Sanmina Corporation (SANM): one to watch?

Watch, don't chase — Sanmina beat earnings and raised guidance, but the crash reflects real doubts that its AI-driven profit margins are repeatable.

👀 WATCH Fundamentals62/100

Fell 21% in 6 trading day(s) — now $172.43

Why SANM dropped

On July 27, 2026 Sanmina reported a big earnings and revenue beat and even raised full-year guidance, yet the stock fell ~17-20% because investors are worried the quarter's unusually high 8.0% operating margin (versus a 6.4-6.9% guided range) was driven by one-off, lumpy "non-recurring engineering" work tied to AI hardware validation rather than durable, repeatable business, and because next quarter's revenue guidance came in slightly below analyst estimates.

Fwd P/E 12.9Op margin 7.0%Rev growth 69.7%Debt/equity 88.2%Analyst upside 50.8%

How this scored 62/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 2.4%

✅ Generates cash Free cash flow $-222M

✅ Not drowning in debt Debt/equity 88.2% (limit 200%)

✅ Can pay its bills Current ratio 1.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 6/25

Operating margin 7.0% 3/9

Net profit margin 2.4% 1/8

Return on equity 12.5% 3/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 69.7% 9/9

Earnings growth 68.3% 8/8

Expected profit change 181.7% 8/8

Value Is it cheap right now? 21/25

Forward P/E 12.9 8/10

PEG ratio 0.9 7/8

Analyst target upside 50.8% 6/7

Balance sheet Will it survive? 10/25

Debt / equity 88.2% 6/10

Current ratio 1.8 4/8

Free cash flow $-222M 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-29. Research only — not financial advice.