BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
NYSE:BHE - New York Stock Exchange, Inc. - US08160H1014 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BHE. BHE was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. BHE has an average financial health and profitability rating. BHE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BHE was profitable.
BHE had a positive operating cash flow in the past year.
In the past 5 years BHE has always been profitable.
In multiple years BHE reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.96%, BHE is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.69%, BHE is in the better half of the industry, outperforming 60.83% of the companies in the same industry.
BHE's Return On Invested Capital of 6.01% is fine compared to the rest of the industry. BHE outperforms 68.33% of its industry peers.
BHE had an Average Return On Invested Capital over the past 3 years of 5.67%. This is below the industry average of 8.95%.
The 3 year average ROIC (5.67%) for BHE is below the current ROIC(6.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 5.69% | ||
| ROIC | 6.01% |
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 (2.38%) which is comparable to the rest of the industry.
BHE's Profit Margin has improved in the last couple of years.
BHE has a better Operating Margin (4.36%) than 63.33% of its industry peers.
In the last couple of years the Operating Margin of BHE has grown nicely.
BHE has a Gross Margin of 10.17%. This is in the lower half of the industry: BHE underperforms 79.17% of its industry peers.
In the last couple of years the Gross Margin of BHE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.36% | ||
| PM (TTM) | 2.38% | ||
| 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.
Compared to 1 year ago, BHE has more shares outstanding
The number of shares outstanding for BHE has been reduced compared to 5 years ago.
Compared to 1 year ago, BHE has an improved debt to assets ratio.
2.2 Solvency
BHE has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of all of its debts.
BHE has a better Debt to FCF ratio (1.65) than 75.83% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that BHE is not too dependend on debt financing.
BHE has a Debt to Equity ratio (0.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | N/A |
ROIC/WACC0.72
WACC8.31%
2.3 Liquidity
A Current Ratio of 2.32 indicates that BHE has no problem at all paying its short term obligations.
With a Current ratio value of 2.32, BHE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BHE has a Quick Ratio of 1.46. This is a normal value and indicates that BHE is financially healthy and should not expect problems in meeting its short term obligations.
BHE has a worse Quick ratio (1.46) than 61.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
BHE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.20%, which is quite good.
BHE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.75% yearly.
Looking at the last year, BHE shows a decrease in Revenue. The Revenue has decreased by -6.44% in the last year.
The Revenue has been growing slightly by 3.21% on average over the past years.
EPS 1Y (TTM)12.2%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%5.17%
Revenue 1Y (TTM)-6.44%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%-4.99%
3.2 Future
The Earnings Per Share is expected to grow by 7.93% on average over the next years.
BHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.28% yearly.
EPS Next Y3.09%
EPS Next 2Y7.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.43%
Revenue Next 2Y5.28%
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
BHE is valuated rather expensively with a Price/Earnings ratio of 17.88.
Based on the Price/Earnings ratio, BHE is valued cheaper than 81.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHE to the average of the S&P500 Index (29.63), we can say BHE is valued slightly cheaper.
BHE is valuated rather expensively with a Price/Forward Earnings ratio of 17.35.
Based on the Price/Forward Earnings ratio, BHE is valued a bit cheaper than the industry average as 78.33% of the companies are valued more expensively.
BHE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
85.83% of the companies in the same industry are more expensive than BHE, based on the Enterprise Value to EBITDA ratio.
BHE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHE is cheaper than 90.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 9.03 |
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)5.79
PEG (5Y)1.52
EPS Next 2Y7.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BHE has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.92, BHE pays a better dividend. On top of this BHE pays more dividend than 91.67% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.29, BHE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of BHE is nicely growing with an annual growth rate of 7.37%!
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)7.37%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
The dividend of BHE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP0%
EPS Next 2Y7.93%
EPS Next 3YN/A
41.13
-1.08 (-2.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.74%
Inst Owner Change1.54%
Ins Owners2.17%
Ins Owner Change-2.01%
Market Cap1.48B
Analysts77.5
Price Target50.49 (22.76%)
Short Float %3.33%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.66
Dividend Growth(5Y)7.37%
DP0%
Div Incr Years0
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.92%
Min EPS beat(2)4.27%
Max EPS beat(2)7.56%
EPS beat(4)4
Avg EPS beat(4)10.35%
Min EPS beat(4)4.27%
Max EPS beat(4)18.38%
EPS beat(8)7
Avg EPS beat(8)6.54%
EPS beat(12)11
Avg EPS beat(12)9.07%
EPS beat(16)15
Avg EPS beat(16)8.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)0.19%
Revenue beat(4)3
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)3.7%
Revenue beat(8)6
Avg Revenue beat(8)1.67%
Revenue beat(12)9
Avg Revenue beat(12)2.88%
Revenue beat(16)11
Avg Revenue beat(16)2.58%
PT rev (1m)3.01%
PT rev (3m)10.48%
EPS NQ rev (1m)-4.14%
EPS NQ rev (3m)-17.71%
EPS NY rev (1m)-4.19%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 17.35 | ||
| P/S | 0.56 | ||
| P/FCF | 9.49 | ||
| P/OCF | 7.82 | ||
| P/B | 1.33 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 9.03 |
EPS(TTM)2.3
EY5.59%
EPS(NY)2.37
Fwd EY5.76%
FCF(TTM)4.33
FCFY10.53%
OCF(TTM)5.26
OCFY12.78%
SpS73.78
BVpS30.93
TBVpS22.81
PEG (NY)5.79
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 5.69% | ||
| ROCE | 7.77% | ||
| ROIC | 6.01% | ||
| ROICexc | 7.62% | ||
| ROICexgc | 10.14% | ||
| OM | 4.36% | ||
| PM (TTM) | 2.38% | ||
| GM | 10.17% | ||
| FCFM | 5.87% |
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)8.8%
ROICexgc(5y)7.85%
ROCE(3y)7.33%
ROCE(5y)6.18%
ROICexcg growth 3Y12.3%
ROICexcg growth 5Y16.61%
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-Score8
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 72.06% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.88% | ||
| Profit Quality | 246.3% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | N/A |
F-Score8
WACC8.31%
ROIC/WACC0.72
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)12.2%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%5.17%
EPS Next Y3.09%
EPS Next 2Y7.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.44%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%-4.99%
Revenue Next Year3.43%
Revenue Next 2Y5.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.96%
EBIT growth 3Y20.13%
EBIT growth 5Y22.68%
EBIT Next Year49.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y61.54%
FCF growth 3YN/A
FCF growth 5Y21.87%
OCF growth 1Y8.57%
OCF growth 3YN/A
OCF growth 5Y15.23%