BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
NYSE:BHE - New York Stock Exchange, Inc. - US08160H1014 - Common Stock - Currency: USD
Taking everything into account, BHE scores 6 out of 10 in our fundamental rating. BHE was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. BHE has only an average score on both its financial health and profitability. BHE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BHE had positive earnings in the past year.
In the past year BHE had a positive cash flow from operations.
Each year in the past 5 years BHE has been profitable.
The reported operating cash flow has been mixed in the past 5 years: BHE reported negative operating cash flow in multiple years.
1.2 Ratios
BHE's Return On Assets of 2.48% is fine compared to the rest of the industry. BHE outperforms 64.00% of its industry peers.
Looking at the Return On Equity, with a value of 4.79%, BHE is in the better half of the industry, outperforming 61.60% of the companies in the same industry.
BHE has a better Return On Invested Capital (5.68%) than 65.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHE is below the industry average of 9.38%.
The last Return On Invested Capital (5.68%) for BHE is above the 3 year average (5.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 4.79% | ||
| ROIC | 5.68% |
ROA(3y)2.95%
ROA(5y)2.31%
ROE(3y)6.1%
ROE(5y)4.68%
ROIC(3y)5.67%
ROIC(5y)4.78%
1.3 Margins
BHE has a Profit Margin (2.03%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BHE has grown nicely.
BHE has a Operating Margin of 4.21%. This is comparable to the rest of the industry: BHE outperforms 60.00% of its industry peers.
BHE's Operating Margin has improved in the last couple of years.
BHE has a worse Gross Margin (10.17%) than 78.40% of its industry peers.
In the last couple of years the Gross Margin of BHE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.21% | ||
| PM (TTM) | 2.03% | ||
| GM | 10.17% |
OM growth 3Y13.76%
OM growth 5Y18.87%
PM growth 3Y14.55%
PM growth 5Y18.21%
GM growth 3Y3.65%
GM growth 5Y4.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BHE is destroying value.
The number of shares outstanding for BHE has been increased compared to 1 year ago.
Compared to 5 years ago, BHE has less shares outstanding
The debt/assets ratio for BHE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.08 indicates that BHE is not in any danger for bankruptcy at the moment.
The Altman-Z score of BHE (3.08) is comparable to the rest of the industry.
The Debt to FCF ratio of BHE is 1.96, which is an excellent value as it means it would take BHE, only 1.96 years of fcf income to pay off all of its debts.
BHE's Debt to FCF ratio of 1.96 is fine compared to the rest of the industry. BHE outperforms 78.40% of its industry peers.
BHE has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BHE (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.64
WACC8.85%
2.3 Liquidity
BHE has a Current Ratio of 2.37. This indicates that BHE is financially healthy and has no problem in meeting its short term obligations.
BHE's Current ratio of 2.37 is in line compared to the rest of the industry. BHE outperforms 48.80% of its industry peers.
BHE has a Quick Ratio of 1.48. This is a normal value and indicates that BHE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.48, BHE is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
BHE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.13%.
BHE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.75% yearly.
BHE shows a decrease in Revenue. In the last year, the revenue decreased by -7.36%.
Measured over the past years, BHE shows a small growth in Revenue. The Revenue has been growing by 3.21% on average per year.
EPS 1Y (TTM)4.13%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%-5.45%
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%-6.48%
3.2 Future
BHE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.62% yearly.
BHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y1.77%
EPS Next 2Y7.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.56%
Revenue Next 2Y3.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.11, BHE is valued on the expensive side.
Based on the Price/Earnings ratio, BHE is valued cheaper than 86.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, BHE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.58, the valuation of BHE can be described as correct.
BHE's Price/Forward Earnings ratio is rather cheap when compared to the industry. BHE is cheaper than 86.40% of the companies in the same industry.
BHE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHE is valued cheaper than 93.60% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BHE indicates a rather cheap valuation: BHE is cheaper than 92.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BHE may justify a higher PE ratio.
PEG (NY)9.67
PEG (5Y)1.46
EPS Next 2Y7.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BHE has a Yearly Dividend Yield of 1.73%.
BHE's Dividend Yield is rather good when compared to the industry average which is at 1.95. BHE pays more dividend than 92.00% of the companies in the same industry.
BHE's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
The dividend of BHE has a limited annual growth rate of 2.33%.
BHE has been paying a dividend for over 5 years, so it has already some track record.
As BHE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.33%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
BHE pays out 45.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of BHE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.58%
EPS Next 2Y7.62%
EPS Next 3YN/A
38.83
-0.45 (-1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.43%
Inst Owner Change1.76%
Ins Owners2.09%
Ins Owner Change5.5%
Market Cap1.40B
Analysts77.5
Price Target45.9 (18.21%)
Short Float %3.95%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend0.67
Dividend Growth(5Y)2.33%
DP45.58%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.01%
Min EPS beat(2)2.46%
Max EPS beat(2)7.56%
EPS beat(4)4
Avg EPS beat(4)6.37%
Min EPS beat(4)2.46%
Max EPS beat(4)11.2%
EPS beat(8)8
Avg EPS beat(8)6.98%
EPS beat(12)11
Avg EPS beat(12)7.06%
EPS beat(16)15
Avg EPS beat(16)8.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-1.57%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)3.7%
Revenue beat(8)5
Avg Revenue beat(8)0.86%
Revenue beat(12)8
Avg Revenue beat(12)2.01%
Revenue beat(16)11
Avg Revenue beat(16)2.46%
PT rev (1m)0%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 14.58 | ||
| P/S | 0.54 | ||
| P/FCF | 9.96 | ||
| P/OCF | 8.14 | ||
| P/B | 1.27 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)2.27
EY5.85%
EPS(NY)2.66
Fwd EY6.86%
FCF(TTM)3.9
FCFY10.04%
OCF(TTM)4.77
OCFY12.29%
SpS72.36
BVpS30.6
TBVpS24.08
PEG (NY)9.67
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 4.79% | ||
| ROCE | 7.34% | ||
| ROIC | 5.68% | ||
| ROICexc | 7.44% | ||
| ROICexgc | 9.37% | ||
| OM | 4.21% | ||
| PM (TTM) | 2.03% | ||
| GM | 10.17% | ||
| FCFM | 5.39% |
ROA(3y)2.95%
ROA(5y)2.31%
ROE(3y)6.1%
ROE(5y)4.68%
ROIC(3y)5.67%
ROIC(5y)4.78%
ROICexc(3y)6.91%
ROICexc(5y)6%
ROICexgc(3y)8.59%
ROICexgc(5y)7.73%
ROCE(3y)7.33%
ROCE(5y)6.18%
ROICexcg growth 3Y10.04%
ROICexcg growth 5Y15.2%
ROICexc growth 3Y12.99%
ROICexc growth 5Y17.65%
OM growth 3Y13.76%
OM growth 5Y18.87%
PM growth 3Y14.55%
PM growth 5Y18.21%
GM growth 3Y3.65%
GM growth 5Y4.44%
F-Score7
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.96 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 68.02% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 4.29 | ||
| Cash Conversion | 110.17% | ||
| Profit Quality | 265.75% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.08 |
F-Score7
WACC8.85%
ROIC/WACC0.64
Cap/Depr(3y)116.32%
Cap/Depr(5y)105.1%
Cap/Sales(3y)1.87%
Cap/Sales(5y)1.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.13%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%-5.45%
EPS Next Y1.77%
EPS Next 2Y7.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%-6.48%
Revenue Next Year-0.56%
Revenue Next 2Y3.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.36%
EBIT growth 3Y20.13%
EBIT growth 5Y22.68%
EBIT Next Year49.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y169.73%
FCF growth 3YN/A
FCF growth 5Y21.87%
OCF growth 1Y228.23%
OCF growth 3YN/A
OCF growth 5Y15.23%