Business Analysis of Sanmina

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Sanmina

Business Overview

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. The company offers product design and engineering solutions comprising concept development, detailed design, prototyping, validation, preproduction, and manufacturing design release; manufacturing solutions of components, subassemblies, and complete systems; final system assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services. It also provides interconnect systems, such as printed circuit board fabrication, backplane, and cable assemblies; and mechanical systems, including enclosures, precision machining, and plastic injection molding; non-volatile DIMMs, solid state drives, and DRAM solutions; defense and aerospace products; storage products; and optical and radio frequency modules. The company offers its services to original equipment manufacturers in the communications networks, computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, energy and clean technology, and automotive industries. The company was formerly known as Sanmina-SCI Corporation and changed its name to Sanmina Corporation in November 2012. Sanmina Corporation was founded in 1980 and is headquartered in San Jose, California.

Sanmina

Sanmina


R&P Rank: 422
Sector: Industrial Goods & Services
Industry:Electronic Equipment & Parts
H.Q Location:California
Website: www.sanmina.com
Company Address:
2700 N FIRST ST, SAN JOSE CA 95134
Ph:408-964-3500

Business Analysis of Sanmina

The Industrial Goods & Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Sanmina compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Sanmina to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Sanmina with an interactive chart.

  1. Revenue Growth: Sanmina reported a revenue growth of 1.7% year-on-year during 2016. Electronic Equipment & Parts Industry grew at 6.0% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Sanmina spent 92.1% of its total revenues on COGS. Electronic Equipment & Parts industry average (COGS share of revenue) in the same period was 76.0%
  3. R&D share of Revenues: As a percentage of revenue, Sanmina spent 0.6% of its total revenues on R&D. Electronic Equipment & Parts industry average R&D spending in the same period was 2.6%
  4. SG&A share of Revenues: As a percentage of revenue, Sanmina spent 3.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Electronic Equipment & Parts industry average SG&A spending in the same period was 14.4%
  5. Inventory share of Revenues: As a percentage of revenue, Sanmina spent 14.6% of its total revenues on Inventories. Electronic Equipment & Parts industry average Inventory spending in the same period was 13.2%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Sanmina invested 17.3% of its total revenues on Accounts Payable (A/P) Electronic Equipment & Parts industry average Accounts Payable investment in the same period was 12.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Sanmina invested 15.0% of its total revenues on Accounts Receivable (A/R). Electronic Equipment & Parts industry average Accounts Receivable investment in the same period was 12.4%
  8. PP&E share of Revenues: As a percentage of revenue, Sanmina invested 9.5% of its total revenues on Property, Plants, and Equipments (PP&E). Electronic Equipment & Parts industry average PPE investment in the same period was 12.0%
  9. Intangibles share of Revenues: Sanmina Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Sanmina Net Margins in the year 2016 were 2.9%. Electronic Equipment & Parts industry average Net Margins in the same period were 3.1%

Sector and Industry Association of Sanmina

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Sanmina is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Electronic Equipment & Parts Industry.

Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:

  • Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
  • Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
  • Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
  • Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
  • Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.

Industry Ranking of Sanmina

With $6.5 billion revenues, Sanmina ranked number 1 of all the companies in the US Electronic Equipment & Parts industry. There were a total of 12 public companies in the US Electronic Equipment & Parts industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electronic Equipment & Parts industry by revenues during 2016 were:

  1. Sanmina ($6.5 billion)
  2. Allegion ($2.2 billion)
  3. Cimpress ($1.8 billion)
  4. Bel Fuse ($500.2 million)
  5. Key Tronic ($485 million)
  6. Sparton ($419.4 million)
  7. Ichor Holdings ($405.7 million)
  8. Novanta ($384.8 million)
  9. Vishay Precision Group ($224.9 million)
  10. Electro Scientific Industries ($184.4 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Sanminaand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of sanmina

Allegion (ALLE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Allegion Plc with $2 billion revenues in the year 2016 was the number 2 Electronic Equipment & Parts company. Read this report to know the top competitors of Allegion and identify growth and cost optimization opportunities of Allegion

Cimpress (CMPR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Cimpress N.V. with $2 billion revenues in the year 2016 was the number 3 Electronic Equipment & Parts company. Read this report to know the top competitors of Cimpress and identify growth and cost optimization opportunities of Cimpress

Bel Fuse (BELFA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Bel Fuse Inc with $500 million revenues in the year 2016 was the number 4 Electronic Equipment & Parts company. Read this report to know the top competitors of Bel Fuse and identify growth and cost optimization opportunities of Bel Fuse

Key Tronic (KTCC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Key Tronic Corp with $485 million revenues in the year 2016 was the number 5 Electronic Equipment & Parts company. Read this report to know the top competitors of Key Tronic and identify growth and cost optimization opportunities of Key Tronic

Sparton (SPA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Sparton Corp with $419 million revenues in the year 2016 was the number 6 Electronic Equipment & Parts company. Read this report to know the top competitors of Sparton and identify growth and cost optimization opportunities of Sparton

Ichor Holdings (ICHR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Ichor Holdings, Ltd. with $406 million revenues in the year 2016 was the number 7 Electronic Equipment & Parts company. Read this report to know the top competitors of Ichor Holdings and identify growth and cost optimization opportunities of Ichor Holdings

Revenues Analysis

Sanmina (SANM) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Sanmina Corp (SANM) from 2012 to 2016. Sanmina generated a total of $6.5 billion revenues during 2016. Sanmina reported a revenue growth of 1.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in October.

Sanmina (SANM) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Sanmina Corp (SANM) from 2002 to 2016. Sanmina generated a total of $6.5 billion revenues during 2016. Sanmina reported a revenue growth of 1.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in October.

Sanmina (SANM) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Sanmina Corp (SANM) revenue growth with Electronic Equipment & Parts industry growth during the last five years from 2012 to 2016. Sanmina reported a revenue growth of 1.7% year-over-year during 2016. The Electronic Equipment & Parts industry growth was 6% year-over-year during 2016. Sanmina growth was slower than the industry during 2016.

Profit Analysis