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Company Estimates & Opinions Sanmina Corp 25-Nov-2015 NASDAQ/NM Symbol SANM In S&P SmallCap 600 S&P Opinions S&P...

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Company EstmaTes & Opinions Sanmina Corp 25-Nov-2015 • NASDAQ/NM • Symbol SANM • In S&P SmallCap 600 S&P Opinions S&P S±ARS Ranking 3 Fair Value Ranking/Price VolatliTy AVERAGE ±echnical Evaluaton BULLISH since 11/15 Insider ActviTy Earnings/Dividend Rank B- Relatve STrengTh Rank 69% S&P EstmaTes S&P EPS EstmaTe 2015 $2.34 S&P EPS EstmaTe 2016 $2.48 P/E on S&P EsT. 2015 5.1 Wall STreeT AnalysTs' Earnings Consensus New Consensus Old Consensus High EstmaTe Low EstmaTe Buy/Holds Q1 0.58 0.58 0.60 0.56 6 2015 0 2016 2.35 2.35 2.48 2.09 7 NexT EPS ReporT DaTe LaTe January HisT. 5-yr Earnings GrowTh 24.37%
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Wall Street Analysts' Opinions Buys Buy/Holds Holds Hold/Sells Sells 2 1 2 2 1
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Company Quote Sanmina Corp 25-Nov-2015 • NASDAQ/NM • Symbol SANM • In S&P SmallCap 600 Last (01:16 PM) 22.91 Net Change 0.25 Today's Volume 248,028 Percent Change 1.10 Avg. Daily Volume 784,638 Bid 22.90 Open 22.70 Ask 22.92 Day High 22.91 52 Week High 25.64 Day Low 22.56 52 Week Low 17.55 Quotes are delayed 20 minutes. As your agreement for the receipt and use of market data provides, the securi±es markets and this service: (1) reserve all rights to the market data that they make available; (2) do not guarantee that data; and (3) shall not be liable for any loss due either to their negligence or to any cause beyond their reasonable control.
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CompetTors (Covered by S&P) Sanmina Corp 25-Nov-2015 • NASDAQ/NM • Symbol SANM • In S&P SmallCap 600 Company Name ±icker S&P S±ARS Ranking P/E Yield % BeTa ±E ConnectviTy ±EL 2 11.40 1.96 1.62 FlexTronics InTl FLEX 4 12.40 0.00 1.46 ±rimble Navigaton LTd ±RMB 4 38.90 0.00 1.56 Jabil CircuiT JBL 3 17.60 1.26 1.69 Sanmina Corp SANM 3 5.10 0.00 2.21 Celestca Inc CLS 3 36.40 0.00 1.47 Plexus Corp PLXS 3 13.50 0.00 2.04 Benchmark ElecTronics BHE 2 13.90 0.00 1.31
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ACCT 212 I NDIVIDUAL L EARNING P ROJECT I NSTRUCTIONS This project will allow you the opportunity to explore a company’s annual report and become familiar with the items it contains. Choose a company from Standard & Poor’s Net Advantage whose company’s name begins with the same letter as your last name. Locate the most recent annual report, either from the Liberty University library’s access to Standard & Poor’s website, the EDGAR database ( ), or the company’s website. Once located, open Individual Learning Project Questions document and add your answers underneath each question. Do not delete the questions . Questions 1–49 must be answered with Microsoft Word. Your answers for these do not need to be in complete sentences. Questions 50–52 must be answered in Microsoft Excel and your answers must include formulas. Questions 53–55 must be answered with complete sentences and justification within the Word document. Both documents (Word and Excel) must be uploaded into the Assignment link. To access the Liberty University Library online resources from off campus: · From the Blackboard log-in page, right-hand side “Quicklinks” pull-down menu -- choose “Library.” · Click log-in button. Off-site access cannot be gained unless the user successfully completes the log-in. · This must take you to the “Library Research Portal”; if not, click on “Portal.” · Click on the “databases” tab. · Click on the “Databases by Letter,” and select the letter “S.” · Scroll down until you see “Standard & Poor’s NetAdvantage.” · Click on the link and then you may begin your search. This assignment is due by 11:59 p.m. (ET) on Monday of Module/Week 7.
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ACCT 212 I NDIVIDUAL L EARNING P ROJECT Q UESTIONS Name_______________________________ General Information: 1. What is the name of your corporation? Sanmina Corp 2. Where are the corporate headquarters? 3. What is the corporation’s fiscal year end? 4. What are the primary products or services of the corporation? 5. Graph the high and low price of the company’s stock for each quarter of the last two years. What was the high and what was the low? 6. Who is the company’s transfer agent and where are they located? 7. Who are your company’s competitors? Market Information : 8. On which stock exchange is your corporation’s stock traded? 9. What is the current market price of their stock? 10. What is the ticker symbol used to identify your corporation on the stock exchange? Internet Information : 11. What is the Internet address of your corporation? Be sure it appears as a hyperlink. 12. Is the corporation’s Annual Report online? 13. Are its financial statements on-line? 14. Is your company listed on 15. How long is your company’s 10-K report at the Securities and Exchange Commission website (Edgar Database)? Cash Flow and Retained Earnings : 16. List the amount of cash flows from each of the 3 activities: Operating, Investing, and Financing for the 2 most recent years. What was the increase or decrease in cash for each of these years? 17. Were there any Non-Cash Investing/Financing Transactions? Describe the type and amount. 18. What is the dollar difference between accrual net income and Cash provided by Operations? 19. What investing activity provided the largest inflow of cash in the current year? 20. What investing activity used the largest amount of cash in the current year? 21. What financing activity provided the largest inflow of cash in the current year? 22. What financing activity used the largest amount of cash in the current year? 23. Does the company have sufficient cash inflows from the appropriate category? Describe any problems the company many experience with cash flow from your analysis of the cash flow statement. Page 1 of 3
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ACCT 212 24. Show the change in Retained Earnings for the 2 most recent years. What was net income for each year? How much was paid out in dividends each year? 25. Were the dividends on common stock and/or preferred stock? What was the amount of each? 26. Did Retained Earnings change for any reasons other than net income or dividends? Explain. 27. What classes of stock does your company have? 28. How many shares of each class of stock are authorized, how many are issued, and how many are outstanding? 29. Does your company have any treasury stock? How many shares and what dollar amount? 30. What is the par or stated value of each of your company’s stocks? Footnote Disclosures : 31. How many footnote disclosures does your company have? 32. How many significant accounting policies are listed under its Summary of Significant Accounting Policies? 33. What does it include as Cash and Cash Equivalents? 34. What method does it use to value Inventory? 35. What method(s) does it use to depreciate its assets? 36. Does it have any leased assets? If yes, describe them. 37. What policies does it have in regard to Foreign Currency Translations? 38. Describe any pending lawsuits in which it is involved. 39. Provide its Earnings per Share for the 2 most recent years? Report of the Independent Auditor(s) : 40. Who is/are your company’s auditor(s)? 41. Where are they located? 42. Does the auditor(s) give a qualified opinion, an unqualified opinion, a disclaimer of opinion, or an adverse opinion? What does that opinion mean? Is it good? 43. What is the auditor’s responsibility in regard to the financial statements? 44. What is management’s responsibility in regard to the financial statements? 45. What financial statements were included in the auditor’s opinion? 46. Did the auditor believe that the statements were presented fairly? Management’s Report : 47. Who bears the responsibility for the integrity and the objectivity of the financial statements? 48. What does management say they are doing to assure the public that the financial information is reliable? 49. What is the responsibility of the Audit Committee of the Board of Directors? Page 2 of 3
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S&P Capital IQ Equity Analyst K. Snyder GICS Sector Information Technology Sub-Industry Electronic Manufacturing Services Summary This company provides customized integrated manufacturing services to original equipment manufacturers in the electronics industry. Key Stock Statistics (Source S&P Capital IQ, Vickers, company reports) 52-Wk Range $25.64– 17.55 S&P Oper. EPS 2016 E 2.34 Market Capitalization(B) $1.866 Beta 2.21 Trailing 12-Month EPS $4.41 S&P Oper. EPS 2017 E 2.48 Yield (%) Nil S&P 3-Yr. Proj. EPS CAGR(%) NA Trailing 12-Month P/E 5.3 P/E on S&P Oper. EPS 2016 E 9.9 Dividend Rate/Share Nil S&P Quality Ranking B- $10K Invested 5 Yrs Ago $20,949 Common Shares Outstg. (M) 80.5 Institutional Ownership (%) 98 Price Performance D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J 2011 2012 2013 2014 2015 3 4 3 Down Up No Change Volume 12-Mo. Target Price Below Avg. Relative Strength 30-Week Mov. Avg. Above Avg. STARS GAAP Earnings vs. Previous Year 10-Week Mov. Avg. 13 20 Share Price 10 15 20 25 0 2 4 6 Volume(Mil.) 5 1 Past performance is not an indication of future performance and should not be relied upon as such. Analysis prepared by Equity Analyst K. Snyder on Nov 05, 2015 05:17 PM, when the stock traded at $24.48 . Highlights We see revenue increasing 1.7% in FY 16 (Sep.) and 4.1% in FY 17, following 2.6% growth in FY 15. SANM reported Sep-Q EPS of $0.57 as sales dropped 3%, due to a larger-than-expected fall in the Communications segment. Demand in most end-markets remains stable, and we are encouraged by recent customer diversification. We look for particular strength from the De- fense/Industrial/Medical space as well as from Computing & Storage end-markets. We see flat sales within Communications Networks by the end of 2015, but see growth potential over time. Product ramp-ups and expanding customer base will help revenue growth over the coming quarters. Gross margins will remain relatively stable in FY 16 and FY 17, compared to an 7.8% margin in FY 15. Higher volume and healthy product mix should support results. Increased efficiencies from plant consolidations and more stringent cost controls should help operating margins. We look for operating EPS of $2.34 in FY 16, in- creasing to $2.48 for FY 17 aided by share re- purchases. Our estimates exclude restructur- ing-related and other various one-time and non-cash charges. Investment Rationale/Risk Our Hold recommendation is based on valua- tion, and fundamentals seeing modest improve- ment. SANM's visibility for many of its end- markets is low, given that it operates near the bottom of the supply chain. SANM's relatively large exposure to the growing telecommunica- tions segment is a long-term positive, but will continue to be a short-term headwind. Cost- containment efforts and a more favorable sales mix will likely aid operating margins in the com- ing quarters. Debt restructuring and improving cash flow should continue to strengthen SANM's balance sheet. Shares are fairly val- ued. Risks to our recommendation and target price include weaker end-market demand than we project, the potential loss of major customers and any complications with restructuring. The positions of chairman and CEO are held by the same individual, a corporate governance con- cern. Our 12-month target price of $24 is based on a P/E of 10.4X to our fiscal year 2016 EPS, a slight discount to peers, warranted given its below average revenue growth. Analyst's Risk Assessment LOW MEDIUM HIGH Our risk assessment reflects the volatility of SANM's business model, our concerns about vulnerability to market share losses and the company's high debt level relative to its peer group. Revenue/Earnings Data Revenue (Million $) 1Q 2Q 3Q 4Q Year 2015 1,671 1,528 1,539 1,637 6,375 2014 1,448 1,477 1,605 1,686 6,215 2013 1,495 1,428 1,489 1,505 5,917 2012 1,502 1,463 1,549 1,579 6,093 2011 1,662 1,569 1,674 1,697 6,602 2010 1,478 1,527 1,625 1,688 6,319 Earnings Per Share ($) 2015 0.26 0.17 0.29 3.78 4.41 2014 0.26 0.24 0.24 1.52 2.27 2013 0.01 0.25 0.22 0.44 0.93 2012 0.10 -0.02 0.11 1.96 2.16 2011 0.34 0.16 0.11 0.22 0.83 2010 0.74 0.12 0.26 0.38 1.48 Fiscal year ended Sep. 30. Next earnings report expected: Late January. EPS Estimates based on S&P Capital IQ Operating Earnings; historical GAAP earnings are as reported in Company reports. Dividend Data No cash dividends have been paid. Past performance is not an indication of future performance and should not be relied upon as such. Stock Report | November 21, 2015 | NNM Symbol: SANM | SANM is in the S&P SmallCap 600 Sanmina Corp S&P Capital IQ Recommendation HOLD Price $23.19 (as of Nov 20, 2015 4:00 PM ET) 12-Mo. Target Price $24.00 Report Currency USD Investment Style Small-Cap Blend Please read the Required Disclosures and Analyst Certification on the last page of this report. Redistribution or reproduction is prohibited without written permission. This document is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek independent financial advice regarding the suitability and/or appropriateness of making an investment or implementing the investment strategies discussed in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such investments, if any, may fluctuate and that the value of such investments may rise or fall. Accordingly, investors may receive back less than they originally invested. Investors should seek advice concerning any impact this investment may have on their personal tax position from their own tax advisor. Please note the publication date of this document. It may contain specific information that is no longer current and should not be used to make an investment decision. Unless otherwise indicated, there is no intention to update this document.
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Business Summary November 05, 2015 CORPORATE OVERVIEW. Sanmina Corp. (SANM), a provider of electronic manufacturing services (EMS), works with customers in a number of industries, including communications, enterprise computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, CleanTech and automotive. The company manages its operations as two businesses: Integrated Manufacturing Solutions and Compo- nents, Products and Services. Integrated Manufacturing Solutions consist of printed circuit board assem- bly and test, final system assembly and test, and direct-order-fulfillment. Components, products and services include interconnect systems (printed circuit board fabrication, back- plane and cable assemblies) and mechanical systems (enclosures, precision machining and plastic injec- tion molding). The company's products include memory and solid state drive (SSD) products from its Viking Technology division; defense and aerospace products from SCI Technology Inc. (SCI); and storage prod- ucts from its Newisys division and optical and RF (radio frequency) modules. SANM's services include de- sign, engineering, logistics, and repair services. MARKET PROFILE. We believe the EMS industry remains well positioned to capture new business from original equipment manufacturers (OEMs). This is due to our view that the cost advantages associated with the outsourcing model are beginning to be understood by potential participants. We think the benefits of this strategy are ample, with companies being able to reduce costs and reallocate resources toward their core competencies (e.g., marketing and research and development). We see a number of key trends emerging in the EMS landscape. For instance, OEMs have begun to limit the number of EMS providers with which they conduct business. We think this move results from cus- tomers' desire to streamline their operations. While in the past they may have utilized five or six vendors, many now seek to limit that total to one or two. We believe this development bodes well for larger EMS companies such as SANM, as their broad range of service offerings and worldwide presence enable them to fulfill an entire slate of customer requests, in our opinion. However, SANM faces larger rivals that might benefit even more from this industry trend toward consolidation. Seasonality in the company's business has historically been driven by customer and product mix, particu- larly in the end markets which its customers serve, with the first half of its fiscal year generally having the lowest revenue levels. For SANM's integrated manufacturing solutions business, the company faces competition from other ma- jor global EMS companies such as Benchmark Electronics, Celestica, Flextronics International, Jabil Cir- cuits, and Plexus. Customer concentration is high compared with many companies, but we view SANM's concentration as in line with EMS industry peers. In FY 14 (Sep.), no customer accounted for more than 10% of sales. The 10 largest customers accounted for over 50% of FY 14, FY 13, and FY 12 sales. Sales from international opera- tions were 83% of the total in FY 14, higher than the 82% in FY 13 and FY 12, and significantly higher than the 69% posted back in FY 07, reflecting a strategy to move production to lower-cost locations in Asia, Latin America and Eastern Europe. Potential advantages from running global operations include close proximity to customers and suppliers, and tax incentives. FINANCIAL TRENDS. In FY 10, SANM regained GAAP basis profitability, following annual losses for eight consecutive fiscal years with a number of charges related to goodwill writedowns and other restructuring activities. Goodwill was written down to nil at the end of FY 08, and the company took an impairment charge of $478 million. A one-for-six reverse split of the common shares became effective August 14, 2009. We believe the company is making efforts to improve its gross margins and operating income, as well as its inventory turnover and free cash flow generation. Long-term debt was $387 million at the end of FY 14, which was down from $563 million as of the end of FY 13. We still view the level of debt as significant. Corporate Information Investor Contact P. Bombino (408-964-3610) Office 2700 North First Street, San Jose, CA 95134. Telephone 408-964-3500. Fax 408-964-3440. Email [email protected] Website Officers Chrmn & CEO J. Sola EVP & CFO R.K. Eulau SVP & Cntlr D.R. Anderson Board Members N. R. Bonke E. A. Delaney J. G. Licata, Jr. W. Shortridge J. M. Ward M. J. Clarke J. P. Goldsberry M. M. Rosati J. Sola Domicile Delaware Founded 1989 Employees 0 Stockholders 1,098 Stock Report | November 21, 2015 | NNM Symbol: SANM Sanmina Corp Redistribution or reproduction is prohibited without written permission.
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Sanmina Corp 25-Nov-15 • NASDAQ/NM • Symbol SANM In S&P SmallCap 600 Revenues (Million $) for Fiscal Year Ending Sep. 2015 2014 2013 2012 2011 2010 2009 1Q 1,671 1,448 1,495 1,502 1,662 1,478 1,419 2Q 1,528 1,477 1,428 1,463 1,569 1,527 1,195 3Q 1,539 1,605 1,489 1,549 1,674 1,625 1,209 4Q 1,637 1,686 1,505 1,579 1,697 1,688 1,354 Year 6,375 6,215 5,917 6,093 6,602 6,319 5,177 Earnings Per Share ( $) for Fiscal Year Ending Sep. 2017 2016 2015 2014 2013 2012 1Q E0.57 0.26 0.26 0.01 0.10 2Q E0.54 0.17 0.24 0.25 -0.02 3Q E0.59 0.29 0.24 0.22 0.11 4Q E0.64 3.78 1.52 0.44 1.96 Year E2.48 E2.34 4.41 2.27 0.93 2.16 Income Statement (Million $). 2015 2014 2013 2012 2011 2010
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Net Inc. 377 197 79.3 180 68.9 122 Depr. 101 97.7 96.0 99 105 89.6 Int. Exp. 25.0 30.8 41.0 71.7 99 108 Ef. Tax Rate NM NM 23% NM 31% 12% Pretax Inc. 176 162 103 49.9 100 139 Oper. Inc. 310 309 257 269 339 300 Revs. 6,375 6,215 5,917 6,093 6,602 6,319 Other Financial Data (Million $). 2015 2014 2013 2012 2011 2010 Cash 412 470 403 410 640 593 Curr. Liab. 1,381 1,534 1,207 1,220 1,266 1,251 LT Debt424 387 563 860 1,182 1,241 % Ret. on Equity 27.3 16.9 7.7 20.8 9.6 20.3 Total Cap. 1,948 1,777 1,676 1,824 1,953 1,902 Total Assets 3,493 3,313 2,996 3,168 3,354 3,302 % Net Inc.o± Revs. 5.9 3.2 1.3 3.0 1.0 1.9
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Sanmina Corp 25-Nov-15 • NASDAQ/NM • Symbol SANM In S&P SmallCap 600 Key Stock StaTsTcs Dividend Rate Per Share ($) 0 Shares Outstanding (M)78.41 Ave. Daily Volume (M) 0.78 ±angible Book Value P/S ($) 19.4 Beta 2.2115 Shareholders 1,000 Market Cap ($M) 1776.65 InsTtuTonal Holdings (%) NM Yield (%) 0 12-month P/E 5.1
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