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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Sanmina Corporation (XNAS:SANM) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SANM
Name:
SANMINA CORPORATION (XNAS:SANM)
Sector:
42.92M
Industry:
Electronic Components
CEO:
Mr. Hartmut Liebel
Total Employees:
35,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -112.03% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SANMINA CORPORATION(SANM) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ELECTRONIC COMPONENTS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
46.98
One Month Price Target:
$47.23
Six Month Price Target :
$48.51
Likely Price in One Year's Time:
Ticker:
$50.04
Likely Trading Range Today Under (Normal Volatility)
$46.82
Price Upper limit ($) :
$47.22
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$44.54
This week:
$41.53
This month :
$36.09
Other Primary facts
Market Cap:
2.72B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
57.80M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
15.36%
-16.79%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$58.27
$53.05
$35.69
$40.91
Medium risk (<10%) entry points
Buy Call
Sell Call
$51.35
Buy Put:
Sell Put:
$50.23
$42.60
$43.73
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SANM
Sharpe Ratio:
2.99%
Comparison:
SANM, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 47.37% higher than the industry
& ratio is 31.16% higher than the market/S&P 500 average
Average Returns/Yield of
SANM
Daily returns:
0.09%
Weekly returns:
0.43%
Monthly returns:
1.71%
Yearly returns:
15.78%
Comparison of returns:
Average annual returns/yield (last 3 years) is 30.15% above industry average
Classification:
SANM, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.38
Statistical test of Returns:
SANM has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.57%
Weekly Volatility:
5.74%
Monthly Volatility:
11.47%
Yearly Volatility:
39.74%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.97%
Volatility in last five trading days has been -62.38% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.18%
Weekly VaR:
-11.59%
Monthly VaR:
-23.18%
How Much Can the price of
SANM
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-20%
Worst case (decline):
-80.30%
This translates to price declining to:
$37.81
This translates to price declining to:
$9.25
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
SANM is a 63.61% riskier investment compared to the market/S&P 500 & is 40.16% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -3.48% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SANM
Beta in relation to market/S&P 500--0.97
Expected beta in 1 year's time:
0.673
Expected beta in 3 year's time:
0.951
Unlevered (debt free) Beta:
0.846
Beta in relation to Nasdaq (XNAS):
0.672
Beta in relation to all global stocks::
0.762
Beta Comparison & Analysis
Beta of competitors/peers::
1.368
Beta is -29.24% lower than peers
Average Industry Beta:
1.174
Beta is -17.53% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
15.25%
Sustainable growth rate is 0.13% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.107
Alpha is 134.49% above industry average alpha yield
Alpha is 684% higher than market/& is unsustainably high
Analysis of Cost of Capital of
SANM
Equity cost of capital:
0.098
Equity cost of capital is -12.59% below industry mean WACC
Unlevered (without debt) cost of capital:
8.55%
Before-tax cost of debt:
5.97%
After-tax cost of debt:
4.72%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
4.72%
WACC is 1.80% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$120.59
Revenue growth rate per share of (3Y):
1.44
Annual revenue growth rate is -106.09% below industry average
EPS:
$4.30
Expected Annual growth rate of EPS (3Y):
26.71%
Expected future EPS growth rate is 34.86% higher than the Electronic Components industry
Free cash flow (FCF) per share:
$3.86
-
-
Debt per share
$5.31
EBITDA per share
$7.83
Valuation Analysis Today of
SANM
P/E Ratio:
12.22
P/E Ratio of Competitors/Peers:
160.31
P/E ratio is -92.38% lower than main peers & is -49.05% lower than the industry
Stock price/value with industry average P/E ratio: $103.13
SANM is -54.44% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.39
Price to sales ratio is -85.19% below the industry mean
P/B (Price to book value ratio):
1.44
Price to free cash flow: 12.16
Price to free cash flow ratio is -83.03% lower than the industry
Net income growth rate (3Y):
-392.05%
Net income growth rate is -308.24% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
16.33%
Net debt to equity ratio:
-16.04%
Debt to assets ratio:
6.82%
Net debt to assets ratio:
-6.70%
Debt-to-asset ratio is -87.28% below industry average
Ability to repay debt:
Interest coverage ratio:
23.25
Interest coverage ratio is 67.83% more than industry average
Looking forward:
Debt growth rate:
-5.08%
Annual debt growth is 715% higher than industry average debt growth rate
Debt repayment rate in last quarter: 6.31%
Analysis of Key Statistics
Correlation of price movement with the market:
0.551
Statistical significance of correlation:
SANM has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.614
Stock price is -10.31% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.614
Correlation of price movement with Nasdaq (^IXIC):
0.001
Covariance of price movement with the market:
0.002
Kurtosis
7.023
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.154
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
SANM
Gross Profit Margin Ratio:
32%
Operating Profit Margin Ratio:
4.37%
Operating profit margin is -49.52% lower than the industry
Net Profit Margin Ratio:
32%
Effective Tax Rate:
11.60%
Effective tax rate is -22.12% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
15.19%
Return on equity (ROE) is -12.03% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
6.35%
Return on assets (ROA) is -9.28% lower than the industry
Financial Leverage:
1.1x
Current Ratio:
1.74
Current ratio is -32.09% below industry average
Cash Conversion Cycle (days):
8.1
Cash conversion cycle is -88.69% below industry average
The remaining useful life of property plant & equipment is: 7.7 years
Stock based compensation to net income ratio:
3.16%
In-depth Efficiency Analysis
Revenue generated per employee:
199.2K
Each employee generates 11% more revenue than industry average revenue per employee
EBITDA generated per employee:
12.9K
Each employee generates -54% less EBITDA than industry average revenue per employee
Profit generated per employee:
8.2K
Each employee generates -50% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
1.2K
Each employee generates -144% less free cash flow than industry average revenue per employee
Assets/Capital per employee
26.0K
Each employee generates -144% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -7.33%
Growth rate in R&D investment/expenditure is 47.62% higher than the industry
Competitors/Peer firms of
SANM
EXPENSIFY, INC. (XNAS:EXFY)
REMITLY GLOBAL, INC (XNAS:RELY)
PLEXUS CORP. (XNAS:PLXS)
Avidxchange Holdings Inc (XNAS:AVDX)
VIMEO, INC. (XNAS:VMEO)
BOTTOMLINE TECHNOLOGIES, INC. (XNAS:EPAY)
JFROG LTD (XNAS:FROG)
QADB
ACV AUCTIONS INC. (XNAS:ACVA)
Current Analyst Ratings
Strong buy�0%
Buy�4%
Hold�25%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
4/2/22
Revenue:
6.97B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
6.41B
564.41M
21.00M
-
237.72M
-
-
258.72M
1.11M
19.46M
109.86M
452.63M
304.68M
285.79M
323.31M
37.51M
285.79M
Statement of Cash Flow
Date:
Period:
27.47M
Differed Income Tax :
6.71M
Stock Based Compensation :
9.03M
Change in Working Capital :
- 29900.00K
Accounts Receivables:
- 106972.00K
Other Working Capital:
-
Other Non-Cash Items:
- 3638.00K
Net Cash Provided by Operating Activities:
68.30M
Investments in PP&E:
- 25376.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
1/1/22
2022
Q1
627.72M
-
627.72M
1.66B
1.24B
59.19M
3.59B
525.16M
-
-
-
227.24M
157.53M
909.93M
-
4.50B
1.69B
18.75M
-
-
351.97M
2.07B
307.16M
248.33M
555.49M
-
2.62B
-
- 3395732.00K
-
3.40B
January 1, 2022 at 7:00:00 AM
6.66B
1.88B
4.50B
-
325.91M
- 301807.0K
-
8.01M
- 17362.00K
- 20688.00K
1.05M
- 68823.00K
-
16.00M
- 72461.00K
- 786.00K
- 22309.00K
627.72M
650.03M
68.30M
- 25376.00K
42.92M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
SANM
2023
2024
2025
2026
2027
$50.29
$283.60
$302.05
$321.70
$342.63