The Short Answer
Sanmina stock (SANM) is qualitatively halal because its core business is generally permissible, but the current quantitative result depends on methodology. The March 28, 2026 filing passes the known FTSE and Malaysia asset ratios, while the examined MSCI receivables test fails.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-28; calculated 2026-07-15.
2,171.762 / 9,669.089
1,575.517 / 9,669.089
3,805.261 / 9,669.089
8.433 / 4,013.271
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 22.46%, liquidity/assets is 16.29%, receivables-plus-cash/assets is 39.35% and disclosed interest income is 0.21%; known ratios pass the examined FTSE limits, while business activity remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt/assets and liquidity/assets pass the examined limits, but receivables-plus-cash/assets is 39.35%, above the examined MSCI 33.33% total-assets limit; this is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 22.46% and identifiable liquidity/assets is 16.29%, below the examined Malaysia limits; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A licensed historical market-cap series is not stored.
Business-activity disclosure
Sanmina provides integrated electronics manufacturing, engineering and supply-chain services to communications, cloud, industrial, medical, defense and automotive customers. General-purpose contract manufacturing is generally permissible, but customer end-use and program-level revenue are not reduced to a universal prohibited-revenue numerator.
Limitation: The filing does not classify every customer contract, defense or medical end use by a universal Sharia category; activity remains qualitative.
Purification
Sanmina discloses $8.433 million of interest income for the quarter, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Sanmina's March 28, 2026 Form 10-Q.
- Interest-bearing debt is $172.000 million of short-term debt plus $1,999.762 million of long-term debt; operating liabilities are excluded.
- Cash and cash equivalents are $1,575.517 million; no separate interest-bearing securities balance is identified in the balance sheet.
- Net accounts receivable is $2,229.744 million and first-quarter net sales are $4,013.271 million.
- The filing reports $8.433 million of interest income for the quarter; no fixed purification percentage is prescribed.
- Electronics manufacturing, design and supply-chain services are generally permissible, while defense, medical, communications and customer end-use revenue remain qualitative.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Providing contract electronics manufacturing and engineering services is generally permissible. Sanmina carries term debt, substantial receivables and defense, medical and communications end-market exposure; customer end use and prohibited-revenue classification remain qualitative.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Sanmina's Business Activity
Sanmina manufactures electronics on behalf of original-equipment makers. Its services include:
- Electronics manufacturing: Printed circuit boards and assemblies
- Systems integration: Complex product build and test
- Supply-chain & design: Engineering and logistics services
Providing these manufacturing and engineering services is permissible at the activity level — it is a general-purpose industrial-technology service.
Concerns to Be Aware Of
1. Debt Ratio
Sanmina reports $2,171.762 million of interest-bearing debt. Debt is 22.46% of total assets in the filing-based calculation; market-cap denominators are not calculated here.
2. Defense Exposure
Sanmina derives a portion of revenue from defense and aerospace programs. Investors who avoid defense-linked exposure should evaluate this end-market mix, though contract manufacturing is a general-purpose service rather than weapons production.
3. Receivables & Concentration
Receivables plus cash are 39.35% of total assets. That passes the examined FTSE 50% limit but fails the examined MSCI 33.33% limit; customer concentration remains a qualitative concern.
Filing-Based Ratios (March 28, 2026)
Based on Sanmina's Form 10-Q:
- Debt / Assets: 22.46%
- Cash + interest-bearing securities / Assets: 16.29%
- Receivables + cash / Assets: 39.35%
- Disclosed interest income / Revenue: 0.21%
Methodology Interpretation
FTSE and Malaysia known asset ratios pass, while the examined MSCI receivables test fails. This is a calculation against named methods, not an index-membership claim or universal religious certification.
Bottom Line
Sanmina (SANM) has a generally permissible manufacturing business, but the current overall result is methodology-dependent: known FTSE and Malaysia asset ratios pass while the examined MSCI receivables test fails. Investors should apply their chosen methodology and obtain qualified scholarly guidance on defense, medical and customer end-use exposure.
For Muslim investors seeking technology-manufacturing exposure, SANM sits alongside other halal-screened names like Celestica (CLS) and Fabrinet (FN).
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