SANM: 58.6% TTM Growth, 0.32 PEG — ZT Systems Bought 86% of the Increase
Sanmina clears this week's small-cap screen with 58.56% TTM revenue growth, a 0.32 PEG on both vendors' calculations and $901.06 million of trailing operating cash flow, while the ZT Systems acquisition supplies about 86% of the revenue increase and management's own 6% to 7% margin frame sits below the 8.0% just reported.
Sanmina (NASDAQ: SANM) cleared all four hard filters in this week's small-cap screen. The San Jose contract manufacturer reported 58.56% trailing-twelve-month revenue growth, a displayed PEG of 0.32, positive trailing operating cash flow of $901.06 million, and a $9.42 billion market capitalisation at the October 16, 2026 close of $175.67. 12
The pass has arrived after a rough week. The shares fell 6.92% on Friday and 19.23% across the week, and they sit 39.15% below their 52-week high of $288.68. The four contract manufacturers in the peer table below fell on Friday too. 2
Four analysts cover the company. One rates it Strong Buy, three rate it Hold, and the average target is $262.50 against Friday's close. 3
The question this note answers is where the 58.56% came from. Sanmina raised its revenue 77% in nine months, most of it by buying a business from AMD. The acquisition, the core business and the margin now move at three different rates.
Screen verification
| Metric | Hard screen filter | SANM observed value | Status | Data source and measurement basis |
|---|---|---|---|---|
| Market capitalisation | Under $10.0B | $9.42B | Pass | 53.59 million shares against the October 16, 2026 close of $175.67; Finviz shows $9.42B on the same count |
| TTM revenue growth | Above +30.0% | +58.56% | Pass | $12,763 million for the twelve months ended June 27, 2026 against $8,050 million a year earlier, as the quarterly table below shows; Finviz shows "Sales Y/Y TTM" of 58.56% |
| PEG ratio | Under 1.00 | 0.32 (Finviz) 0.51 (StockAnalysis) | Pass on both | Finviz divides a forward P/E of 12.49 by projected five-year EPS growth of 39.04%; StockAnalysis divides its own 13.90 forward multiple by its own growth estimate |
| Operating cash flow (TTM) | Above $0.00 | +$901.06M | Pass | Sum of the four quarters to June 27, 2026: $199.08M + $178.73M + $398.76M + $124.49M; StockAnalysis cash flow statement reports $901.06M |
The screen took every Nasdaq, NYSE and NYSE American listing with a market capitalisation between $200 million and $10 billion, trailing revenue above $100 million, trailing revenue growth above 30%, positive trailing operating cash flow and a positive trailing price-to-earnings multiple, which the PEG calculation needs. That produced 288 names. Each was then read on its Finviz quote page for the displayed PEG, forward P/E and five-year growth estimate, and 54 of them showed both trailing growth above 30% and a PEG below 1.
Reproducing the trailing revenue figure
| Quarter | Net sales | GAAP gross margin | Non-GAAP operating margin |
|---|---|---|---|
| Q2 fiscal 2025 (March 2025) | $1,984M | 8.88% | 5.6% |
| Q3 fiscal 2025 (June 2025) | $2,042M | 8.87% | 5.7% |
| Q4 fiscal 2025 (September 2025) | $2,096M | 9.12% | 6.0% |
| Q1 fiscal 2026 (December 2025) | $3,190M | 7.60% | 6.0% |
| Q2 fiscal 2026 (March 2026) | $4,013M | 8.82% | 6.4% |
| Q3 fiscal 2026 (June 2026) | $3,464M | 10.49% | 8.0% |
(Net sales from StockAnalysis quarterly financials; gross margins computed from the net sales and cost of sales lines of each release; non-GAAP operating margins as reported in the March 2026, June 2026 and September 2025 releases, each of which restates the year-earlier quarter beside the current one.)
The trailing total is the September 2025 quarter plus the three fiscal 2026 quarters: $2,096 million + $3,190 million + $4,013 million + $3,464 million = $12,763 million. The same four quarters a year earlier are $2,018 million + $2,006 million + $1,984 million + $2,042 million = $8,050 million. $12,763 million against that base is +58.55%. 4
How the PEG of 0.32 is built
Finviz takes the forward price-to-earnings multiple and divides it by the projected five-year earnings growth rate. For Sanmina that is 12.49 ÷ 39.04% = 0.32. 2
StockAnalysis arrives at 0.51, and both figures sit under 1, so the pass holds on either vendor's basis. 1
The 39.04% growth assumption is the one to test. Consensus expects fiscal 2027 earnings per share of $14.08 against $12.11 for fiscal 2026, which is 16.29% growth. 3 Substituting that near-term rate into the same Finviz multiple gives 12.49 ÷ 16.29 = 0.77, still below 1. The five-year estimate would have to fall below 12.49% to take the displayed PEG to 1.00 at Friday's price.
What the operating cash flow is made of
Fiscal 2025 generated $621 million. 5 The September quarter added $199.08 million, the December quarter $178.73 million, the March quarter $398.76 million and the June quarter $124.49 million, for $901.06 million. 6
Capital spending over the same twelve months was $306.92 million, leaving $594.15 million of free cash flow. That trailing figure hides a sharp turn inside it: the June quarter produced $23.7 million of free cash flow against $342 million in the March quarter, because inventory and receivables absorbed the growth. 67
What Sanmina sells
Sanmina builds other companies' electronics. It runs two businesses, and the acquisition landed in the larger one. 8
Integrated Manufacturing Solutions handles circuit-board assembly, high-level assembly, test, direct-order fulfilment and warranty work. It produced $2,947.6 million in the June quarter against $1,639.3 million a year earlier. Components, Products and Services makes the parts that go into that work: advanced circuit boards, backplanes, cable assemblies, metal and plastic parts, plus optical, radio-frequency and microelectronic design, memory packs and storage systems. It produced $516.4 million against $402.3 million. 8
Communications networks and cloud and AI infrastructure together made 62% of June-quarter revenue. That group produced $2,148.4 million, up 173.2%. Industrial and energy, medical, defence and aerospace, and automotive and transportation produced $1,315.6 million between them, up 4.8%. 9
The geography moved with the mix. Americas sales were $2,392.1 million in the June quarter against $1,210.9 million a year earlier, and the United States supplied 59% of that region against 29% a year earlier, while Mexico's share fell from 68% to 40%. Asia-Pacific contributed $725.2 million and Europe, the Middle East and Africa $346.7 million. 8
Production runs through 39 sites listed on the July deck, 20 of them in the Americas, including Guadalajara, Juárez, Monterrey and Reynosa in Mexico, and Huntsville, Austin, Houston, Salt Lake City and Kenosha in the United States. 9
The acquisition. On October 27, 2025 Sanmina bought ZT Group Int'l, the ZT Systems business AMD had agreed to divest, for $2.4 billion in cash subject to closing adjustments, 1,151,052 Sanmina shares valued at $150 million, and up to $450 million more in cash if agreed financial targets are met over three years. ZT builds artificial-intelligence and general-purpose compute infrastructure for hyperscale computing companies. 10 The purchase was funded with $2.2 billion of new term loans: a $1.4 billion Term Loan A and an $800 million Term Loan B priced at SOFR plus 2.00%. 10
Two growth rates, one quarter apart
Management reports the two halves of the company separately, and that split is the part of the story a screener cannot see.
Core Sanmina, the business that existed before the acquisition, grew 7.3% year over year in the March quarter and 17.0% in the June quarter, to $2.4 billion. ZT supplied $1.88 billion of the $4.01 billion March quarter and $1.1 billion of the $3.46 billion June quarter. 911
ZT revenue fell from $1.88 billion in March to $1.1 billion in June. The March quarter was inflated because, in the chief executive's words, accelerated-compute shipments expected in the second half of the year moved forward into it. 11
The full-year guide frames the next one. Sanmina expects ZT revenue of $4.8 billion to $5.0 billion for eleven months of ownership, and core Sanmina revenue of $9.1 billion to $9.2 billion, which at the midpoint is 12.6% growth on fiscal 2025's $8.13 billion. 59
Subtracting the three reported quarters leaves $0.75 billion to $0.95 billion of ZT revenue for the September quarter. A $5 billion annual rate is $1.25 billion a quarter, so the guide has ZT running well below its own annualised rate in the quarter that closes the fiscal year.
The margin tells the same story from the other side. Non-GAAP operating margin went 5.7% (June 2025), 6.0% (September 2025), 6.0% (December 2025), 6.4% (March 2026) and 8.0% (June 2026). Those figures exclude stock compensation, ZT acquisition and integration costs and the inventory step-up; GAAP operating margin was 6.4% in June against 4.7% a year earlier. The company guides the September quarter to 7.5% to 8.0% on a non-GAAP basis and the full year to 6.85% to 7.25%. 7
On the July call, chief financial officer Jon Faust attributed part of the June quarter's margin to non-recurring engineering services tied to pre-production work, and put longer-term operating margins in the 6% to 7% range. 12 That is the company's own frame, and it sits below the quarter just reported.
Valuation, anchored to four listed peers
| Metric at the October 16, 2026 close | Sanmina 2 | Celestica (CLS) 13 | Flex (FLEX) 14 | Jabil (JBL) 15 | Plexus (PLXS) 16 |
|---|---|---|---|---|---|
| Market capitalisation | $9.42B | $38.31B | $33.42B | $29.16B | $6.14B |
| Enterprise value | $10.20B | $38.76B | $36.51B | $31.44B | $6.13B |
| TTM revenue growth | +58.56% | +47.30% | +12.25% | +20.64% | +14.20% |
| Forward P/E | 12.49x | 15.47x | 12.76x | 12.62x | 22.71x |
| EV / EBITDA (TTM) | 11.79x | 26.01x | 16.90x | 9.94x | 21.52x |
| Gross margin (TTM) | 8.98% | 11.55% | 9.29% | 10.84% | 9.58% |
| PEG | 0.32 | 0.24 | 0.30 | 0.47 | 1.48 |
(Every row uses one vendor's definitions so the comparison means the same thing across the five columns; all figures come from the Finviz quote pages linked in the column headers, read at the October 16, 2026 close.)
Sanmina has the fastest trailing growth in that group and the thinnest gross margin. It is the cheapest on forward earnings by a hair, at 12.49 times against Jabil's 12.62 and Flex's 12.76, and second cheapest on EV/EBITDA behind Jabil.
Against Celestica the discount is wide, 11.79 times against 26.01, and Celestica earns 11.55% gross margin against Sanmina's 8.98%. The multiple gap and the margin gap run in the same direction. A reader who wants a re-rating case has to believe Sanmina's mix moves toward Celestica's, which is a different claim from the one the 0.32 PEG makes.
What the multiple assumes. Consensus revenue for fiscal 2027 is $16.70 billion and consensus earnings per share is $14.08. 3 At the 55.1 million diluted shares reported for the June quarter, $14.08 of earnings is $776 million of net income. At the nine-month tax rate of 28.5% that is $1,085 million before tax, and adding back about $90 million of annual net interest gives $1,175 million of operating income. That is 7.0% of $16.70 billion. 8
So Friday's price discounts the top of the 6% to 7% frame management gave, with the June quarter's 8.0% treated as a high point. Each percentage point of operating margin on $16.70 billion of revenue is worth about $2.17 of earnings per share. At 6.0% the shares trade at 14.8 times; at 8.0%, 10.9 times.
Three of the four analysts rate the shares Hold. J.P. Morgan kept that rating on October 12, 2026 and lifted its target to $270 from $260. Bank of America kept Hold and cut to $270 from $280 on July 28. Argus kept Buy at $260 in April. 3
Growth catalysts
The company has guided fiscal 2027 above $16 billion. On the July call management said it was confident of more than $16 billion of revenue in fiscal 2027, with growth accelerating through the year and continuing into fiscal 2028. Consensus sits at $16.70 billion. 912
Core bookings exceed what was shipped. Management put core book-to-bill above 1.1 in the June quarter and named new customer wins in both the core business and ZT. 12
Capacity is being added inside the acquired business. Management described incremental power, liquid-cooling, test-cell and automation capacity, a three-phase integration plan, and customer validation work with AMD and other partners. 912
Vertical integration is how management describes the margin story. The July deck lists expanding the addressable market through vertical integration and engineering, and the call detailed investment in metal fabrication, circuit boards and power systems. Segment gross margins moved in the same direction: Integrated Manufacturing Solutions went from 7.5% to 10.2% year over year. 9
A $600 million buyback is authorised. The board approved it in April 2026, and the company spent $239.2 million on repurchases in the first nine months, against $113.9 million in the same period a year earlier. 711
The non-AI end markets are growing too. Industrial, energy, medical, defence and automotive sales rose 4.8% in the June quarter, and management pointed to energy systems for AI data centres as one place that could accelerate in fiscal 2027. 9
Monitorable risks
1. One third of revenue arrives on the customer's schedule. ZT was 31% of June-quarter revenue, after $1.88 billion in the March quarter, and the fiscal 2026 guide implies $0.75 billion to $0.95 billion in the September quarter. Trigger: ZT revenue below $0.75 billion in that report, or fiscal 2027 revenue guidance under $16 billion. Monitoring horizon: the fiscal fourth-quarter report in early November, then every quarter after it. 89
2. Ten customers made 62% of June-quarter sales. A year earlier the top ten made 53%. One customer passed 10% of net sales in the June quarter and two passed it over the nine months, while no customer reached 10% in the prior-year periods. Trigger: the top-ten share above 70%, or one customer above 20%, in any quarterly filing. Monitoring horizon: the concentration footnote of each 10-Q. 8
3. The 8.0% margin quarter carried one-off engineering revenue. Management's long-term operating margin range is 6% to 7%, and the September quarter is guided to 7.5% to 8.0%. Trigger: a September-quarter margin below 7.5%, or a fiscal 2027 margin guide below 7%. Monitoring horizon: each quarterly release and the guidance slide beside it. 712
4. Mexico still makes 40% of Americas output, and the company names tariffs as a risk. Mexico supplied about $957 million of June-quarter sales and holds $333.0 million of the company's long-lived assets. Sanmina's own safe-harbour statement lists changes in tariffs and trade policy among the things that could move its costs, supply chain and customer demand. Trigger: a new tariff on electronics assembled in Mexico, or a sharp fall in Mexico's share of Americas sales. Monitoring horizon: trade-policy announcements and the quarterly geographic disclosure. 78
5. Growth is consuming the cash it produces. Inventories rose to $3.15 billion from $1.99 billion a year earlier and receivables to $1.99 billion from $1.40 billion, while customer advances for raw materials reached $944 million. June-quarter free cash flow was $23.7 million against $342 million in March. Trigger: negative free cash flow in the September quarter, or inventory growing faster than revenue for two quarters. Monitoring horizon: the cash-flow statement in each release. 78
6. The balance sheet carries $2.2 billion of term loans and a $450 million earnout. Cash of $1.84 billion leaves net debt near $0.36 billion, low against $865 million of trailing EBITDA. Interest cost $32.5 million in the June quarter against $5.0 million a year earlier. Trigger: net debt above 1.5 times trailing EBITDA, or earnout payments beyond the $111 million the liability was first valued at. Monitoring horizon: the debt note of each 10-Q and the contingent-consideration disclosure. 810
Next reporting checkpoint
The fiscal fourth quarter, ended October 3, 2026, is the next hard test. Sanmina has not announced the date; StockAnalysis estimates November 2, 2026, and the consensus calendar carrying the estimates below dates the report November 9. 17
- Consensus for the quarter: revenue of $3.55 billion and non-GAAP earnings per share of $3.33, against the company's guide of $3.3 billion to $3.6 billion and $3.05 to $3.35. 7
- Fiscal 2027 revenue guidance against the $16 billion floor management has repeated and the $16.70 billion consensus. 312
Four things to check in that report:
- ZT revenue against the $0.75 billion to $0.95 billion the annual guide implies. The company calls $5 billion to $6 billion an annualised run-rate; the September quarter is where that claim either holds or waits for fiscal 2027.
- Non-GAAP operating margin against the 7.5% to 8.0% guide, and whether the engineering-services revenue that lifted June's margin is still in the number.
- Core Sanmina growth after 7.3% in March and 17.0% in June, against the 12.6% full-year core guide.
- Free cash flow and inventory, after a quarter that produced $23.7 million of free cash flow on $3.46 billion of sales.
Watchlist conclusion
Sanmina passes all four hard filters on the sources cited here: a $9.42 billion market capitalisation, 58.56% trailing revenue growth, positive trailing operating cash flow of $901.06 million, and a PEG of 0.32 that a second vendor puts at 0.51. 12
The filter that needs the most testing here is the growth one. Of the $4.71 billion increase in trailing revenue, ZT supplied about $4.05 billion, or 86%. The core business supplied the other $0.66 billion, and at the full-year guide it grows 12.6%, with an acceleration from 7.3% to 17.0% across two quarters. That is a second growth story with its own record, and it is the one a reader can follow quarter by quarter.
On forward earnings Sanmina trades in line with Jabil and Flex, and at a wide discount to Celestica. Consensus earnings assume a 7.0% operating margin, at the top of management's own 6% to 7% frame. Two numbers settle the next step: ZT revenue for the September quarter, which the guide puts at $0.75 billion to $0.95 billion, and a non-GAAP operating margin that holds at 7.5% or better. If both arrive, the case is a contract manufacturer that bought an AI-infrastructure business at a normal multiple while its core sped up. If either misses, the 8.0% June quarter was the peak of a margin story that has not happened yet.
One mechanical note for anyone tracking this screen: at $9.42 billion, a 6.2% rise takes Sanmina past the $10 billion ceiling and off this channel's list.
This article reports figures and company statements as published. It is not investment advice, and it is not a recommendation to buy or sell any security.
References
- 1StockAnalysis — Sanmina statistics
stockanalysis.com
- 2Finviz — Sanmina quote
finviz.com
- 3StockAnalysis — Sanmina forecast
stockanalysis.com
- 4StockAnalysis — Sanmina quarterly financials
stockanalysis.com
- 5
- 6StockAnalysis — Sanmina cash flow statement
stockanalysis.com
- 7
- 8
- 9Sanmina — Q3 fiscal 2026 earnings presentation
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- 10
- 11
- 12
- 13Finviz — Celestica quote
finviz.com
- 14Finviz — Flex quote
finviz.com
- 15Finviz — Jabil quote
finviz.com
- 16Finviz — Plexus quote
finviz.com
- 17StockAnalysis — Sanmina overview
stockanalysis.com
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