Valuation Assessment of Sanmina Corp SANM
On August 12, 2026, Sanmina Corp (SANM) shares rose 3.0% to a current price of $208.90. This price lies within a 52-week range of $108.37 to $288.68, reflecting substantial volatility and growth over the past year.
- GF Valueâ„¢ verdict: Currently priced at $208.90, which is 45.3% above the GF Valueâ„¢ estimate of $143.73.
- GF Scoreâ„¢: 91/100, indicating a strong overall performance based on various financial metrics.
- Notable signal: Insiders sold $4.0M worth of shares in the last 3 months, showing a lack of buying interest.
Is SANM Overvalued or Undervalued?
Sanmina Corp SANM is currently considered significantly overvalued, with the GF Valueâ„¢ estimate indicating a fair value of $143.73. This means that at the current price of $208.90, the stock is trading at a 45.3% premium to its intrinsic value. The GF Valueâ„¢ is derived from historical trading multiples, past business performance, and future growth expectations, providing a comprehensive view of a stock's intrinsic worth.
The substantial gap between the current price and the GF Valueâ„¢ suggests a lack of margin of safety for potential investors. Given that the stock is significantly overvalued, there are inherent risks associated with purchasing shares at this level. Investors may face difficulties if the market corrects to align with the intrinsic value, potentially leading to price declines.
How Does SANM's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 37.4x | 14.5x |
| Forward P/E | 14.3x | - |
Currently, SANM's P/E ratio stands at 37.4x, which is 157% higher than its 5-year median P/E of 14.5x. This analysis indicates that SANM is trading significantly above its historical valuation levels. Such a high P/E ratio aligns with the GF Valueâ„¢ assessment of being overvalued, suggesting that the current pricing may not be justified based on historical earnings performance.
What Does SANM's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a composite score that evaluates a company's financial strength, profitability, growth potential, and valuation metrics. Sanmina Corp boasts a GF Scoreâ„¢ of 91/100, reflecting strong overall performance in various financial aspects.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 91 |
| Financial Strength | 6/10 |
| Profitability | 8/10 |
| Growth | 10/10 |
| Valuation | 5/10 |
| Momentum | 10/10 |
The scores indicate that while SANM has strong growth potential and momentum, its financial strength is moderate at 6/10, and its valuation is average at 5/10. The strongest aspect of SANM is its growth rank (10/10), while the valuation rank is a point of concern given the current overvaluation.
What Are Gurus and Insiders Doing with SANM?
Currently, 8 investment gurus hold SANM shares, with 3 increasing their positions and 9 trimming their holdings in recent quarters. This mixed activity may indicate varying levels of confidence in the stock among institutional investors. Notably, insiders have sold $4.0M of stock in the last three months without any buying activity, suggesting potential concerns regarding the company’s future performance or current valuation.
The pattern of insider selling, coupled with the trimming activity from gurus, signals caution. Investors should be aware of these trends as they may reflect underlying sentiments about the stock's price and performance outlook.
What This Means for Investors
In summary, Sanmina Corp SANM appears to be significantly overvalued based on the GF Valueâ„¢ estimate of $143.73 compared to its current trading price of $208.90. With a high P/E ratio reflecting a premium over historical norms and recent insider selling, potential investors may want to exercise caution when considering this stock. For further details on SANM, visit the Sanmina Corp (SANM) stock page and explore the GF Valueâ„¢ page for more insights.
Frequently Asked Questions
What is SANM's GF Scoreâ„¢?
SANM has a GF Scoreâ„¢ of 91/100, indicating strong performance across multiple financial metrics.
Is SANM overvalued or undervalued?
According to the GF Valueâ„¢, SANM is overvalued at the current price of $208.90, which is 45.3% above its fair value of $143.73.
What is SANM's P/E ratio?
SANM's current P/E ratio is 37.4x, which is significantly above its 5-year median P/E of 14.5x, indicating a high valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
