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FORM vs SANM

FORM
FormFactor, Inc.
BEARISH
Price
$121.07
Market Cap
$9.44B
Sector
Technology
AI Confidence
85%
SANM
Sanmina Corporation
NEUTRAL
Price
$174.09
Market Cap
$9.51B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
FORM
178.04
SANM
41.65
Forward P/E
FORM
54.26
SANM
14.32
P/B Ratio
FORM
9.08
SANM
3.82
P/S Ratio
FORM
12.02
SANM
1.02
EV/EBITDA
FORM
91.61
SANM
17.76

Profitability

Gross Margin
FORM
39.18%
SANM
8.49%
Operating Margin
FORM
13.55%
SANM
3.69%
Profit Margin
FORM
6.93%
SANM
2.47%
ROE
FORM
5.48%
SANM
9.72%
ROA
FORM
3.31%
SANM
3.62%

Growth

Revenue Growth
FORM
13.6%
SANM
59.0%
Earnings Growth
FORM
131.8%
SANM
-23.3%

Financial Health

Debt/Equity
FORM
0.03
SANM
0.89
Current Ratio
FORM
4.5
SANM
1.7
Quick Ratio
FORM
3.25
SANM
0.97

Dividends

Dividend Yield
FORM
--
SANM
--
Payout Ratio
FORM
0.0%
SANM
0.0%

AI Verdict

FORM BEARISH

FormFactor exhibits exceptional operational health with a Piotroski F-Score of 8/9 and a negligible debt-to-equity ratio of 0.03. However, the stock is currently experiencing a severe valuation disconnect, trading at $121.07—nearly 6x its growth-based intrinsic value ($20.06) and significantly above the analyst target price of $86.89. While earnings growth is explosive (131.8% YoY), the P/E ratio of 178.04 is unsustainable. The combination of aggressive insider selling and a bearish technical trend suggests the current price is driven by momentum rather than fundamental value.

Strengths
Strong operational health (Piotroski F-Score 8/9)
Exceptional liquidity with a Current Ratio of 4.50
Minimal leverage (Debt/Equity 0.03)
Risks
Extreme overvaluation (P/E 178.04, P/S 12.02)
Significant gap between current price ($121.07) and Intrinsic Value ($20.06)
Bearish insider sentiment with 15 sell transactions and 0 buys
SANM NEUTRAL

Sanmina Corporation exhibits strong operational health with a Piotroski F-Score of 7/9, indicating robust financial stability. However, there is a severe disconnect between the current market price ($174.09) and deterministic value metrics, with the Graham Number at $65.45 and Intrinsic Value at $29.26. While explosive revenue growth (59%) and a low PEG ratio (0.87) suggest high future potential, the negative earnings growth and bearish insider activity create significant headwinds. The stock is currently trading at a massive premium, likely pricing in aggressive future expansion that is not yet reflected in the bottom line.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Explosive YoY revenue growth of 59.00%
Attractive PEG ratio of 0.87, suggesting undervaluation relative to growth
Risks
Extreme valuation gap compared to Graham Number and Intrinsic Value
Negative earnings growth (-23.30% YoY) despite surging revenues
Very thin profit margins (Profit Margin: 2.47%, Gross Margin: 8.49%)

Compare Another Pair

FORM vs SANM: Head-to-Head Comparison

This page compares FormFactor, Inc. (FORM) and Sanmina Corporation (SANM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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