Sanmina Outlook: A Bearish Technical Picture Amid Mixed Fundamentals

Market SnapshotSanmina (SANM.O) is in a weak technical position with a falling price trend (-6.74%) and limited analyst optimism. Analyst ratings remain neutral, with no consensus, while internal diagnostic scores from the technical model suggest caution and bearish momentum.

News HighlightsRecent news includes: May 30 - Texas Instruments (TXN) participated in a strategic conference, discussing industrial and automotive sector growth. While not directly linked to Sanmina, such events highlight broader semiconductor sector dynamics that may impact Sanmina's business. May 29 - Restore Robotics used remanufactured surgical instruments in a human procedure. While unrelated to Sanmina, the trend toward cost-effective solutions in medical tech could indirectly benefit Sanmina's manufacturing segments. May 31 - Vodafone Idea announced a Rs 20,000 cr fundraise to support its 5G rollout. This underscores global capital-raising trends in tech, which may add pressure to Sanmina's cash flow metrics.

Analyst Views & FundamentalsAnalyst sentiment is mixed with a simple average rating of 3.00, while the historical performance-weighted rating is 0.00. There is no consensus among analysts, with only one active analyst (Ruplu Bhattacharya from B of A Securities) issuing a recent "Neutral" rating over the last 20 days. The analyst has a poor historical win rate (0.00%), and their latest call aligns with the current bearish price trend.

Key fundamental factors and internal diagnostic scores: Annualized return on equity (%) = 11.75%, with an internal diagnostic score of 3.00 – suggesting moderate performance. Price-to-cash flow (PCF) = 31.15, score 2.00 – indicating a relatively high valuation. Gross profit margin (GPM) = 8.87%, score 0.00 – a weak fundamental signal. Gross margin after R&D (GMAR) = 8.87%, score 2.00 – slightly better, but still low. Cash-up = -14.17%, score 2.00 – signaling poor cash generation. ROE (diluted) = 8.63%, score 2.00 – again, weak. Asset-MV = -17.01%, score 3.00 – pointing to asset underperformance.

Money-Flow TrendsSanmina is experiencing a negative overall money-flow trend, with all major capital groups (small, medium, large, and extra-large) showing inflow ratios below 0.50: Small inflow ratio = 0.498 Medium inflow ratio = 0.490 Large inflow ratio = 0.476 Extra-large inflow ratio = 0.497This suggests that both retail and institutional investors are cautious or unenthusiastic. The internal diagnostic fund-flow score of 7.83 (good) contrasts with the bearish technical and price trends, highlighting a potential divergence in short-term sentiment.

Key Technical SignalsSanmina’s technical indicators are heavily bearish, with five negative signals and zero bullish ones over the last five days: MACD Death Cross – score 1.62 (very weak internal signal). Bullish Engulfing – score 2.58 (neutral bias, but not reliable). MACD Golden Cross – score 2.80 (also bearish in this context). WR Overbought – score 3.40 (neutral, but not helpful in trending bear markets). RSI Overbought – score 6.20 (suggesting overvaluation but conflicting with downward trend). Marubozu White – score 3.08 (moderate, but bearish when followed by a death cross).

Recent chart patterns from Dec 9 to Dec 15, 2025, include repeated overbought signals mixed with bearish crossovers, indicating volatility and lack of clear direction.

ConclusionSanmina is in a weak technical position with a score of 3.28 (weak) and a clear bearish bias. While fundamentals remain mixed, the lack of analyst consensus and poor historical performance of the one active analyst add to the caution.

Actionable takeaway: Consider avoiding Sanmina for now. Wait for a clearer breakout or significant news, and monitor any follow-up from B of A Securities for a potential trend reversal signal.