Last Updated: 09 Nov 2024
Executive Summary
Sanmina Corporation (SANM) is a leading provider of integrated manufacturing solutions for the electronics industry. The company's strong financial performance, coupled with its favorable valuation and positive analyst sentiment, make it an attractive investment opportunity.
Company Overview
Sanmina Corporation offers a comprehensive range of services, including manufacturing, components, products, and repair, logistics, and after-sales services. The company serves a diverse customer base across various industries, including aerospace, defense, medical, telecommunications, and computing. Sanmina has a global presence with operations in over 25 countries.
Fundamental Analysis
Revenue: Sanmina's revenue for the past twelve months (TTM) was $7.57 billion, representing a slight decrease of 1.7% year-over-year.
Earnings: The company's diluted EPS for TTM was $3.91, reflecting a 5% growth compared to the previous year.
Profitability: Sanmina's profit margins are relatively low, with a gross profit margin of 8.2% and an operating margin of 4.6%.
Valuation: With a market capitalization of $4.56 billion, Sanmina trades at a trailing PE ratio of 21.33 and a forward PE ratio of 13.37. These valuations are in line with industry averages.
Technical Analysis
Trend: Sanmina's stock price has been trending sideways over the past year, with a 52-week high of $86.05 and a 52-week low of $47.03.
Support and Resistance: The stock has immediate support at $68.11 (50-day moving average) and resistance at $74.5 (analyst target price).
Momentum: The stock's momentum indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are currently neutral.
Short Term Outlook
In the short term, Sanmina's stock price is likely to remain range-bound between $68.11 and $74.5. The company's financial performance is expected to be stable, with modest revenue and earnings growth.
Long Term Outlook
The long-term outlook for Sanmina is positive. The company's strong market position, diversified customer base, and global presence provide a solid foundation for future growth. Sanmina is also well-positioned to benefit from the increasing demand for electronics manufacturing services.
Analyst Recommendations
Analysts are generally bullish on Sanmina Corporation. Out of 5 analysts, 1 has a "Strong Buy" rating, 1 has a "Buy" rating, 1 has a "Hold" rating, and 2 have a "Sell" rating. The average analyst target price is $74.5.
