SANM is now undervalued and could go up 178%
Sanmina, headquartered in San Jose, California, provides integrated manufacturing solutions and services primarily to OEMs across various industries, employing 34,000 staff. The company operates through Integrated Manufacturing Solutions and Components, Products, and Services divisions.
Based on our analysis, Sanmina Corporation (SANM) has received an undervalued rating of 4 out of 5 stars from Cashu, reflecting its strong financial performance relative to its industry peers.
The company’s Price-to-Earnings (PE) Ratio stands at 23.00, slightly below the sector average of 23.16. This indicates that Sanmina is valued similarly to its peers in terms of earnings, suggesting it is not overvalued despite its profitability.
More compelling is Sanmina's Price-to-Book (PB) Ratio, which is 1.70 compared to the sector average of 3.48. A lower PB ratio implies that the company is trading at a discount relative to its book value, making it attractive for investors seeking undervalued stocks.
Sanmina also demonstrates a solid Net Profit Margin of 2.94, significantly higher than the sector average of -15.27. This positive margin indicates that Sanmina is effectively converting its revenue into profit, showcasing operational efficiency that is not reflected in the broader industry.
Additionally, the company boasts a Return on Equity (ROE) of 10.13, far exceeding the sector average of -23.19. This strong ROE illustrates that Sanmina is generating substantial returns on shareholders' equity, strengthening its financial position. The Return on Assets (ROA) of 4.61, compared to the sector's -12.89, further reinforces this positive outlook, demonstrating effective asset utilization.
In summary, Sanmina's favorable financial ratios highlight its strong performance and potential for future growth, warranting its undervalued status.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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