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Sanmina Corporation (SANM - Free Report) has gained 92.5% in the past year compared with the Electronic Manufacturing Services industry’s growth of 108.3%. It has outperformed the Zacks Computer & Technology sector and the S&P 500’s growth during this period.
Image Source: Zacks Investment Research
Among its competitors, the company has outperformed Jabil, Inc. (JBL - Free Report) but underperformed Celestica, Inc. (CLS - Free Report) . Celestica has surged 258.1%, while JBL has gained 56.8%.
SANM Rides on Portfolio Strength, Solid Demand Trends
Sanmina is benefiting from healthy demand in multiple end markets. Both Integrated Manufacturing Solutions and Components, Products and Services registered year-over-year sales growth in the fourth quarter. However, the primary growth drivers were Communications Networks, Cloud and AI Infrastructure, Medical, and Defense and Aerospace verticals. Sanmina’s diverse market presence strengthens its business resilience by mitigating risks associated with economic downturns in any single industry.
It offers end-to-end solutions that include product designing, manufacturing, assembling, testing, and aftermarket support. Such an end-to-end approach allows clients to rely on a single partner throughout the product lifecycle management. This allows the company to maintain a competitive edge against other major players in the industry, such as Celestica and Jabil.
Growing geopolitical volatility worldwide and tariff-related uncertainty are major concerns. Sanmina has been actively taking several initiatives to mitigate this uncertainty. Its manufacturing footprint has been aligned to match customers’ global production requirements. The company also has an extensive presence in the United States. Moreover, its vertically integrated manufacturing streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale.
Sanmina Gains From Strong Balance Sheet and Liquidity Position
As of Sept. 27, 2025, the company had $926.3 million in cash and cash equivalents and $282.3 million in long-term debt. In the September quarter, the company’s debt to capital ratio stood at 10.6% down from 11.8% a year ago and significantly lower than the industry’s average of 38%. In the fiscal fourth quarter, the times interest earned was 17.8. Higher times interest earned indicates the company is better equipped to cover interest expenses.
SANM’s current ratio (a measure of liquidity) stood at 1.72 at the end of the fourth quarter of fiscal 2024. A current ratio of more than 1 suggests the company is well-positioned to pay off its short-term debt obligations. Such a strong liquidity position will enable Sanmina to steadily invest in growth initiatives and capitalize on emerging market opportunities.
Estimate Revision Trend
Earnings estimates for Sanmina for 2025 have moved up 38.9% to $9.64 over the past 60 days, while the same for 2026 has increased 43.43% to $11.46. The upward estimate revision depicts bullish sentiments for the stock.
Image Source: Zacks Investment Research
Key Valuation Metric of SANM
From a valuation standpoint, SANM appears to be relatively cheaper than the industry and lower than its mean. Going by the price/earnings ratio, the company shares currently trade at 15.49 forward earnings, lower than 24.8 for the industry and lower than its mean of 16.94.
Image Source: Zacks Investment Research
End Note
Sanmina is benefiting from strong momentum in several verticals. Strength in communication, cloud and AI vertical is a tailwind. Comprehensive portfolio offerings cater to multiple verticals. Its dynamic manufacturing strategy is a major advantage. Upward estimate revision underscores growing investors’ optimism about the stock’s growth potential. Hence, with a Zacks Rank #1 (Strong Buy) and attractive valuation, Sanmina is expected to gain from emerging market dynamics. You can see the complete list of today’s Zacks #1 Rank stocks here.
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SANM Skyrockets 92.5% in a Year: Should You Buy the Stock?
Key Takeaways
Sanmina Corporation (SANM - Free Report) has gained 92.5% in the past year compared with the Electronic Manufacturing Services industry’s growth of 108.3%. It has outperformed the Zacks Computer & Technology sector and the S&P 500’s growth during this period.
Image Source: Zacks Investment Research
Among its competitors, the company has outperformed Jabil, Inc. (JBL - Free Report) but underperformed Celestica, Inc. (CLS - Free Report) . Celestica has surged 258.1%, while JBL has gained 56.8%.
SANM Rides on Portfolio Strength, Solid Demand Trends
Sanmina is benefiting from healthy demand in multiple end markets. Both Integrated Manufacturing Solutions and Components, Products and Services registered year-over-year sales growth in the fourth quarter. However, the primary growth drivers were Communications Networks, Cloud and AI Infrastructure, Medical, and Defense and Aerospace verticals. Sanmina’s diverse market presence strengthens its business resilience by mitigating risks associated with economic downturns in any single industry.
It offers end-to-end solutions that include product designing, manufacturing, assembling, testing, and aftermarket support. Such an end-to-end approach allows clients to rely on a single partner throughout the product lifecycle management. This allows the company to maintain a competitive edge against other major players in the industry, such as Celestica and Jabil.
Growing geopolitical volatility worldwide and tariff-related uncertainty are major concerns. Sanmina has been actively taking several initiatives to mitigate this uncertainty. Its manufacturing footprint has been aligned to match customers’ global production requirements. The company also has an extensive presence in the United States. Moreover, its vertically integrated manufacturing streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale.
Sanmina Gains From Strong Balance Sheet and Liquidity Position
As of Sept. 27, 2025, the company had $926.3 million in cash and cash equivalents and $282.3 million in long-term debt. In the September quarter, the company’s debt to capital ratio stood at 10.6% down from 11.8% a year ago and significantly lower than the industry’s average of 38%. In the fiscal fourth quarter, the times interest earned was 17.8. Higher times interest earned indicates the company is better equipped to cover interest expenses.
SANM’s current ratio (a measure of liquidity) stood at 1.72 at the end of the fourth quarter of fiscal 2024. A current ratio of more than 1 suggests the company is well-positioned to pay off its short-term debt obligations. Such a strong liquidity position will enable Sanmina to steadily invest in growth initiatives and capitalize on emerging market opportunities.
Estimate Revision Trend
Earnings estimates for Sanmina for 2025 have moved up 38.9% to $9.64 over the past 60 days, while the same for 2026 has increased 43.43% to $11.46. The upward estimate revision depicts bullish sentiments for the stock.
Image Source: Zacks Investment Research
Key Valuation Metric of SANM
From a valuation standpoint, SANM appears to be relatively cheaper than the industry and lower than its mean. Going by the price/earnings ratio, the company shares currently trade at 15.49 forward earnings, lower than 24.8 for the industry and lower than its mean of 16.94.
Image Source: Zacks Investment Research
End Note
Sanmina is benefiting from strong momentum in several verticals. Strength in communication, cloud and AI vertical is a tailwind. Comprehensive portfolio offerings cater to multiple verticals. Its dynamic manufacturing strategy is a major advantage. Upward estimate revision underscores growing investors’ optimism about the stock’s growth potential. Hence, with a Zacks Rank #1 (Strong Buy) and attractive valuation, Sanmina is expected to gain from emerging market dynamics. You can see the complete list of today’s Zacks #1 Rank stocks here.