Is It Too Late To Consider Sanmina (SANM) After Recent Pullback In The Share Price?

Simply Wall St

Mon, February 16, 2026 at 6:09 PM GMT+9 4 min read

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SANM

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If you are asking yourself whether Sanmina at around US$145.81 is still offering value or starting to look fully priced, you are exactly who this article is written for.

The stock has pulled back recently, with a 3.3% decline over the last week, a 17.8% decline over the last 30 days and an 8.5% decline year to date, while the 1 year and 3 year returns sit at 62.6% and 129.5% and the 5 year return is a very large gain.

Recent news coverage has focused on Sanmina's role as a key electronics manufacturing services provider, including its exposure to areas like networking hardware, industrial equipment and communications infrastructure. These themes help frame why the share price has seen both strong longer term returns and more recent volatility as investors consider growth projects alongside execution and sector risks.

Simply Wall St's own valuation framework currently gives Sanmina a valuation score of 2 out of 6. In the next sections we will walk through what different valuation approaches say about that score and finish by looking at a broader way to think about value beyond the headline metrics.

Sanmina scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Sanmina Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model projects a company’s future free cash flows and discounts them back to today using a required rate of return, to estimate what the entire business might be worth in today’s dollars.

For Sanmina, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $552.7 million. Analyst input is relatively light, with an explicit projection of $253 million in free cash flow for 2027, and the remaining figures out to 2035 extrapolated by Simply Wall St using modest growth assumptions on those analyst numbers.

When all those projected cash flows are discounted back to today, the DCF model suggests an intrinsic value of about $77.03 per share. Compared with the current share price of around $145.81, this indicates the stock is about 89.3% overvalued on this specific cash flow framework.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Sanmina may be overvalued by 89.3%. Discover 54 high quality undervalued stocks or create your own screener to find better value opportunities.

SANM Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Sanmina.

Story Continues  

Approach 2: Sanmina Price vs Earnings

For a profitable company like Sanmina, the P/E ratio is a useful shorthand for how much investors are paying for each dollar of earnings. It ties the share price directly to the bottom line, which most investors watch closely. Higher expected growth and lower perceived risk tend to justify a higher “normal” P/E, while slower growth or higher risk usually call for a lower one.

Sanmina currently trades on a P/E of 34.59x. That sits above the electronic industry average P/E of 28.31x, and below the peer group average of 39.69x. So on a simple comparison, the stock is priced higher than the broader industry, though not as highly as some peers.

Simply Wall St’s Fair Ratio for Sanmina is 39.15x. This is a proprietary view of what the P/E might look like once company specific traits are factored in, such as earnings growth expectations, profit margin profile, industry, market cap and key risks. Because it blends these elements, the Fair Ratio can be more tailored than a plain industry or peer comparison. With the current P/E at 34.59x versus a Fair Ratio of 39.15x, this framework labels Sanmina as trading at an undervalued level on earnings.

Result: UNDERVALUED

NasdaqGS:SANM P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your Sanmina Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St’s Community page you can use Narratives, where you set out your story for Sanmina, link that story to your own revenue, earnings and margin forecasts, see what fair value those numbers imply, compare that to the current price to guide potential buy or sell decisions, and watch that fair value update as new earnings or news arrive. For example, one investor might build a bullish Sanmina Narrative around a Fair Value of about US$197.50. Another, more cautious investor could reasonably anchor their Narrative closer to the analyst consensus target of US$119.50.

Do you think there’s more to the story for Sanmina? Head over to our Community to see what others are saying!

NasdaqGS:SANM 1-Year Stock Price Chart

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include SANM.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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