Sanmina Corporation
Sanmina Corporation Fundamental Analysis
Sanmina Corporation (SANM) shows weak financial fundamentals with a PE ratio of 49.03, profit margin of 2.29%, and ROE of 10.88%. The company generates $11.2B in annual revenue with moderate year-over-year growth of 7.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SANM's fundamental strength across five key dimensions:
Efficiency Score
WeakSANM struggles to generate sufficient returns from assets.
Valuation Score
WeakSANM trades at a premium to fair value.
Growth Score
ExcellentSANM delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSANM maintains a strong and stable balance sheet.
Profitability Score
WeakSANM struggles to sustain strong margins.
Key Financial Metrics
Is SANM Expensive or Cheap?
P/E Ratio
SANM trades at 49.03 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SANM's PEG of 5.72 indicates potential overvaluation.
Price to Book
The market values Sanmina Corporation at 5.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.18 times EBITDA. This signals the market has high growth expectations.
How Well Does SANM Make Money?
Net Profit Margin
For every $100 in sales, Sanmina Corporation keeps $2.29 as profit after all expenses.
Operating Margin
Core operations generate 4.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.88 in profit for every $100 of shareholder equity.
ROA
Sanmina Corporation generates $2.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sanmina Corporation generates limited operating cash flow of $965.69M, signaling weaker underlying cash strength.
Free Cash Flow
Sanmina Corporation produces free cash flow of $725.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $13.54 in free cash annually.
FCF Yield
SANM converts 5.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SANM Stacks Against Its Sector Peers
| Metric | SANM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.03 | 36.74 | Worse (Expensive) |
| ROE | 10.88% | 968.00% | Weak |
| Net Margin | 2.29% | 5945062585.00% | Weak |
| Debt/Equity | 0.90 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.71 | 4.94 | Neutral |
| ROA | 2.68% | -296476.00% (disorted) | Weak |
SANM outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sanmina Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.45%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
131.23%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
158.60%
Industry Style: Growth, Innovation, High Beta
High Growth