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 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of BHE get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year BHE had a positive cash flow from operations.
BHE had positive earnings in each of the past 5 years.
In multiple years BHE reported negative operating cash flow during the last 5 years.
1.2 Ratios
BHE's Return On Assets of 2.96% is fine compared to the rest of the industry. BHE outperforms 63.71% of its industry peers.
Looking at the Return On Equity, with a value of 5.69%, BHE is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
BHE has a Return On Invested Capital of 6.01%. This is in the better half of the industry: BHE outperforms 68.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHE is below the industry average of 9.15%.
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 of 2.38%. This is in the better half of the industry: BHE outperforms 60.48% of its industry peers.
In the last couple of years the Profit Margin of BHE has grown nicely.
With a decent Operating Margin value of 4.36%, BHE is doing good in the industry, outperforming 62.90% of the companies in the same industry.
BHE's Operating Margin has improved in the last couple of years.
BHE has a Gross Margin of 10.17%. This is in the lower half of the industry: BHE underperforms 78.23% of its industry peers.
BHE's Gross Margin has improved in the last couple of years.
| 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.
BHE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BHE has less shares outstanding
BHE has a better debt/assets ratio than last year.
2.2 Solvency
BHE has an Altman-Z score of 3.05. This indicates that BHE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BHE (3.05) is comparable to the rest of the industry.
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 Debt to FCF ratio of 1.65. This is in the better half of the industry: BHE outperforms 79.03% of its industry peers.
BHE has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BHE (0.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.65
WACC9.18%
2.3 Liquidity
A Current Ratio of 2.32 indicates that BHE has no problem at all paying its short term obligations.
BHE has a Current ratio (2.32) which is comparable to the rest of the 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.
The Quick ratio of BHE (1.46) is worse than 60.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.20% over the past year.
The Earnings Per Share has been growing by 11.75% on average over the past years. This is quite good.
Looking at the last year, BHE shows a decrease in Revenue. The Revenue has decreased by -6.44% in the last year.
BHE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.21% yearly.
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
Based on estimates for the next years, BHE will show a small growth in Earnings Per Share. The EPS will grow by 7.93% on average per year.
Based on estimates for the next years, BHE will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.59 indicates a correct valuation of BHE.
Compared to the rest of the industry, the Price/Earnings ratio of BHE indicates a somewhat cheap valuation: BHE is cheaper than 79.84% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BHE to the average of the S&P500 Index (28.29), we can say BHE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.12, the valuation of BHE can be described as correct.
Based on the Price/Forward Earnings ratio, BHE is valued a bit cheaper than 76.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BHE to the average of the S&P500 Index (21.32), we can say BHE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
88.71% of the companies in the same industry are more expensive than BHE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BHE is valued cheaply inside the industry as 91.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.3 | ||
| EV/EBITDA | 7.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BHE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BHE may justify a higher PE ratio.
PEG (NY)5.05
PEG (5Y)1.33
EPS Next 2Y7.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BHE has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
The stock price of BHE dropped by -25.42% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BHE's Dividend Yield is rather good when compared to the industry average which is at 2.39. BHE pays more dividend than 91.13% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.51, BHE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 Years0
Div Non Decr Years5
5.3 Sustainability
37.76% of the earnings are spent on dividend by BHE. This is a low number and sustainable payout ratio.
The dividend of BHE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.76%
EPS Next 2Y7.93%
EPS Next 3YN/A
35.86
+0.43 (+1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.74%
Inst Owner Change0.45%
Ins Owners2.17%
Ins Owner Change2.98%
Market Cap1.29B
Analysts77.5
Price Target50.49 (40.8%)
Short Float %4.2%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend0.67
Dividend Growth(5Y)2.33%
DP37.76%
Div Incr Years0
Div Non Decr Years5
Ex-Date
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)0%
PT rev (3m)11.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 15.12 | ||
| P/S | 0.49 | ||
| P/FCF | 8.3 | ||
| P/OCF | 6.84 | ||
| P/B | 1.16 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 7.64 |
EPS(TTM)2.3
EY6.41%
EPS(NY)2.37
Fwd EY6.61%
FCF(TTM)4.32
FCFY12.05%
OCF(TTM)5.24
OCFY14.62%
SpS73.58
BVpS30.84
TBVpS24.29
PEG (NY)5.05
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 5.69% | ||
| ROCE | 7.77% | ||
| ROIC | 6.01% | ||
| ROICexc | 7.62% | ||
| ROICexgc | 9.54% | ||
| 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)8.59%
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-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 | 4.13 | ||
| Cash Conversion | 116.88% | ||
| Profit Quality | 246.3% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.05 |
F-Score8
WACC9.18%
ROIC/WACC0.65
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%