SANMINA CORP (SANM) Stock Fundamental Analysis
NASDAQ:SANM - Nasdaq - US8010561020 - Common Stock - Currency: USD
SANM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SANM had positive earnings in the past year.
SANM had a positive operating cash flow in the past year.
In the past 5 years SANM has always been profitable.
Each year in the past 5 years SANM had a positive operating cash flow.
1.2 Ratios
SANM has a Return On Assets of 4.88%. This is in the better half of the industry: SANM outperforms 72.80% of its industry peers.
SANM has a Return On Equity of 10.92%. This is in the better half of the industry: SANM outperforms 77.60% of its industry peers.
SANM has a better Return On Invested Capital (9.58%) than 84.00% of its industry peers.
SANM had an Average Return On Invested Capital over the past 3 years of 11.14%. This is in line with the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 10.92% | ||
| ROIC | 9.58% |
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 has a Profit Margin of 3.09%. This is in the better half of the industry: SANM outperforms 65.60% of its industry peers.
SANM's Profit Margin has improved in the last couple of years.
SANM's Operating Margin of 4.58% is fine compared to the rest of the industry. SANM outperforms 61.60% of its industry peers.
SANM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 8.52%, SANM is doing worse than 82.40% of the companies in the same industry.
In the last couple of years the Gross Margin of SANM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.58% | ||
| PM (TTM) | 3.09% | ||
| GM | 8.52% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SANM is creating some value.
SANM has less shares outstanding than it did 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 2.79. 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's Altman-Z score of 2.79 is on the low side compared to the rest of the industry. SANM is outperformed by 64.00% of its industry peers.
The Debt to FCF ratio of SANM is 1.15, which is an excellent value as it means it would take SANM, only 1.15 years of fcf income to pay off all of its debts.
SANM has a better Debt to FCF ratio (1.15) than 81.60% of its industry peers.
SANM has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SANM (0.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 2.79 |
ROIC/WACC1
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.96 indicates that SANM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.96, SANM is not doing good in the industry: 63.20% of the companies in the same industry are doing better.
SANM has a Quick Ratio of 1.22. 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 (1.22) than 69.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
SANM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.72%.
Measured over the past years, SANM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.20% on average per year.
The Revenue has decreased by -1.50% in the past year.
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)-0.72%
EPS 3Y9.97%
EPS 5Y9.2%
EPS Q2Q%8.46%
Revenue 1Y (TTM)-1.5%
Revenue growth 3Y3.95%
Revenue growth 5Y-1.67%
Sales Q2Q%8.15%
3.2 Future
Based on estimates for the next years, SANM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.89% on average per year.
SANM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.67% yearly.
EPS Next Y13.69%
EPS Next 2Y15.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.9%
Revenue Next 2Y7.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 18.92, SANM is valued on the expensive side.
Based on the Price/Earnings ratio, SANM is valued cheaply inside the industry as 80.80% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.48, SANM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.75, the valuation of SANM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SANM indicates a rather cheap valuation: SANM is cheaper than 85.60% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SANM to the average of the S&P500 Index (36.52), we can say SANM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 14.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SANM indicates a rather cheap valuation: SANM is cheaper than 84.00% of the companies listed in the same industry.
76.80% of the companies in the same industry are more expensive than SANM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.91 | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SANM may justify a higher PE ratio.
SANM's earnings are expected to grow with 15.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)2.06
EPS Next 2Y15.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SANM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
104.61
+0.44 (+0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.04%
Inst Owner Change0%
Ins Owners3.15%
Ins Owner Change-2%
Market Cap5.59B
Analysts80
Price Target102 (-2.49%)
Short Float %3.97%
Short Ratio4.44
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)1.98%
Min EPS beat(2)0.41%
Max EPS beat(2)3.55%
EPS beat(4)3
Avg EPS beat(4)0.65%
Min EPS beat(4)-4.26%
Max EPS beat(4)3.55%
EPS beat(8)5
Avg EPS beat(8)0.34%
EPS beat(12)9
Avg EPS beat(12)3.25%
EPS beat(16)12
Avg EPS beat(16)3.84%
Revenue beat(2)0
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.08%
Revenue beat(8)1
Avg Revenue beat(8)-2.34%
Revenue beat(12)5
Avg Revenue beat(12)0.31%
Revenue beat(16)7
Avg Revenue beat(16)0.15%
PT rev (1m)3.45%
PT rev (3m)8.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 14.75 | ||
| P/S | 0.71 | ||
| P/FCF | 20.91 | ||
| P/OCF | 15.42 | ||
| P/B | 2.52 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 10.88 |
EPS(TTM)5.53
EY5.29%
EPS(NY)7.09
Fwd EY6.78%
FCF(TTM)5
FCFY4.78%
OCF(TTM)6.78
OCFY6.48%
SpS146.83
BVpS41.5
TBVpS41.5
PEG (NY)1.38
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 10.92% | ||
| ROCE | 12.42% | ||
| ROIC | 9.58% | ||
| ROICexc | 12.34% | ||
| ROICexgc | 12.34% | ||
| OM | 4.58% | ||
| PM (TTM) | 3.09% | ||
| GM | 8.52% | ||
| FCFM | 3.41% |
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%
ROICexcg growth 3Y0.47%
ROICexcg 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-Score6
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 78.37% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 18.36 | ||
| Cash Conversion | 75.42% | ||
| Profit Quality | 110.44% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.79 |
F-Score6
WACC9.58%
ROIC/WACC1
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)-0.72%
EPS 3Y9.97%
EPS 5Y9.2%
EPS Q2Q%8.46%
EPS Next Y13.69%
EPS Next 2Y15.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.5%
Revenue growth 3Y3.95%
Revenue growth 5Y-1.67%
Sales Q2Q%8.15%
Revenue Next Year7.9%
Revenue Next 2Y7.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.5%
EBIT growth 3Y8.46%
EBIT growth 5Y2.88%
EBIT Next Year45.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y171.55%
FCF growth 3Y-4.75%
FCF growth 5Y-1.61%
OCF growth 1Y27.07%
OCF growth 3Y0.19%
OCF growth 5Y-2.34%