| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 96.30 | -8 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 59.53 | -43 |
| Graham Formula | n/a |
Sanmina Corporation (NASDAQ: SANM) is a global leader in integrated manufacturing solutions, serving original equipment manufacturers (OEMs) across industries such as industrial, medical, defense and aerospace, automotive, communications networks, and cloud solutions. Founded in 1980 and headquartered in San Jose, California, Sanmina specializes in end-to-end product lifecycle services, including design, engineering, prototyping, manufacturing, supply chain management, and after-market support. The company operates through two core segments: Integrated Manufacturing Solutions and Components, Products & Services. Sanmina’s expertise in printed circuit boards, interconnect systems, mechanical enclosures, and microelectronics positions it as a critical partner for OEMs requiring high-mix, low-to-medium volume production with precision and scalability. With a strong focus on innovation and operational efficiency, Sanmina plays a pivotal role in the technology hardware and equipment sector, supporting next-generation advancements in 5G, IoT, and cloud infrastructure.
Sanmina Corporation presents a mixed investment profile. On the positive side, the company maintains a diversified revenue base across high-growth sectors like aerospace, medical, and cloud solutions, reducing cyclical risks. Its strong cash position ($625.9M) and manageable debt ($317.3M) provide financial flexibility. However, the company operates in a highly competitive, low-margin industry, reflected in its modest net income ($222.5M on $7.57B revenue) and lack of dividends. The beta of 1.106 suggests moderate volatility relative to the market. Investors may be attracted to Sanmina’s exposure to secular trends like defense spending and 5G infrastructure but should weigh this against macroeconomic sensitivity and supply chain risks inherent in contract manufacturing.
Sanmina’s competitive advantage lies in its vertically integrated manufacturing capabilities and expertise in complex, low-to-medium volume production runs. Unlike pure-play EMS providers, Sanmina’s Components, Products & Services segment allows it to capture higher-margin opportunities in specialized interconnect systems and microelectronics. The company’s focus on defense/aerospace and medical markets—where certifications and long product lifecycles create barriers to entry—provides stability. However, Sanmina faces intense competition from larger EMS players like Flex and Jabil, which benefit from greater scale and global reach. While Sanmina’s asset-light model enhances agility, it may lack the pricing power of vertically integrated peers. Its cloud-based manufacturing execution software differentiates its service offerings but competes with enterprise solutions from Siemens and PTC. The company’s ability to maintain relationships with blue-chip OEMs (undisclosed due to confidentiality) is a key strength, though reliance on concentrated customer accounts poses risks.