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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

Breaking News: Sanmina Corporation SANM along with NVST and WDC has been listed as a Zacks Rank #1 Strong Buy growth stock as of February 12 2026. The companys recent earnings release showed a strong performance. Analysts at Zacks have given SANM a strong buy recommendation. Other analysts from various firms have also been covering the stock. SANM operates in the electronics manufacturing services industry and provides services to various clients. The company has been making progress in its business operations. SANM has been ranked high due to its growth prospects.

1.c. Company Highlights

2. Sanmina's Q1 FY2026 Earnings: Strong Performance and Promising Outlook

Sanmina reported a robust financial performance in the first quarter of fiscal 2026, with revenue reaching $3.19 billion, non-GAAP operating margin at 6%, and non-GAAP diluted earnings per share (EPS) of $2.38, exceeding the company's outlook. The strong EPS beat is notable, as it came in above estimates of $2.15. The company's revenue growth was driven by its Integrated Manufacturing Solutions (IMS) segment, which saw a 72% year-over-year increase to $2.79 billion, fueled by growth in communications networks and cloud and AI infrastructure end markets.

Publication Date: Feb -09

📋 Highlights
  • Q1 Revenue and Margins:: Generated $3.19B revenue, 6% non-GAAP operating margin, and $2.38 non-GAAP EPS, exceeding guidance.
  • IMS Segment Growth:: IMS revenue surged 72% YoY to $2.79B, driven by communications networks and cloud/AI infrastructure, with 8.7% non-GAAP gross margin.
  • Balance Sheet Strength:: Maintained $1.42B in cash and $1.5B undrawn revolver, with 32.1% non-GAAP pretax ROIC, surpassing WACC.
  • AI and ZT Systems Growth:: Targeting $16B in AI-related revenue by 2027, with ZT Systems integration driving $14-16B in potential opportunities.
  • Q2 Guidance and Fiscal 2026 Outlook:: Forecasts $3.1-3.4B revenue, 5.7-6.2% non-GAAP margin, and $2.25-2.55 EPS, aligning with FY26 expectations.

Segment Performance and Outlook

The IMS segment's non-GAAP gross margin improved to 8.7%, up 80 basis points compared to the same period last year. Sanmina's diversified business model is yielding positive results, with strong demand in the communications networks and cloud infrastructure segment. The company is well-positioned for growth in these areas, with a strong pipeline of new projects. For the second quarter, Sanmina expects revenue to be between $3.1 billion and $3.4 billion, with non-GAAP operating margin ranging from 5.7% to 6.2%.

Valuation and Growth Prospects

Sanmina's current valuation metrics indicate a relatively high price-to-earnings (P/E) ratio of 35.25 and a price-to-sales (P/S) ratio of 0.88. Analysts estimate revenue growth of 12.9% for the next year, which may justify the current valuation to some extent. However, it is essential to monitor the company's ability to execute on its growth plans and maintain its operating margin. The return on invested capital (ROIC) of 32.1% for the quarter is well above the weighted average cost of capital, indicating a strong return on investment.

Growth Drivers and Investment Opportunities

Sanmina is poised for growth in various segments, including cloud and AI infrastructure, defense and aerospace, and industrial and energy. The company's acquisition of ZT Systems is expected to drive significant growth, with opportunities worth $14-$16 billion. Sanmina is investing $85-$90 million for future opportunities, primarily for 2027 and 2028, demonstrating its commitment to growth and expansion. The integration of ZT Systems is progressing well, and the company is confident in its ability to execute on its plans.

3. NewsRoom

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Best Growth Stocks to Buy for February 12th

Feb -12

Source: zacks.com

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SANM Rises 26.4% in the Past 6 Months: Should You Buy the Stock?

Feb -05

Source: zacks.com

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Sanmina: All About The Outlook

Feb -01

Source: seekingalpha.com

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Sanmina: Post-Earnings Crash Presents Undervalued AI Opportunity

Jan -28

Source: seekingalpha.com

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Sanmina Q1 Earnings Call Highlights

Jan -28

Source: defenseworld.net

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Why Sanmina Stock Plummeted by Almost 22% Today

Jan -28

Source: fool.com

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Sanmina Faces Pressure Despite Strong Q1 Results and AI Growth Prospects

Jan -27

Source: gurufocus.com

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Sanmina Q1 Earnings Beat Estimates on Healthy Top-Line Growth

Jan -27

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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ESCO Technologies

A-Score: 5.8/10

Value: 3.0

Growth: 7.7

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

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Teledyne Technologies

A-Score: 5.4/10

Value: 3.1

Growth: 6.3

Quality: 6.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.3

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Sanmina

A-Score: 4.9/10

Value: 4.2

Growth: 6.2

Quality: 5.7

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

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Vontier

A-Score: 4.6/10

Value: 5.5

Growth: 3.7

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 7.3

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Littelfuse

A-Score: 4.5/10

Value: 3.3

Growth: 4.2

Quality: 6.1

Yield: 1.0

Momentum: 6.0

Volatility: 6.3

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Plexus

A-Score: 4.2/10

Value: 4.0

Growth: 6.2

Quality: 5.5

Yield: 0.0

Momentum: 3.5

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

145.81$

Current Price

145.81$

Potential

-0.00%

Expected Cash-Flows