Sanmina provides end-to-end manufacturing solutions, delivering support to OEMs primarily in the communications, defense and aerospace, industrial and semiconductor systems, medical, multimedia, computing and storage, automotive and clean technology sectors. The company was founded in 1980 and is based in San Jose, California.
SANM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sanmina Corp. To summarize, we found that Sanmina Corp ranked in the 48th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 4.5%. In terms of the factors that were most noteworthy in this DCF analysis for SANM, they are:
Sanmina Corp's effective tax rate, as measured by taxes paid relative to net income, is at 21 -- greater than 83.04% of US stocks with positive free cash flow.
Sanmina Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.46. This coverage rate is greater than that of 73.88% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 8. This value is greater than merely 18.39% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GVP, RMBS, CCIHY, ALRM, and DXC can be thought of as valuation peers to SANM, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Sanmina Corporation (NASDAQ: SANM) is an information technology company operating in the electronic manufacturing services industry. Its stock price surged nearly 20% after it beat both EPS and revenue on July 29. However, it is now down in the $26-27 range. Therefore, my aim with this thesis is understand the...
Chetan Woodun on Seeking Alpha | September 11, 2020
SAN JOSE, Calif., Aug. 25, 2020 /PRNewswire/ -- Sanmina Corporation (Nasdaq: SANM), a leading integrated manufacturing solutions company that manufactures some of the world's most complex and innovative electronic, optical and mechanical products, today announced that it has bolstered its…
Sanmina (SANM) CEO Hartmut Liebel is leaving the company, effective immediately.Jure Sola, the company's co-founder and executive chairman, has been appointed to reassume the Chairman and CEO position.SANM is not providing an update to its stated outlook provided on July 29, 2020.Previously: Sanmina +14% after earnings beat, solid guidance (July...
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