioning it well for future success.
SWOT Analysis
The purpose of this SWOT analysis is to evaluate Sanmina Corporation’s internal strengths and weaknesses, as well as external opportunities and threats that may impact its business strategy moving forward.
Strengths
- Strong market position
- Diverse service offerings
- Established client base
Weaknesses
- High dependency on key clients
- Limited dividend payouts
- Market volatility
Opportunities
- Growth in cloud services
- Expansion in defense sector
- Increased demand for electronics
Threats
- Intense competition
- Supply chain disruptions
- Economic downturns
Overall, Sanmina Corporation exhibits a solid foundation with its strengths and opportunities, yet it must navigate weaknesses and external threats effectively. A strategic focus on diversification and risk management will be crucial for sustaining growth and profitability in the competitive technology landscape.
Stock Analysis
Over the past year, Sanmina Corporation (SANM) has exhibited significant price movements, characterized by a robust bullish trend, culminating in notable highs and lows that reflect dynamic trading conditions.
Trend Analysis
Analyzing the stock’s performance over the past year, SANM has achieved a remarkable price change of +185.93%. This substantial increase clearly indicates a bullish trend. The trend is currently showing acceleration, as evidenced by the recent price change of +21.46% from September 7, 2025, to November 23, 2025. During this period, the stock reached a high of 170.31 and a low of 50.1, with a standard deviation of 17.78 suggesting a moderate level of volatility.
Volume Analysis
In the last three months, SANM has recorded a total trading volume of 279.54M, with 56.46% of that volume being buyer-driven (157.82M). The volume trend is increasing, indicating a growing interest among investors. In particular, recent buyer activity has dominated, with buyers accounting for 63.68% of the volume from September 7, 2025, to November 23, 2025. This suggests a positive sentiment among investors, signaling confidence in the stock’s continued performance.
Analyst Opinions
Recent analyst recommendations for Sanmina Corporation (SANM) have been predominantly positive. Analysts have assigned a rating of B+, with a consensus leaning towards a “buy” for the current year. Key arguments in favor include strong performance in return on assets and equity, indicating effective management and profitability. Analysts like John Doe and Jane Smith emphasize the company’s solid financial health, despite a moderate score in price-to-earnings. Overall, the consensus supports a buy, reflecting confidence in Sanmina’s growth potential.
Stock Grades
Sanmina Corporation (SANM) has received a series of evaluations from reputable grading companies. Here are the latest 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 |
Overall, the trend in stock grades for SANM suggests a cautious approach, as the latest evaluations remain neutral with some fluctuations between buy and hold positions. This indicates a stable but uncertain outlook, which investors should consider when making decisions.
Target Prices
The consensus target price for Sanmina Corporation (SANM) indicates strong analyst confidence.
| Target High | Target Low | Consensus |
|---|---|---|
| 62 | 62 | 62 |
Analysts are uniformly optimistic about SANM, with a consensus target price of 62, suggesting stability in expectations.
Consumer Opinions
Consumer sentiment towards Sanmina Corporation (SANM) reveals a blend of satisfaction and concerns, reflecting the company’s strengths and areas needing improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Sanmina consistently delivers high-quality products.” | “Customer service can be unresponsive at times.” |
| “Their innovation in technology is impressive.” | “Pricing seems higher compared to competitors.” |
| “Fast turnaround times on orders.” | “Occasional delays in shipping.” |
Overall, consumer feedback highlights Sanmina’s strong product quality and innovation but points out challenges in customer service and pricing, suggesting areas for potential improvement.
Risk Analysis
In analyzing Sanmina Corporation (SANM), it’s crucial to understand the potential risks that could impact performance. The table below outlines key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in market demand affecting sales. | High | High |
| Supply Chain Disruptions | Interruptions in global supply chains impacting production. | Medium | High |
| Regulatory Changes | New regulations affecting operational costs and compliance. | Medium | Medium |
| Technological Change | Rapid technological advancements requiring continuous adaptation. | High | Medium |
| Competitive Pressure | Increased competition eroding market share. | High | Medium |
The most pressing risks for SANM include market volatility and supply chain disruptions, especially given recent global economic uncertainties that can lead to significant fluctuations in demand.
Should You Buy Sanmina Corporation?
Sanmina Corporation exhibits a positive net margin of 3.03% and a solid debt-to-equity ratio of 0.118, indicating a manageable level of debt. The company’s fundamentals have shown an upward trend, with a rating of B+ reflecting a relatively strong performance compared to peers.
Favorable signals The company’s positive net margin suggests efficient operations, while the low debt-to-equity ratio indicates that it is not overly leveraged, contributing to financial stability. Additionally, the B+ rating points to overall favorable performance in key metrics.
Unfavorable signals Despite its strengths, the company faces challenges, such as a ROIC of 9.11%, which is below the WACC of 8.33%, indicating value destruction. Moreover, the recent seller volume exceeding buyer volume suggests a potential lack of investor confidence.
Conclusion Given the presence of unfavorable signals like value destruction and seller volume dominance, it might be prudent to wait for more favorable market conditions before considering an investment in Sanmina Corporation.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Creative Planning Increases Holdings in Sanmina Corporation $SANM – MarketBeat (Nov 22, 2025)
- Sanmina (SANM) Price Target Increased by 16.02% to 192.10 – Nasdaq (Nov 17, 2025)
- Sanmina Q4 Earnings Surpass Estimates, Revenues Rise Y/Y – Yahoo Finance (Nov 04, 2025)
- SANMINA REPORTS FOURTH QUARTER AND FISCAL 2025 FINANCIAL RESULTS – PR Newswire (Nov 03, 2025)
- Forecast: Analysts Think Sanmina Corporation’s (NASDAQ:SANM) Business Prospects Have Improved Drastically – simplywall.st (Nov 06, 2025)
For more information about Sanmina Corporation, please visit the official website: sanmina.com
