Sanmina
San Jose, California, United States
Industry: Technology/Electronics Manufacturing Services
Region: US 🇺🇸
Year Founded: 1980
IPO Date: 11-26-1993
Market Cap: Approx. $2.25 billion (2021)
Number of Employees: Approx. 46,000 (as of 2021)
Revenue: $7.1 billion (2020)
Net Income: $123.45 million (2020)
Sanmina Corporation
Sanmina Corporation IPO
Sanmina Corporation went public on December 1, 1993.
This electronics manufacturing services (EMS) company traded under the ticker symbol SANM on the NASDAQ.
At the time of its initial public offering (IPO), Sanmina offered 2.4 million shares at a price of $19 per share.
Since its IPO, the company has grown significantly through various acquisitions, including the purchase of SCI Systems in 2001, which transformed Sanmina into a global EMS leader.
Sanmina Corporation IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Sanmina Corporation’s Prospectus here.
Company Overview & History
Sanmina Corporation was founded in 1980 by Jure Sola and Milan Mandarić in San Jose, California.
The company began as a manufacturer of printed circuit boards before gradually evolving into an electronics manufacturing services (EMS) company.
The founders aimed to deliver top-tier services, especially in complex technology manufacturing, by maintaining a commitment to quality, reliability, and innovative engineering.
Sanmina Corporation is now a leading integrated manufacturing solutions provider serving the fastest-growing segments of the global Electronics Manufacturing Services (EMS) market.
It is a key player in producing a variety of electronics, including communication networks, defense and aerospace systems, medical systems, and industrial and automotive products.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2022 | 8.6 | 0.2 | 0.4 | 0.5 |
| 2021 | 8.2 | 0.2 | 0.4 | 0.4 |
| 2020 | 7.6 | 0.1 | 0.3 | 0.3 |
| 2019 | 8.2 | 0.2 | 0.4 | 0.4 |
| 2018 | 8.1 | 0.2 | 0.4 | 0.4 |
| 2017 | 6.9 | 0.1 | 0.3 | 0.3 |
| 2016 | 6.5 | 0.1 | 0.3 | 0.3 |
| 2015 | 6.2 | 0.1 | 0.3 | 0.3 |
| 2014 | 6.2 | 0.1 | 0.3 | 0.3 |
| 2013 | 5.9 | 0.1 | 0.3 | 0.3 |
Business Model
Sanmina operates in a complex yet lucrative business model - it manufactures a wide range of electronic components for other businesses, essentially acting as a third-party manufacturer.
The company doesn’t design or sell its own products but helps other companies in their design and manufacturing processes.
Sanmina’s business model emphasizes the provision of end-to-end manufacturing solutions, including design, engineering, testing, manufacturing, logistics, and post-manufacturing repair/warranty services.
The company prides itself on its ability to manage the entire product lifecycle, which is a key differentiator from many of its competitors.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2023 | 55.218 |
| 2022 | 57.29 |
| 2021 | 41.46 |
| 2020 | 31.89 |
| 2019 | 34.24 |
| 2018 | 24.06 |
| 2017 | 33 |
| 2016 | 36.65 |
| 2015 | 20.58 |
| 2014 | 23.53 |
| 2013 | 11.07 |
| 2012 | 9.31 |
| 2011 | 11.48 |
| 2010 | 2.82 |
| 2009 | 10.92 |
| 2008 | 20.7 |
| 2007 | 25.56 |
| 2006 | 50.82 |
| 2005 | 75.6 |
Risk Factors
The major risk factors for Sanmina include market competition, technological changes, and global supply chain disruptions.
As the company operates in a fiercely competitive market, it constantly needs to keep pace with rapid technological advancements and offer innovative solutions to maintain its market position.
The company’s reliance on a limited number of customers for a significant portion of its revenues also poses a risk.
If any of these key customers were to drastically reduce orders or switch to a competitor, it could adversely impact Sanmina’s business.
Lastly, being a global company, Sanmina is vulnerable to various geopolitical risks, including trade restrictions, tariffs, and political instability in countries where it operates or sources materials.
Market Opportunity
The market opportunity for Sanmina is expansive and growing. As technology continues to advance, the demand for electronic products and systems across various sectors such as communications, aerospace, defense, medical, and automotive is likely to increase.
Furthermore, as companies look to focus more on their core competencies, they’re more likely to outsource their manufacturing needs to specialized companies like Sanmina.
Competitors
- Flex Ltd.
- Benchmark Electronics, Inc.
- Celestica Inc.
- Jabil Inc.
- Plexus Corp.
- Foxconn Technology Group
- Venture Corporation Limited
- Zhen Ding Technology Holding Limited
Key/Fun Company Facts
- Sanmina’s name is derived from the first names of the founders - San from Sani Bello and Mina from Milan Mandarić.
- The company has over 50 manufacturing locations in 23 countries worldwide.
- Sanmina won the “Highest Product Quality” award from one of its clients, Nokia Siemens Networks, in 2010.
- Sanmina has been included in the Fortune 500 list of America’s largest companies several times, with a rank of 411 in 2021.
- The company operates in various high-tech sectors, including producing components for NASA’s Mars Rover.
- It has significantly grown through acquisitions, with the purchase of SCI Systems in 2001 being one of the most impactful, nearly doubling the size of the company.