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Can Sanmina Turn Its Modern Automotive Expertise Into Future Profits?
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Key Takeaways
Sanmina delivers advanced automotive electronics, from ECUs to LED lighting and climate modules.
The company supports EV growth with power management, battery subsystems and charging systems.
Partnerships with OEMs like Ather Energy enhance Sanmina's role in smart and connected vehicles.
Sanmina Corporation (SANM - Free Report) is a key provider in the automotive electronics sector, delivering advanced designs, manufacturing, testing and supply chain solutions to global original equipment manufacturers (OEMs) and top-level suppliers. Through its strong Electronics Manufacturing Services (EMS) capabilities, the company supports the increasing integration of advanced electronic systems in today’s modern vehicles.
Sanmina’s automotive electronics portfolio covers a wide range of systems and components, including engine control units (ECUs), body controllers, meter clusters, climate control modules, park-assist systems, LED lighting assemblies, and remote-control units that are essential for modern vehicle performance, safety, comfort and connectivity. It also manufactures key components for electric vehicles, such as power management systems and battery-related subsystems, helping the industry’s shift toward electrification.
Sanmina’s manufacturing facilities are certified per International Automotive Task Force 16949 standards. The company also offers advanced automotive technologies, including Advanced Driver Assistance Systems (ADAS), Light Detection and Ranging and sensor controls, along with infotainment and connectivity systems that combine navigation, communication and multimedia features.
The company has partnered with Ather Energy to develop and manufacture electronic components, such as charging systems, battery management systems and dashboards for the Ather S340 electric scooter. Per a report from Precedence Research, the global automotive electronics market is expected to reach nearly $647.43 billion by 2034 at a CAGR of 8.62%. With its broad expertise, innovation and industry partnerships, Sanmina is well-positioned to support the future growth of electric and smart vehicle technologies.
How Are Competitors Performing in the Automotive Industry?
The company faces stiff competition from Jabil, Inc. (JBL - Free Report) and Flex Ltd. (FLEX - Free Report) . Jabil is expanding its automotive manufacturing capabilities to support electric vehicle components, ADAS and connected vehicle technologies to help automakers scale next-generation production. The company partnered with AVL Software and Functions to design and manufacture next-generation vehicle electronics, including powertrain systems, charging technologies and sensor-based driver assistance systems for automakers.
Flex is growing its global automotive manufacturing footprint with new facilities and technologies, collaborating with OEMs on power electronics, converters and other advanced components for next-generation electric and autonomous vehicles. It also has a long-standing partnership with Rolling Wireless, building automotive 5G, V2X and Wi-Fi/Bluetooth modules, with the collaboration now extending to a second production site in Malaysia.
SANM's Price Performance, Valuation & Estimates
Sanmina shares have surged 62.7% compared with the industry’s growth of 71.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, the company’s shares currently trade at 13.45x forward 12-month earnings, lower than the industry tally of 22.97x.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have moved up 4.36% to $10.06 per share over the past 60 days, while the same for 2027 has increased 5.67% to $12.11.
View the Zacks #1 Rank List
Image: Bigstock
Can Sanmina Turn Its Modern Automotive Expertise Into Future Profits?
Key Takeaways
Sanmina Corporation (SANM - Free Report) is a key provider in the automotive electronics sector, delivering advanced designs, manufacturing, testing and supply chain solutions to global original equipment manufacturers (OEMs) and top-level suppliers. Through its strong Electronics Manufacturing Services (EMS) capabilities, the company supports the increasing integration of advanced electronic systems in today’s modern vehicles.
Sanmina’s automotive electronics portfolio covers a wide range of systems and components, including engine control units (ECUs), body controllers, meter clusters, climate control modules, park-assist systems, LED lighting assemblies, and remote-control units that are essential for modern vehicle performance, safety, comfort and connectivity. It also manufactures key components for electric vehicles, such as power management systems and battery-related subsystems, helping the industry’s shift toward electrification.
Sanmina’s manufacturing facilities are certified per International Automotive Task Force 16949 standards. The company also offers advanced automotive technologies, including Advanced Driver Assistance Systems (ADAS), Light Detection and Ranging and sensor controls, along with infotainment and connectivity systems that combine navigation, communication and multimedia features.
The company has partnered with Ather Energy to develop and manufacture electronic components, such as charging systems, battery management systems and dashboards for the Ather S340 electric scooter. Per a report from Precedence Research, the global automotive electronics market is expected to reach nearly $647.43 billion by 2034 at a CAGR of 8.62%. With its broad expertise, innovation and industry partnerships, Sanmina is well-positioned to support the future growth of electric and smart vehicle technologies.
How Are Competitors Performing in the Automotive Industry?
The company faces stiff competition from Jabil, Inc. (JBL - Free Report) and Flex Ltd. (FLEX - Free Report) . Jabil is expanding its automotive manufacturing capabilities to support electric vehicle components, ADAS and connected vehicle technologies to help automakers scale next-generation production. The company partnered with AVL Software and Functions to design and manufacture next-generation vehicle electronics, including powertrain systems, charging technologies and sensor-based driver assistance systems for automakers.
Flex is growing its global automotive manufacturing footprint with new facilities and technologies, collaborating with OEMs on power electronics, converters and other advanced components for next-generation electric and autonomous vehicles. It also has a long-standing partnership with Rolling Wireless, building automotive 5G, V2X and Wi-Fi/Bluetooth modules, with the collaboration now extending to a second production site in Malaysia.
SANM's Price Performance, Valuation & Estimates
Sanmina shares have surged 62.7% compared with the industry’s growth of 71.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, the company’s shares currently trade at 13.45x forward 12-month earnings, lower than the industry tally of 22.97x.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have moved up 4.36% to $10.06 per share over the past 60 days, while the same for 2027 has increased 5.67% to $12.11.
Image Source: Zacks Investment Research
Sanmina currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.