SANMINA CORP (SANM) Stock Fundamental Analysis
NASDAQ:SANM - Nasdaq - US8010561020 - Common Stock - Currency: USD
Taking everything into account, SANM scores 6 out of 10 in our fundamental rating. SANM was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. While SANM has a great profitability rating, there are some minor concerns on its financial health. SANM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make SANM suitable 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.
In the past 5 years SANM has always been profitable.
SANM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SANM has a better Return On Assets (4.88%) than 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 83.20% 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 9.35%.
| 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 better Profit Margin (3.09%) than 65.60% of its industry peers.
SANM's Profit Margin has improved in the last couple of years.
SANM has a better Operating Margin (4.58%) than 60.80% of its industry peers.
In the last couple of years the Operating Margin of SANM has grown nicely.
SANM has a Gross Margin of 8.52%. This is amonst the worse of the industry: SANM underperforms 82.40% of its industry peers.
SANM's Gross Margin has improved in the last couple of years.
| 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.
Compared to 5 years ago, SANM has less shares outstanding
Compared to 1 year ago, SANM has an improved debt to assets ratio.
2.2 Solvency
SANM has an Altman-Z score of 2.58. 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 worse Altman-Z score (2.58) than 65.60% of its industry peers.
SANM has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
SANM's Debt to FCF ratio of 1.15 is amongst the best of the industry. SANM outperforms 81.60% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that SANM is not too dependend on debt financing.
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 | 2.58 |
ROIC/WACC1.08
WACC8.86%
2.3 Liquidity
SANM has a Current Ratio of 1.96. This is a normal value and indicates that SANM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.96, SANM is doing worse than 63.20% of the companies in the same industry.
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 Quick ratio of 1.22. This is in the lower half of the industry: SANM underperforms 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%.
The Earnings Per Share has been growing by 9.20% on average over the past years. This is quite good.
SANM shows a decrease in Revenue. In the last year, the revenue decreased by -1.50%.
The Revenue has been decreasing by -1.67% on average over the past years.
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
SANM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.89% yearly.
The Revenue is expected to grow by 7.67% on average over the next years.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.61 indicates a correct valuation of SANM.
SANM's Price/Earnings ratio is rather cheap when compared to the industry. SANM is cheaper than 86.40% of the companies in the same industry.
SANM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 12.17, which indicates a correct valuation of SANM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SANM indicates a rather cheap valuation: SANM is cheaper than 88.80% 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 (22.13), we can say SANM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
88.00% of the companies in the same industry are more expensive than SANM, based on the Enterprise Value to EBITDA ratio.
SANM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SANM is cheaper than 83.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.25 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
SANM's 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.
SANM's earnings are expected to grow with 15.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)1.7
EPS Next 2Y15.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SANM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.33
-1.12 (-1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.04%
Inst Owner Change-0.72%
Ins Owners3.15%
Ins Owner Change-2.44%
Market Cap4.62B
Analysts80
Price Target98.6 (14.21%)
Short Float %2.97%
Short Ratio3.47
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)8.61%
PT rev (3m)4.69%
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 | 15.61 | ||
| Fwd PE | 12.17 | ||
| P/S | 0.59 | ||
| P/FCF | 17.25 | ||
| P/OCF | 12.73 | ||
| P/B | 2.08 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)5.53
EY6.41%
EPS(NY)7.09
Fwd EY8.21%
FCF(TTM)5
FCFY5.8%
OCF(TTM)6.78
OCFY7.86%
SpS146.83
BVpS41.5
TBVpS41.5
PEG (NY)1.14
PEG (5Y)1.7
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 | 2.58 |
F-Score6
WACC8.86%
ROIC/WACC1.08
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%