# Sanmina (SANM.US)

Canonical: https://gigainvestors.com/s/SANM

Analysis as of: 2026-10-16T07:31:45.932Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $188.74 per share; close as of 2026-10-15.

Estimated value: low $110.53 per share, central $122.27 per share, high $137.25 per share. Buy at or below the central value $122.27 per share. Valuation as of 2026-10-16T07:31:45.932Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.28×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.03×

- FY2018: 0.02×

- FY2019: 0.02×

- FY2020: 0.03×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.05×

- FY2024: 0.04×

- FY2025: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.8%

- ROIC, second-lowest year: 7.5%

- Typical minus recent gross margin: -0.6 pp

- Typical gross margin (annual median): 7.8%

- Recent gross margin (lower of latest and 3-year median): 8.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 11.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.8%

- FY2017: 8.9%

- FY2018: 4.8%

- FY2019: 7.5%

- FY2020: 9.8%

- FY2021: 14.0%

- FY2022: 16.3%

- FY2023: 18.8%

- FY2024: 12.8%

- FY2025: 15.6%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.3B

- Net income, five-year total: $1.3B

- Return on incremental invested capital: 5.1%

- Working capital / revenue, annual change: 1.4 pp

- Working capital / revenue, change between three-year averages: 9.4 pp

- Working capital / revenue, final three-year average: 22.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.15×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.05×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.9% vs 15.6%

- Per-share earnings: 2.38 to 4.46 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -4.3%

- Ordinary dilution, 5-year annual growth: -4.9%

- Market cap gain: $3.5B

- Cumulative retained earnings: $1.5B

- Diluted shares, 10-year annual growth: -4.3%

- Diluted shares, 5-year annual growth: -4.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.1%

- Per-share value change: $2.07

- Per-share value, starting three-year median: $2.38

- Per-share value, ending three-year median: $4.46

- Buybacks concentrated in cheaper years (correlation): 0.00

- Average buyback yield: 5.9%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $80M

- Cumulative net income, 10 years: $1.8B

- ROIC, first three-year median: 8.9%

- ROIC, last three-year median: 15.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.38

- FY2017: $1.78

- FY2018: -$1.37

- FY2019: $1.97

- FY2020: $1.88

- FY2021: $3.72

- FY2022: $3.81

- FY2023: $5.18

- FY2024: $3.91

- FY2025: $4.46

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -6.4%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 3

- Stock compensation / operating cash flow: 10.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.52×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.6%

- FY2017: -2.9%

- FY2018: -6.2%

- FY2019: -6.2%

- FY2020: -4.4%

- FY2021: -2.1%

- FY2022: -1.9%

- FY2023: 1.5%

- FY2024: -2.4%

- FY2025: -6.4%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 27% since May 2026 · "Management highlighted stronger demand, new customer wins and progress in integrating ZT Systems." (finance.yahoo.com, Jul 2026) · sales +7.4%

Story as of 2026-10-16T09:59:32.867Z; price observation 2026-10-15.

Price needs cash profits to grow 7.8% a year for ten years

- 2025-05-12: SANM Q1 Earnings Call: Solid Revenue Growth, Cautious Outlook Amid Tariff Uncertainty ([finance.yahoo.com](https://finance.yahoo.com/news/sanm-q1-earnings-call-solid-125811919.html))

- 2025-07-29: Sanmina targets 6%–8% revenue growth for FY25 while advancing $5B–$6B ZT Systems acquisition ([seekingalpha.com](https://seekingalpha.com/news/4473046-sanmina-targets-6-percent-8-percent-revenue-growth-for-fy25-while-advancing-5b-6b-zt-systems?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-04: SANM Q3 Deep Dive: Cloud and AI Acquisition Drives Revenue Upside, Eyes on Integration ([finance.yahoo.com](https://finance.yahoo.com/news/sanm-q3-deep-dive-cloud-134624582.html))

- 2026-02-03: Sanmina Revenue Beats Forecasts As AI And ZT Systems Drive Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/sanmina-revenue-beats-forecasts-ai-080917149.html))

- 2026-04-28: SANM Q2 Deep Dive: ZT Systems Integration and AI Demand Propel Sanmina’s Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sanm-q2-deep-dive-zt-223655599.html))

- 2026-07-28: SANM Q2 Deep Dive: AI Demand and Integration Drive Growth, Guidance Signals Mixed Outlook ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/sanm-q2-deep-dive-ai-190102804.html))

### Sales · FY2024–2025

sales +7.4%; source https://www.sec.gov/Archives/edgar/data/897723/000089772325000042/sanm-20250927.htm; observed 2025-11-13.

- FY2016: $6.5B 

- FY2017: $6.9B 

- FY2018: $7.1B 

- FY2019: $8.2B 

- FY2020: $7.0B 

- FY2021: $6.7B 

- FY2022: $7.9B 

- FY2023: $8.9B 

- FY2024: $7.6B 

- FY2025: $8.1B 

### Gross margin · FY2025

gross margin 8.8%; source https://www.sec.gov/Archives/edgar/data/897723/000089772325000042/sanm-20250927.htm; observed 2025-11-13.

- FY2016: 7.9% 

- FY2017: 7.6% 

- FY2018: 6.5% 

- FY2019: 7.2% 

- FY2020: 7.4% 

- FY2021: 7.8% 

- FY2022: 7.9% 

- FY2023: 8.3% 

- FY2024: 8.5% 

- FY2025: 8.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic components; annual sales are USD 8.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/897723/000089772325000042/sanm-20250927.htm (filed 2025-11-13); FY2025: revenue 8128382000; grossProfit 716357000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SANM.US: Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company operates through two businesses: Integrated Manufacturing Solutions; and Components, Products and Services. The company offers product design and engineering, including concept development, detailed design, prototyping, validation, preproduction, manufacturing design release, and product industrialization; assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services, as well as engaging in the manufacture of components, subassemblies, and complete systems; and direct order fulfilment and logistics services. In addition, the company provides components, such as printed circuit boards, backplane fabrication and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts, and plastic injected molded parts; memory solutions; storage platforms; optical, radio frequency, and microelectronic solutions; defense and aerospace products, design, manufacturing, repair, and refurbishment services; and cloud-based manufacturing execution software. It offers its products and services primarily to original equipment manufacturers in the industrial, medical, defense and aerospace, automotive, communications networks, and cloud infrastructure industries. The company was formerly known as Sanmina-SCI Corp. Sanmina Corporation was incorporated in 1980 and is headquartered in San Jose, California.

### Why customers stay

Margins ranged from 8.3% to 8.8% during 2023–25; it earns 12.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2023: grossProfit / revenue = 8.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2024: grossProfit / revenue = 8.5%.

- Source: https://www.sec.gov/Archives/edgar/data/897723/000089772325000042/sanm-20250927.htm (filed 2025-11-13); FY2025: grossProfit / revenue = 8.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); 10-year return on capital observations [[2016,0.1277830108187179],[2017,0.08862824310757379],[2018,0.04755786793852494],[2019,0.07476526908194202],[2020,0.09788496931504745],[2021,0.1404385055223204],[2022,0.16329866491556144],[2023,0.18802613740013882],[2024,0.1284987665856442],[2025,0.15608724109755193]]; median 0.12814088870218104. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 8% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/897723/000089772325000042/sanm-20250927.htm (filed 2025-11-13); Gross margin observations: [[2021,0.0781260295537962],[2022,0.07856511333495463],[2023,0.0831792957351768]]; range within 2 percentage points.

### Where the cash goes

Spends 11.3% of cash earnings on expansion; earns 5.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2016: growth capex 8490000; upkeep 111910000; cash acquisitions 58878000; owner earnings 187838000. Growth capex plus acquisitions / owner earnings = 0.35864947454721624.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2017: growth capex 0; upkeep 111833000; cash acquisitions 0; owner earnings 145751000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2019: growth capex 17725000; upkeep 116949000; cash acquisitions 0; owner earnings 141515000. Growth capex plus acquisitions / owner earnings = 0.1252517400982228.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2020: growth capex 0; upkeep 64409000; cash acquisitions 0; owner earnings 182978000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2021: growth capex 0; upkeep 72212000; cash acquisitions 21408000; owner earnings 286990000. Growth capex plus acquisitions / owner earnings = 0.07459493362138053.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2022: growth capex 29856000; upkeep 108783000; cash acquisitions 0; owner earnings 240384000. Growth capex plus acquisitions / owner earnings = 0.12420127795527157.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2023: growth capex 73130000; upkeep 118237000; cash acquisitions 0; owner earnings 309970000. Growth capex plus acquisitions / owner earnings = 0.2359260573603897.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); FY2024: growth capex 0; upkeep 111227000; owner earnings 233727000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/897723/000089772325000042/sanm-20250927.htm (filed 2025-11-13); FY2025: growth capex 27891000; upkeep 119466000; owner earnings 245893000. Growth capex / owner earnings = 0.11342738508212923.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); Incremental return on capital 0.05114628262904229, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); Dividend observations: [[2016,0],[2017,932770000],[2018,4040600000],[2019,4259325000],[2020,0],[2021,396607000],[2022,0],[2023,3412000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/897723/000089772325000042/sanm-20250927.htm (filed 2025-11-13); FY2025: cash repurchases 113797000 USD.

### Are managers owners

Insiders own 5.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SANM.US SharesStats.PercentInsiders = 5.285 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.8% yearly over ten years; actual growth was 0.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-13); Ten-year compound average after fade. Initial solved rate 0.099619469299118. Price 188.74; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.3589611057075 → FY2025 4.456359418608866. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $27.65 per share

- 2016-11: $32.85 per share

- 2016-12: $36.65 per share

- 2017-01: $38.95 per share

- 2017-02: $39.00 per share

- 2017-03: $40.60 per share

- 2017-04: $37.25 per share

- 2017-05: $36.60 per share

- 2017-06: $38.10 per share

- 2017-07: $35.85 per share

- 2017-08: $37.45 per share

- 2017-09: $37.15 per share

- 2017-10: $32.73 per share

- 2017-11: $34.00 per share

- 2017-12: $33.00 per share

- 2018-01: $26.15 per share

- 2018-02: $27.55 per share

- 2018-03: $26.15 per share

- 2018-04: $29.50 per share

- 2018-05: $28.80 per share

- 2018-06: $29.30 per share

- 2018-07: $29.10 per share

- 2018-08: $30.80 per share

- 2018-09: $27.60 per share

- 2018-10: $25.30 per share

- 2018-11: $27.04 per share

- 2018-12: $24.06 per share

- 2019-01: $31.22 per share

- 2019-02: $31.94 per share

- 2019-03: $28.85 per share

- 2019-04: $33.92 per share

- 2019-05: $26.59 per share

- 2019-06: $30.28 per share

- 2019-07: $31.75 per share

- 2019-08: $28.90 per share

- 2019-09: $32.11 per share

- 2019-10: $30.73 per share

- 2019-11: $31.81 per share

- 2019-12: $34.24 per share

- 2020-01: $31.84 per share

- 2020-02: $26.29 per share

- 2020-03: $27.28 per share

- 2020-04: $27.73 per share

- 2020-05: $26.61 per share

- 2020-06: $25.04 per share

- 2020-07: $29.68 per share

- 2020-08: $28.30 per share

- 2020-09: $27.05 per share

- 2020-10: $24.44 per share

- 2020-11: $31.82 per share

- 2020-12: $31.89 per share

- 2021-01: $31.10 per share

- 2021-02: $35.62 per share

- 2021-03: $41.38 per share

- 2021-04: $40.84 per share

- 2021-05: $42.11 per share

- 2021-06: $38.96 per share

- 2021-07: $38.42 per share

- 2021-08: $39.48 per share

- 2021-09: $38.54 per share

- 2021-10: $37.75 per share

- 2021-11: $36.54 per share

- 2021-12: $41.46 per share

- 2022-01: $37.82 per share

- 2022-02: $39.78 per share

- 2022-03: $40.42 per share

- 2022-04: $40.89 per share

- 2022-05: $43.89 per share

- 2022-06: $40.73 per share

- 2022-07: $46.05 per share

- 2022-08: $48.52 per share

- 2022-09: $46.08 per share

- 2022-10: $56.05 per share

- 2022-11: $66.09 per share

- 2022-12: $57.29 per share

- 2023-01: $60.93 per share

- 2023-02: $60.46 per share

- 2023-03: $60.99 per share

- 2023-04: $52.26 per share

- 2023-05: $53.04 per share

- 2023-06: $60.27 per share

- 2023-07: $61.46 per share

- 2023-08: $55.70 per share

- 2023-09: $54.28 per share

- 2023-10: $50.87 per share

- 2023-11: $50.11 per share

- 2023-12: $51.37 per share

- 2024-01: $59.82 per share

- 2024-02: $63.20 per share

- 2024-03: $62.18 per share

- 2024-04: $60.67 per share

- 2024-05: $68.54 per share

- 2024-06: $66.25 per share

- 2024-07: $75.33 per share

- 2024-08: $69.38 per share

- 2024-09: $68.45 per share

- 2024-10: $70.10 per share

- 2024-11: $79.41 per share

- 2024-12: $75.67 per share

- 2025-01: $83.73 per share

- 2025-02: $81.92 per share

- 2025-03: $76.18 per share

- 2025-04: $76.79 per share

- 2025-05: $84.69 per share

- 2025-06: $97.83 per share

- 2025-07: $116.04 per share

- 2025-08: $117.52 per share

- 2025-09: $115.11 per share

- 2025-10: $137.05 per share

- 2025-11: $156.17 per share

- 2025-12: $150.07 per share

- 2026-01: $141.68 per share

- 2026-02: $155.26 per share

- 2026-03: $129.64 per share

- 2026-04: $217.82 per share

- 2026-05: $259.73 per share

- 2026-06: $253.08 per share

- 2026-07: $185.56 per share

- 2026-08: $196.72 per share

- 2026-09: $214.91 per share

- 2026-10: $188.74 per share

## Annual estimated value (USD per share)

- FY2016: low $33.08 per share, central $37.17 per share, high $42.62 per share

- FY2017: low $31.30 per share, central $35.14 per share, high $40.25 per share

- FY2018: low $36.93 per share, central $42.34 per share, high $48.58 per share

- FY2019: low $34.70 per share, central $44.44 per share, high $51.32 per share

- FY2020: low $27.60 per share, central $30.73 per share, high $34.91 per share

- FY2021: low $30.98 per share, central $34.19 per share, high $38.47 per share

- FY2022: low $41.99 per share, central $46.97 per share, high $53.60 per share

- FY2023: low $68.74 per share, central $93.14 per share, high $107.90 per share

- FY2024: low $56.41 per share, central $67.20 per share, high $76.97 per share

- FY2025: low $64.59 per share, central $71.85 per share, high $81.12 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:31.078Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/897723/000089772325000042/sanm-20250927.htm); period 2025-09-27, filed 2025-11-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.