Sanmina (SANM) is a top earnings mover this quarter with shares already +14% YTD and a steady winner with shares rising 48% over the past year.

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services operating in two businesses, Integrated Manufacturing Solutions; and Components, Products and Services. Industrial, Energy, Medical and Auto accounts for 63% of revenues while Communication and Cloud at 37%. It does have customer concentration with the top 10 customers accounting for 50.1% of revenues.

SANM has a $4.7B market cap and trades 12.35X Earnings, 7.6X EBITDA and 25.5X FCF with a very strong balance sheet. SANM forecasts are for steady 7-8% topline growth with 13-20% annual EPS growth, a healthy growth profile. SANM appears cheap but valuation is at the 100^th percentile as it is a low margin name, EBITDA margins of 6.1%, so any re-rate higher would need to see margin expansion as a driver. SANM has authorized an additional $300M for buybacks. SANM is focused on market diversification with higher margin opportunities, a key area it is investing. Sanmina provides industry-leading capabilities, end-to-end solution from design to systems for cloud infrastructure and is seeing AI drive opportunities around high-performance networks and optical businesses.