Sanmina Corporation Is Poised for More Outperformance

Company Profile:

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It offers product design and engineering services, including initial development, detailed design, prototyping, validation, preproduction, and manufacturing design; manufacturing of components, subassemblies, and complete systems; final system assembly and test; direct order fulfillment and logistics, and supply chain management services; and after-market product service and support. The companys components and products comprise printed circuit boards, backplanes and backplane assemblies, cable assemblies, mechanical systems, and optical and radio frequency components and modules. The company was formerly known as Sanmina-SCI Corporation and changed its name to Sanmina Corporation in November 2012. Sanmina Corporation was founded in 1980 and is headquartered in San Jose, California.

Recent News:

Moody’s Investors Service upgraded Sanmina Corporation’s (“Sanmina”) Corporate Family Rating (CFR) to Ba2 from Ba3 and affirmed the secured notes at Ba2. The ratings outlook remains positive.

For the second fiscal quarter ended March 28, 2015, revenue was $1.53 billion, compared to $1.67 billion in the prior quarter and $1.48 billion for the same period of fiscal 2014. GAAP net income was $14.7 million, compared to $20.8 million for the same period a year ago.

 

Fundemental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SANM’s strengths can be seen in its better growth, better profitability and better efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD. RSI is increasing to 50.52. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Sanmina Corporation (SANM) a STRONG BUY.

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