Nasdaq:SANM
SANMINA CORP
A global leader in electronic manufacturing services offering scalable production solutions across consumer electronics, automotive, and industrial sectors.
Key Metrics
Investment Thesis
Bull Case
The stock offers exposure to the essential electronic manufacturing services sector with a proven track record of serving critical industries like automotive and medical devices that provide defensive revenue stability. Strong operating cash flow generation relative to net income suggests efficient capital management, while the company's global footprint positions it well for long-term growth in emerging technologies.
Bear Case
Revenue volatility is evident with a significant drop to $7.57B in 2024 before recovering, highlighting the company's sensitivity to macroeconomic cycles and consumer spending weakness. The substantial retained earnings deficit of -$2.46B and large treasury stock balance may signal past aggressive share buybacks or historical losses that could constrain future capital flexibility if margins compress.
About SANMINA CORP
Sanmina Corporation provides electronic manufacturing services to original equipment manufacturers across consumer electronics, industrial, automotive, medical, and telecommunications markets. The company specializes in high-volume assembly, testing, and supply chain management solutions tailored for diverse global industries. Key products include complex printed circuit board assemblies, subsystems, and end-to-end product engineering services.
Analysis
Management Discussion
Sanmina reported a net income of $266.3M for the latest fiscal year, reflecting a recovery from the previous year's decline despite a modest revenue increase to $8.13B. Operating cash flow remained robust at $620.7M, providing strong liquidity to fund capital expenditures of $147.4M and manage working capital changes, though accounts payable increased by $99.0M indicating potential leverage on supply chain payments.
Industry Overview
The electronic manufacturing services industry is characterized by high barriers to entry due to required automation, global logistics networks, and deep client relationships. Companies in this space face pressure from rising labor costs and supply chain disruptions but benefit from the continuous demand for connected devices and electrification technologies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $8.94B | $7.57B | $8.13B |
| Cost of Revenue | $8.19B | $6.93B | $7.41B |
| Gross Profit | $743.2M | $640.4M | $716.4M |
| Operating Expenses | $287.6M | $304.9M | $361.8M |
| Operating Income | $455.7M | $335.5M | $354.6M |
| R&D | $26.4M | $28.5M | $31.1M |
| G&A | $255.1M | $266.2M | $290.2M |
| Stock-Based Comp | $50.4M | $57.4M | $63.4M |
| D&A | $118.2M | $122.4M | $119.5M |
| Depreciation | $116.0M | $122.0M | $119.0M |
| Other OpEx | $6.1M | $10.2M | $40.5M |
| Non-Operating Income | $-42.9M | $-18.0M | $-15.1M |
| Interest Expense | $36.3M | — | — |
| Pre-Tax Income | $412.8M | $317.5M | $339.4M |
| Income Tax | $85.3M | $79.8M | $73.2M |
| Continuing Ops | $327.5M | $237.8M | $266.3M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $327.5M | $237.8M | $266.3M |
| Minority Interest | $17.5M | $15.2M | $20.4M |
| Net to Common | $310.0M | $222.5M | $245.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $3.88B | $3.87B | $4.87B |
| Cash & Equivalents | $667.6M | $625.9M | $926.3M |
| Inventory | $1.48B | $1.44B | $1.99B |
| Prepaid Expenses | $58.2M | $79.3M | $124.7M |
| Other Current Assets | $1.68B | $1.72B | $1.83B |
| Long-Term Assets | $994.4M | $952.4M | $992.7M |
| PP&E (Net) | $632.8M | $616.1M | $682.4M |
| Operating Leases | $95.8M | $77.6M | $67.8M |
| Other LT Assets | $265.8M | $258.7M | $242.6M |
| Total Assets | $4.87B | $4.82B | $5.86B |
| Current Liabilities | $2.03B | $1.94B | $2.82B |
| Accounts Payable | $1.61B | $1.44B | $1.58B |
| Current Leases | $22.3M | $22.3M | $21.7M |
| Other Current Liab | $398.2M | $476.4M | $1.22B |
| Long-Term Liabilities | $522.0M | $520.7M | $497.0M |
| Long-Term Debt | $312.3M | $299.8M | $283.0M |
| LT Operating Leases | $60.7M | $44.5M | $36.0M |
| Other LT Liab | $149.0M | $176.3M | $178.0M |
| Total Liabilities | $2.56B | $2.46B | $3.32B |
| Shareholders' Equity | $2.32B | $2.36B | $2.54B |
| Retained Earnings | $-2.93B | $-2.71B | $-2.46B |
| AOCI | $70.9M | $66.7M | $69.6M |
| Treasury Stock | $1.49B | $1.74B | $1.90B |
| Total L&E | $4.87B | $4.82B | $5.86B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $327.5M | $237.8M | $266.3M |
| Non-Cash Adjustments | $465.1M | $195.7M | $-468.0M |
| Working Capital Changes | $-557.4M | $-93.2M | $822.4M |
| Cash from Operations | $235.2M | $340.2M | $620.7M |
| Capital Expenditures | $191.4M | $111.2M | $147.4M |
| Cash from Investing | $-192.5M | $-114.4M | $-108.2M |
| Debt Issuances | $0 | — | — |
| Cash from Financing | $94.5M | $-269.7M | $-173.8M |
| FX Effect | $498.0K | $2.2M | $1.8M |
| Net Change in Cash | $137.7M | $-41.7M | $340.4M |
| Beginning Cash | $529.9M | $667.6M | $625.9M |
| Ending Cash | $667.6M | $625.9M | $966.2M |
Frequently Asked Questions
How does SANMINA CORP make money?
Consumer Electronics Assembly (smartphones, wearables, PCs), Industrial & Medical Devices (precision manufacturing for critical infrastructure), Automotive Electronics (EV components and telematics systems), and Emerging Technology Services (IoT devices and 5G infrastructure support).
What are the main risks for SANM?
Cyclical downturns in consumer electronics demand impacting order volumes, geopolitical tensions disrupting global supply chains and affecting component sourcing, currency exchange rate fluctuations eroding international margins, and potential shifts in technology focus away from traditional manufacturing niches.
What is SANM's competitive advantage?
Deep customer integration with Fortune 500 partners enabling rapid time-to-market, a highly automated global manufacturing network ensuring cost efficiency at scale, and specialized expertise in high-mix, low-volume complex assemblies that differentiate from commoditized competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.