Sanmina Corporation Common Stock (SANM)

FairStock Score: 32/100 — RISKY

Key Financials

Strengths

• Revenue growth of 59.0% demonstrates strong top-line momentum
• Established organization with 35,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($66) with negative 168% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Sanmina Corporation Common Stock is a small-cap technology company valued at $9.6 billion. The business generates $9.3 billion in annual revenue with a 0.5% net margin. From a quality standpoint, Sanmina shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.2 warrants caution. On valuation, the stock is commanding a steep 43.0x multiple, with trades far above its Graham Number ($66) with no margin of safety. Growth dynamics show revenue growing at 59.0% and profit growth of -24.2%. Our composite FairStock Score of 32/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Sanmina's 59% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 43x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer