SANMINA CORP (SANM) Stock Fundamental Analysis
USA - NASDAQ:SANM - US8010561020 - Common Stock
127.23 USD
-2.47 (-1.9%)
127.5 USD
+0.27 (+0.21%)
Taking everything into account, SANM scores 6 out of 10 in our fundamental rating. SANM was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. SANM scores excellent on profitability, but there are some minor concerns on its financial health. SANM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SANM was profitable.
In the past year SANM had a positive cash flow from operations.
Each year in the past 5 years SANM has been profitable.
In the past 5 years SANM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SANM (4.96%) is better than 70.73% of its industry peers.
SANM's Return On Equity of 11.30% is fine compared to the rest of the industry. SANM outperforms 75.61% of its industry peers.
SANM has a Return On Invested Capital of 9.82%. This is amongst the best in the industry. SANM outperforms 82.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SANM is in line with the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 11.3% | ||
| ROIC | 9.82% |
ROA(3y)5.31%
ROA(5y)5.12%
ROE(3y)12.54%
ROE(5y)11.9%
ROIC(3y)11.14%
ROIC(5y)10.2%
1.3 Margins
SANM's Profit Margin of 3.22% is fine compared to the rest of the industry. SANM outperforms 60.98% of its industry peers.
SANM's Profit Margin has improved in the last couple of years.
SANM's Operating Margin of 4.70% is fine compared to the rest of the industry. SANM outperforms 60.98% of its industry peers.
In the last couple of years the Operating Margin of SANM has grown nicely.
SANM has a Gross Margin of 8.65%. This is amonst the worse of the industry: SANM underperforms 82.93% of its industry peers.
SANM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.7% | ||
| PM (TTM) | 3.22% | ||
| GM | 8.65% |
OM growth 3Y4.33%
OM growth 5Y4.63%
PM growth 3Y-7.46%
PM growth 5Y11.26%
GM growth 3Y2.72%
GM growth 5Y3.31%
2. Health
2.1 Basic Checks
SANM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SANM has been reduced compared to 1 year ago.
The number of shares outstanding for SANM has been reduced compared to 5 years ago.
SANM has a better debt/assets ratio than last year.
2.2 Solvency
SANM has an Altman-Z score of 2.97. This is not the best score and indicates that SANM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.97, SANM is in line with its industry, outperforming 41.46% of the companies in the same industry.
The Debt to FCF ratio of SANM is 0.84, which is an excellent value as it means it would take SANM, only 0.84 years of fcf income to pay off all of its debts.
SANM's Debt to FCF ratio of 0.84 is amongst the best of the industry. SANM outperforms 82.11% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that SANM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.13, SANM is in line with its industry, outperforming 52.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.07
WACC9.14%
2.3 Liquidity
SANM has a Current Ratio of 1.91. This is a normal value and indicates that SANM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.91, SANM is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
A Quick Ratio of 1.21 indicates that SANM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, SANM is not doing good in the industry: 69.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
SANM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.25%, which is quite good.
SANM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.20% yearly.
SANM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.88%.
Measured over the past years, SANM shows a decrease in Revenue. The Revenue has been decreasing by -1.67% on average per year.
EPS 1Y (TTM)10.25%
EPS 3Y9.97%
EPS 5Y9.2%
EPS Q2Q%22.4%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y3.95%
Revenue growth 5Y-1.67%
Sales Q2Q%10.87%
3.2 Future
The Earnings Per Share is expected to grow by 15.57% on average over the next years. This is quite good.
SANM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.17% yearly.
EPS Next Y14.89%
EPS Next 2Y15.6%
EPS Next 3Y15.57%
EPS Next 5YN/A
Revenue Next Year7.73%
Revenue Next 2Y7.53%
Revenue Next 3Y7.17%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.90, the valuation of SANM can be described as rather expensive.
SANM's Price/Earnings ratio is a bit cheaper when compared to the industry. SANM is cheaper than 77.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.57, SANM is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.03, which indicates a rather expensive current valuation of SANM.
Based on the Price/Forward Earnings ratio, SANM is valued a bit cheaper than 78.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.09. SANM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 18.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SANM is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
SANM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SANM is cheaper than 86.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.63 | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SANM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SANM's earnings are expected to grow with 15.57% in the coming years.
PEG (NY)1.47
PEG (5Y)2.38
EPS Next 2Y15.6%
EPS Next 3Y15.57%
5. Dividend
5.1 Amount
SANM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
127.23
-2.47 (-1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.33%
Inst Owner Change-0.02%
Ins Owners3.16%
Ins Owner Change-0.17%
Market Cap6.78B
Revenue(TTM)8.05B
Net Income(TTM)259.21M
Analysts80
Price Target128.86 (1.28%)
Short Float %5.43%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.15%
Min EPS beat(2)0.41%
Max EPS beat(2)5.88%
EPS beat(4)4
Avg EPS beat(4)3.19%
Min EPS beat(4)0.41%
Max EPS beat(4)5.88%
EPS beat(8)6
Avg EPS beat(8)1.2%
EPS beat(12)9
Avg EPS beat(12)2.54%
EPS beat(16)12
Avg EPS beat(16)3.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)1.08%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)0%
PT rev (3m)14.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 18.03 | ||
| P/S | 0.84 | ||
| P/FCF | 18.63 | ||
| P/OCF | 14.32 | ||
| P/B | 2.96 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | 12.57 |
EPS(TTM)5.81
EY4.57%
EPS(NY)7.06
Fwd EY5.55%
FCF(TTM)6.83
FCFY5.37%
OCF(TTM)8.89
OCFY6.98%
SpS151.08
BVpS43.05
TBVpS43.05
PEG (NY)1.47
PEG (5Y)2.38
Graham Number75.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 11.3% | ||
| ROCE | 12.73% | ||
| ROIC | 9.82% | ||
| ROICexc | 13.42% | ||
| ROICexgc | 13.42% | ||
| OM | 4.7% | ||
| PM (TTM) | 3.22% | ||
| GM | 8.65% | ||
| FCFM | 4.52% |
ROA(3y)5.31%
ROA(5y)5.12%
ROE(3y)12.54%
ROE(5y)11.9%
ROIC(3y)11.14%
ROIC(5y)10.2%
ROICexc(3y)14.4%
ROICexc(5y)13.26%
ROICexgc(3y)14.4%
ROICexgc(5y)13.26%
ROCE(3y)14.44%
ROCE(5y)13.22%
ROICexgc growth 3Y0.47%
ROICexgc growth 5Y-1.86%
ROICexc growth 3Y0.47%
ROICexc growth 5Y-1.86%
OM growth 3Y4.33%
OM growth 5Y4.63%
PM growth 3Y-7.46%
PM growth 5Y11.26%
GM growth 3Y2.72%
GM growth 5Y3.31%
F-Score7
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 90.16% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 22.55 | ||
| Cash Conversion | 94.67% | ||
| Profit Quality | 140.4% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.97 |
F-Score7
WACC9.14%
ROIC/WACC1.07
Cap/Depr(3y)126.73%
Cap/Depr(5y)100.96%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.48%
Profit Quality(3y)65.72%
Profit Quality(5y)94.15%
High Growth Momentum
Growth
EPS 1Y (TTM)10.25%
EPS 3Y9.97%
EPS 5Y9.2%
EPS Q2Q%22.4%
EPS Next Y14.89%
EPS Next 2Y15.6%
EPS Next 3Y15.57%
EPS Next 5YN/A
Revenue 1Y (TTM)5.88%
Revenue growth 3Y3.95%
Revenue growth 5Y-1.67%
Sales Q2Q%10.87%
Revenue Next Year7.73%
Revenue Next 2Y7.53%
Revenue Next 3Y7.17%
Revenue Next 5YN/A
EBIT growth 1Y6.13%
EBIT growth 3Y8.46%
EBIT growth 5Y2.88%
EBIT Next Year44.94%
EBIT Next 3Y13.17%
EBIT Next 5YN/A
FCF growth 1Y837.98%
FCF growth 3Y-4.75%
FCF growth 5Y-1.61%
OCF growth 1Y97.11%
OCF growth 3Y0.19%
OCF growth 5Y-2.34%