$Sanmina (SANM.US)$In the analysis two years ago, it was rul...

The American company, which was listed in 1993, mainly provides comprehensive production solutions and parts services. The main markets are Mexico, Asia Pacific and the United States, and the current price is 61.27.

In the past 5 years, with the exception of 2020 and 2021, revenue grew at an average rate of 4.7%, operating profit shrank in 2020, and grew in the remaining 4 years. The 5-year average growth rate was 20%, and net profit grew at an average rate of 23% in the past 4 years. Earnings per share grew 27% due to share buybacks. Interest expenses account for 4.9% of operating profit in 2023, and the interest burden is not high. The gross margin increased from 7.2% to 8.3% in the past 5 years, and the return on net assets increased from 9% to 15.5%.

24Q1 revenue and operating profit contracted for the second consecutive quarter, with revenue shrinking by 20.4%, operating profit shrinking by 30.4%, and net profit shrinking sharply by 36.5%.

The balance ratio has declined from 57.9% to 52.4% over the past 5 years, and both total assets and net assets have increased. The ratio and growth rate of accounts receivable are normal. Inventory increased sharply from 1.04 billion yuan to 1.68 billion yuan in 2022. Fortunately, it began to decline in 2023. Currently, it is 1.39 billion, which is quite normal.

Long-term loans of $308 million, accounting for 13.6% of the net assets of $2,273 million, and the leverage ratio is not high. Treasury stocks reached 1.6 billion.

It currently has 632 million dollars in cash, a current ratio of 1.9, and a moving ratio of 1.2.

Over the past 5 years, net operating cash flow has continued to be higher than net investment, generating a large number of shareholders' surpluses.

Currently, the price-earnings ratio is 11.8 and the price-earnings ratio is TTM 13.2. Considering the severe contraction in the first quarter, wait and see.