Sanmina Corp (SANM, Financial) has been experiencing significant market fluctuations, with a daily loss of 14.33% and a 3-month loss of 18.07%. Despite these losses, the company's Earnings Per Share (EPS) stands at 5.19. This raises an important question: is Sanmina (SANM) modestly undervalued? This valuation analysis aims to answer this question and provide investors with a deeper understanding of the company's intrinsic value.
Company Overview
Sanmina Corp is a leading provider of integrated manufacturing solutions, components, and after-market services to original equipment manufacturers in the communications networks, storage, industrial, defense and aerospace markets. The company operates in two main segments: Integrated Manufacturing Solutions, which is primarily focused on printed circuit board assembly, and Components, Products, and Services, which includes interconnect systems and mechanical systems. With its primary revenue generated in the United States, China, and Mexico, Sanmina has a global presence.
Currently, Sanmina's stock price stands at $45.24, while its GF Value, an estimation of fair value, is $60.67. This comparison suggests that Sanmina may be modestly undervalued. To further explore this possibility, let's delve into a detailed financial assessment of the company.
Understanding the GF Value
The GF Value is a unique measure of a stock's intrinsic value, calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates. The GF Value Line provides a visual representation of the stock's fair trading value.
According to the GF Value, Sanmina is currently modestly undervalued. This conclusion is based on three key factors: historical trading multiples, an internal adjustment factor considering the company's past growth, and future business performance estimates. If a stock's price is significantly above the GF Value Line, it may be overvalued and likely to deliver poor future returns. Conversely, if it's significantly below the GF Value Line, the stock may be undervalued and poised for high future returns. With its current market cap of $2.60 billion, Sanmina's stock appears to be modestly undervalued.
Given this valuation, the long-term return of Sanmina's stock is likely to be higher than its business growth.
Link: These companies may deliever higher future returns at reduced risk.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
