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1. Company Snapshot

1.a. Company Description

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide.It operates in two businesses, Integrated Manufacturing Solutions; and Components, Products and Services.The company offers product design and engineering, including concept development, detailed design, prototyping, validation, preproduction, manufacturing design release, and product industrialization; assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services, as well as engages in the manufacturing of components, subassemblies, and complete systems.


In addition, the company provides interconnect systems, such as printed circuit board fabrication, backplane, cable assemblies, and plastic injection moldings; mechanical systems comprising enclosures and precision machining; memory, storage platforms, radio frequency, optical, and microelectronic solutions; defense and aerospace products; and cloud-based manufacturing execution software.It offers its products and services primarily to original equipment manufacturers in the industrial, medical, defense and aerospace, automotive, communications networks, and cloud solutions industries.Sanmina Corporation was founded in 1980 and is headquartered in San Jose, California.

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1.b. Last Insights on SANM

Sanmina Corporation's recent performance was driven by strong Q4 results, with revenues climbing across end markets and earnings topping expectations. The company's optimistic guidance for FY26 and solid cash flow growth also contributed to its momentum. Additionally, Sanmina's partnership with AMD, which saw a significant stock price surge, likely had a positive impact. The company's earnings per share (EPS) of $1.67 beat the Zacks Consensus Estimate of $1.57. Sanmina's growth metrics have earned it a spot on several "Strong Buy" growth stocks lists, including those from Zacks Rank.

1.c. Company Highlights

2. Sanmina's Strong Fiscal 2025 Results and Promising Outlook

Sanmina reported a robust fiscal year 2025, with revenue reaching $8.13 billion, a 7.4% year-over-year growth, and non-GAAP operating margin expanding 30 basis points to 5.7%. Non-GAAP EPS came in at $6.04, representing a 14.4% year-over-year growth. The company's fourth quarter results met or exceeded expectations, with revenue of $2.1 billion, non-GAAP gross margin of 9.4%, and non-GAAP diluted EPS of $1.67, beating estimates of $1.57. As Jure Sola noted, the company's performance was driven by broad-based demand across most end markets, particularly in communication networks and cloud and AI.

Publication Date: Nov -08

📋 Highlights

Segment Performance

The company's segment results were strong, with IMS revenue up 3.3% year-over-year and CPS revenue up 7.3% year-over-year. The CPS segment's performance was driven by revenue growth, favorable mix, and ongoing operational efficiencies. The company's balance sheet remains strong, with cash and cash equivalents of $926 million and no outstanding borrowings on its $800 million revolver.

Acquisition of ZT Systems

The acquisition of ZT Systems is expected to be transformative for Sanmina, increasing its scale, expanding its capabilities, and enabling it to capitalize on growth opportunities in the cloud and AI end market. The purchase price is estimated to be $2.05 billion, with a contingent consideration of up to $450 million based on the financial performance of the business over the next three years.

Outlook and Valuation

The company provided a promising outlook for the first quarter of 2026, expecting revenue between $2.9 billion to $3.2 billion, with non-GAAP operating margin of 5.6% to 6.1%. Analysts estimate next year's revenue growth at 73.1%. With a current P/E Ratio of 37.1 and EV/EBITDA of 18.91, the market is pricing in significant growth expectations. Sanmina's ROIC of 9.11% and ROE of 10.57% indicate a strong ability to generate returns. The acquisition of ZT Systems is expected to drive growth and margin expansion, with the company targeting $16 billion in revenue by calendar 2027.

End Market Trends

The company's end markets are expected to drive growth, with Industrial and Energy leading the way, followed by Medical and Defense and Aerospace. Communication Networks and Cloud and AI infrastructure saw strong demand, with growth expected in the second half of calendar year 2026 and beyond. The acquisition of ZT Systems is expected to complement Sanmina's advanced cloud AI technology, enabling full system integration at scale.

3. NewsRoom

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SANM's Robust Portfolio Fueling Revenues: Will the Trend Persist?

Dec -04

Source:

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Best Growth Stocks to Buy for Dec.4

Dec -04

Source: zacks.com

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Sanmina Corporation (SANM) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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SANM Skyrockets 92.5% in a Year: Should You Buy the Stock?

Dec -03

Source:

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Sanmina Corporation (SANM) Presents at Bank of America Leveraged Finance Conference Transcript

Dec -02

Source: seekingalpha.com

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Best Growth Stocks to Buy for Dec.2

Dec -02

Source: zacks.com

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American Century Companies Inc. Trims Stake in Sanmina Corporation $SANM

Nov -29

Source: defenseworld.net

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Best Growth Stocks to Buy for Nov. 26

Nov -26

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.57%)

6. Segments

Integrated Manufacturing Solutions

Expected Growth: 8%

Sanmina's Integrated Manufacturing Solutions' 8% growth is driven by increasing demand for complex electronics, growing adoption of IoT and 5G technologies, and expansion into new markets such as healthcare and aerospace. Additionally, the company's focus on operational efficiency, supply chain optimization, and strategic acquisitions contribute to its growth momentum.

Components, Products and Services

Expected Growth: 6%

Sanmina Corporation's 6% growth is driven by its Components segment, led by increasing demand for complex PCBs and optical components. The Products segment benefits from growing sales of storage and networking equipment. The Services segment is fueled by rising demand for electronics manufacturing services, particularly in the industrial, medical, and automotive markets.

Intersegment Revenue

Expected Growth: 5%

Sanmina Corporation's 5% intersegment revenue growth is driven by increasing demand for electronic manufacturing services in the industrial, medical, and automotive sectors. Additionally, the company's strategic acquisitions, expanded manufacturing capabilities, and cost savings initiatives have contributed to the growth. Furthermore, the rising trend of outsourcing manufacturing services and the need for supply chain optimization have also fueled the segment's revenue growth.

7. Detailed Products

Printed Circuit Boards (PCBs)

Sanmina designs and manufactures complex printed circuit boards for various industries, including automotive, industrial, medical, and aerospace.

Backplane Assemblies

Sanmina designs and manufactures custom backplane assemblies for high-performance computing, data storage, and networking applications.

Cable Assemblies

Sanmina designs and manufactures custom cable assemblies for various industries, including automotive, industrial, medical, and aerospace.

Optical and Photonics

Sanmina designs and manufactures optical and photonic components, including optical transceivers, optical engines, and optical interconnects.

Mechanical Systems

Sanmina designs and manufactures custom mechanical systems, including enclosures, chassis, and thermal management solutions.

Electromechanical Assemblies

Sanmina designs and manufactures custom electromechanical assemblies, including power supplies, fans, and other components.

Design and Engineering Services

Sanmina offers design and engineering services, including product design, prototyping, and testing.

Manufacturing and Test Services

Sanmina offers manufacturing and test services, including PCB assembly, box build, and functional testing.

8. Sanmina Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Sanmina Corporation operates in the electronics manufacturing services (EMS) industry, which is characterized by a moderate threat of substitutes. While there are some substitutes available, such as original design manufacturers (ODMs) and contract manufacturers, they are not a significant threat to Sanmina's business.

Bargaining Power Of Customers

Sanmina Corporation's customers, such as Cisco Systems, Hewlett Packard Enterprise, and IBM, have significant bargaining power due to their large size and purchasing power. This gives them the ability to negotiate prices and terms, which can negatively impact Sanmina's profitability.

Bargaining Power Of Suppliers

Sanmina Corporation's suppliers, such as component manufacturers, have limited bargaining power due to the company's large scale and global presence. This gives Sanmina the ability to negotiate favorable prices and terms with its suppliers.

Threat Of New Entrants

The threat of new entrants in the EMS industry is low due to the high barriers to entry, including the need for significant capital investment, specialized equipment, and a skilled workforce. This makes it difficult for new companies to enter the market and compete with established players like Sanmina.

Intensity Of Rivalry

The EMS industry is highly competitive, with several large players competing for market share. Sanmina Corporation faces intense competition from companies like Flex, Jabil, and Celestica, which can lead to pricing pressure and reduced profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.73%
Debt Cost 8.98%
Equity Weight 87.27%
Equity Cost 8.98%
WACC 8.98%
Leverage 14.59%

11. Quality Control: Sanmina Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Teledyne Technologies

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Value: 2.8

Growth: 6.3

Quality: 6.9

Yield: 0.0

Momentum: 8.0

Volatility: 10.0

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ESCO Technologies

A-Score: 5.1/10

Value: 1.6

Growth: 6.1

Quality: 5.9

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

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A-Score: 5.0/10

Value: 4.9

Growth: 3.8

Quality: 6.3

Yield: 0.0

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Sanmina

A-Score: 4.7/10

Value: 4.2

Growth: 5.0

Quality: 5.6

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

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A-Score: 4.4/10

Value: 3.6

Growth: 4.7

Quality: 5.6

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

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A-Score: 4.2/10

Value: 2.7

Growth: 4.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

158.09$

Current Price

158.09$

Potential

-0.00%

Expected Cash-Flows