SANMINA CORP (SANM) Stock Fundamental Analysis
NASDAQ:SANM - Nasdaq - US8010561020 - Common Stock - Currency: USD
SANM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SANM could be worth investigating further for value investing!.
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.
SANM had positive earnings in each of the past 5 years.
Each year in the past 5 years SANM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SANM (4.88%) is better than 74.40% of its industry peers.
SANM's Return On Equity of 10.92% is fine compared to the rest of the industry. SANM outperforms 78.40% of its industry peers.
SANM has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. SANM outperforms 83.20% 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 9.28%.
| 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
The Profit Margin of SANM (3.09%) is better than 64.80% of its industry peers.
In the last couple of years the Profit Margin of SANM has grown nicely.
With a decent Operating Margin value of 4.58%, SANM is doing good in the industry, outperforming 63.20% of the companies in the same industry.
SANM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 8.52%, SANM is not doing good in the industry: 81.60% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SANM is still creating some value.
Compared to 1 year ago, SANM has less shares outstanding
SANM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SANM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.56 indicates that SANM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SANM has a Altman-Z score of 2.56. This is in the lower half of the industry: SANM underperforms 62.40% 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 82.40% 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 | 2.56 |
ROIC/WACC1.02
WACC9.41%
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.
SANM's Current ratio of 1.96 is in line compared to the rest of the industry. SANM outperforms 40.80% of its industry peers.
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
The earnings per share for SANM have decreased by -0.72% in the last year.
SANM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.20% yearly.
Looking at the last year, SANM shows a decrease in Revenue. The Revenue has decreased by -1.50% in the last year.
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
The Earnings Per Share is expected to grow by 15.89% on average over the next years. This is quite good.
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
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
The Price/Earnings ratio is 15.23, which indicates a correct valuation of SANM.
SANM's Price/Earnings ratio is rather cheap when compared to the industry. SANM is cheaper than 84.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of SANM to the average of the S&P500 Index (25.82), we can say SANM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.87, the valuation of SANM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SANM is valued cheaper than 87.20% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SANM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SANM is valued cheaply inside the industry as 89.60% 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 80.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 8.66 |
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)1.11
PEG (5Y)1.65
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 |
84.2
-0.25 (-0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change-0.72%
Ins Owners3.09%
Ins Owner Change-2.44%
Market Cap4.50B
Analysts80
Price Target90.78 (7.81%)
Short Float %2.98%
Short Ratio3.84
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)-3.61%
PT rev (3m)-3.61%
EPS NQ rev (1m)-7.41%
EPS NQ rev (3m)-7.41%
EPS NY rev (1m)-2.08%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)-3.81%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 11.87 | ||
| P/S | 0.57 | ||
| P/FCF | 16.83 | ||
| P/OCF | 12.41 | ||
| P/B | 2.03 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 8.66 |
EPS(TTM)5.53
EY6.57%
EPS(NY)7.09
Fwd EY8.42%
FCF(TTM)5
FCFY5.94%
OCF(TTM)6.78
OCFY8.06%
SpS146.83
BVpS41.5
TBVpS41.5
PEG (NY)1.11
PEG (5Y)1.65
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 | 2.56 |
F-Score6
WACC9.41%
ROIC/WACC1.02
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%