Sanmina's latest quarterly results demonstrate the company's strong operating momentum. Revenue grew 14.9% year-over-year in the most recent quarter, accelerating from 10.6% growth in the prior quarter. Net margins expanded from 1.9% a year ago to 2.7% most recently, while return on invested capital (ROIC) reached a robust 21.2%. Free cash flow generation has also been impressive, with the company producing $650 million over the past four quarters. These financial metrics demonstrate Sanmina's ability to drive profitable growth and convert that into strong cash flow. The data suggests the company is executing well operationally, gaining market share, and maintaining pricing power. Sanmina's high ROIC of over 20% indicates the business is generating returns well above its cost of capital, a hallmark of a high-quality, compounding enterprise. Given Sanmina's combination of accelerating revenue, expanding margins, robust cash flow, and high ROIC, I believe the company is well-positioned to continue delivering attractive returns for shareholders. The stock's current valuation, in my view, does not fully reflect Sanmina's strong fundamental profile and earnings power. I rate SANM a buy with a high conviction of 9/10.

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