SANMINA CORP (SANM)
US8010561020 - Common Stock
Taking everything into account, SANM scores 5 out of 10 in our fundamental rating. SANM was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. While SANM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SANM has a bad growth rate and is valued cheaply. These ratings could make SANM a good candidate for value investing.
1. Profitability
1.1 Basic Checks
SANM had positive earnings in the past year.
In the past year SANM had a positive cash flow from operations.
Each year in the past 5 years SANM has been profitable.
SANM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SANM has a Return On Assets of 5.29%. This is in the better half of the industry: SANM outperforms 73.60% of its industry peers.
Looking at the Return On Equity, with a value of 11.41%, SANM is in the better half of the industry, outperforming 78.40% of the companies in the same industry.
The Return On Invested Capital of SANM (10.64%) is better than 79.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SANM is in line with the industry average of 9.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 11.41% | ||
| ROIC | 10.64% |
ROA(3y)5.76%
ROA(5y)4.92%
ROE(3y)13.6%
ROE(5y)11.61%
ROIC(3y)11.23%
ROIC(5y)10.73%
1.3 Margins
SANM's Profit Margin of 3.11% is fine compared to the rest of the industry. SANM outperforms 63.20% of its industry peers.
SANM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 4.77%, SANM is doing good in the industry, outperforming 62.40% of the companies in the same industry.
In the last couple of years the Operating Margin of SANM has grown nicely.
Looking at the Gross Margin, with a value of 8.44%, SANM is doing worse than 83.20% of the companies in the same industry.
SANM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.77% | ||
| PM (TTM) | 3.11% | ||
| GM | 8.44% |
OM growth 3Y11.02%
OM growth 5Y15.48%
PM growth 3Y19.93%
PM growth 5YN/A
GM growth 3Y3.24%
GM growth 5Y4.97%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SANM is creating some value.
Compared to 1 year ago, SANM has less shares outstanding
SANM has less shares outstanding than it did 5 years ago.
SANM has a better debt/assets ratio than last year.
2.2 Solvency
SANM has an Altman-Z score of 2.42. 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.
SANM has a Altman-Z score of 2.42. This is comparable to the rest of the industry: SANM outperforms 44.00% of its industry peers.
SANM has a debt to FCF ratio of 1.81. This is a very positive value and a sign of high solvency as it would only need 1.81 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.81, SANM is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that SANM is not too dependend on debt financing.
SANM has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: SANM outperforms 53.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.14
WACC9.34%
2.3 Liquidity
A Current Ratio of 2.00 indicates that SANM has no problem at all paying its short term obligations.
SANM has a Current ratio of 2.00. This is in the lower half of the industry: SANM underperforms 60.80% of its industry peers.
SANM has a Quick Ratio of 1.25. This is a normal value and indicates that SANM is financially healthy and should not expect problems in meeting its short term obligations.
SANM has a worse Quick ratio (1.25) than 69.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for SANM have decreased by -7.63% in the last year.
Measured over the past years, SANM shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.03% on average per year.
Looking at the last year, SANM shows a very negative growth in Revenue. The Revenue has decreased by -10.71% in the last year.
The Revenue has been growing slightly by 4.68% on average over the past years.
EPS 1Y (TTM)-7.63%
EPS 3Y26.4%
EPS 5Y23.03%
EPS growth Q2Q-18.24%
Revenue 1Y (TTM)-10.71%
Revenue growth 3Y8.68%
Revenue growth 5Y4.68%
Revenue growth Q2Q-20.93%
3.2 Future
SANM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.87% yearly.
Based on estimates for the next years, SANM will show a decrease in Revenue. The Revenue will decrease by -1.43% on average per year.
EPS Next Y-10.57%
EPS Next 2Y2.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.04%
Revenue Next 2Y-1.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.09, the valuation of SANM can be described as very reasonable.
SANM's Price/Earnings ratio is rather cheap when compared to the industry. SANM is cheaper than 88.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, SANM is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.41, the valuation of SANM can be described as very reasonable.
93.60% of the companies in the same industry are more expensive than SANM, based on the Price/Forward Earnings ratio.
SANM is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
SANM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SANM is cheaper than 92.00% of the companies in the same industry.
SANM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SANM is cheaper than 74.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.41 | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
The decent profitability rating of SANM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y2.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SANM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SANMINA CORP
NASDAQ:SANM (5/3/2024, 7:17:07 PM)
After market: 61.76 0 (0%)61.76
+0.27 (+0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 9.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 11.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.77% | ||
| PM (TTM) | 3.11% | ||
| GM | 8.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.63%
EPS 3Y26.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.71%
Revenue growth 3Y8.68%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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