BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
NYSE:BHE - New York Stock Exchange, Inc. - US08160H1014 - Common Stock
BHE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BHE was profitable.
BHE had a positive operating cash flow in the past year.
Each year in the past 5 years BHE has been profitable.
In multiple years BHE reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of BHE (2.91%) is better than 60.83% of its industry peers.
BHE's Return On Equity of 5.66% is in line compared to the rest of the industry. BHE outperforms 60.00% of its industry peers.
With a decent Return On Invested Capital value of 6.40%, BHE is doing good in the industry, outperforming 67.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BHE is below the industry average of 9.03%.
The 3 year average ROIC (5.22%) for BHE is below the current ROIC(6.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 5.66% | ||
| ROIC | 6.4% |
ROA(3y)2.59%
ROA(5y)1.98%
ROE(3y)5.43%
ROE(5y)4%
ROIC(3y)5.22%
ROIC(5y)4.22%
1.3 Margins
The Profit Margin of BHE (2.32%) is comparable to the rest of the industry.
BHE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 4.48%, BHE is doing good in the industry, outperforming 61.67% of the companies in the same industry.
In the last couple of years the Operating Margin of BHE has grown nicely.
Looking at the Gross Margin, with a value of 10.15%, BHE is doing worse than 79.17% of the companies in the same industry.
BHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.48% | ||
| PM (TTM) | 2.32% | ||
| GM | 10.15% |
OM growth 3Y23.71%
OM growth 5Y9.47%
PM growth 3Y49.02%
PM growth 5Y20.57%
GM growth 3Y3.85%
GM growth 5Y2.13%
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 an Altman-Z score of 3.31. This indicates that BHE is financially healthy and has little risk of bankruptcy at the moment.
BHE's Altman-Z score of 3.31 is in line compared to the rest of the industry. BHE outperforms 52.50% of its industry peers.
BHE has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
The Debt to FCF ratio of BHE (1.14) is better than 80.83% of its industry peers.
BHE has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
BHE has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 3.31 |
ROIC/WACC0.59
WACC10.81%
2.3 Liquidity
BHE has a Current Ratio of 2.36. This indicates that BHE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BHE (2.36) is comparable to the rest of the industry.
A Quick Ratio of 1.45 indicates that BHE should not have too much problems paying its short term obligations.
BHE has a Quick ratio of 1.45. This is in the lower half of the industry: BHE underperforms 61.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
BHE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.66%, which is quite good.
The Earnings Per Share has been growing slightly by 7.17% on average over the past years.
BHE shows a decrease in Revenue. In the last year, the revenue decreased by -7.17%.
Measured over the past years, BHE shows a small growth in Revenue. The Revenue has been growing by 2.04% on average per year.
EPS 1Y (TTM)9.66%
EPS 3Y29.22%
EPS 5Y7.17%
EPS Q2Q%0%
Revenue 1Y (TTM)-7.17%
Revenue growth 3Y11.41%
Revenue growth 5Y2.04%
Sales Q2Q%-8.61%
3.2 Future
BHE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.65% yearly.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y11.1%
EPS Next 2Y9.87%
EPS Next 3Y10.65%
EPS Next 5YN/A
Revenue Next Year-6.9%
Revenue Next 2Y-1.36%
Revenue Next 3Y1.86%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.57, the valuation of BHE can be described as rather expensive.
73.33% of the companies in the same industry are more expensive than BHE, based on the Price/Earnings ratio.
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.
With a Price/Forward Earnings ratio of 19.79, BHE is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BHE is valued a bit cheaper than 72.50% of the companies in the same industry.
BHE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 19.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHE is valued cheaper than 81.67% of the companies in the same industry.
95.00% of the companies in the same industry are more expensive than BHE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 10.31 |
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)1.94
PEG (5Y)3.01
EPS Next 2Y9.87%
EPS Next 3Y10.65%
5. Dividend
5.1 Amount
BHE has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 1.87, BHE pays a better dividend. On top of this BHE pays more dividend than 91.67% of the companies listed in the same industry.
BHE's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
On average, the dividend of BHE grows each year by 7.37%, which is quite nice.
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
BHE pays out 37.91% of its income as dividend. This is a sustainable payout ratio.
BHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.91%
EPS Next 2Y9.87%
EPS Next 3Y10.65%
BENCHMARK ELECTRONICS INC
NYSE:BHE (1/21/2025, 8:04:00 PM)
After market: 48.97 0 (0%)48.97
+0.89 (+1.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change0.06%
Ins Owners2.23%
Ins Owner Change-2.27%
Market Cap1.76B
Analysts75
Price Target45.22 (-7.66%)
Short Float %3.47%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend0.66
Dividend Growth(5Y)7.37%
DP37.91%
Div Incr Years0
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.74%
Min EPS beat(2)4.27%
Max EPS beat(2)11.2%
EPS beat(4)4
Avg EPS beat(4)8.99%
Min EPS beat(4)2.09%
Max EPS beat(4)18.38%
EPS beat(8)7
Avg EPS beat(8)5.74%
EPS beat(12)11
Avg EPS beat(12)9.85%
EPS beat(16)15
Avg EPS beat(16)8.03%
Revenue beat(2)2
Avg Revenue beat(2)1.95%
Min Revenue beat(2)0.19%
Max Revenue beat(2)3.7%
Revenue beat(4)3
Avg Revenue beat(4)1.09%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)3.7%
Revenue beat(8)6
Avg Revenue beat(8)1.35%
Revenue beat(12)10
Avg Revenue beat(12)3.68%
Revenue beat(16)11
Avg Revenue beat(16)2.61%
PT rev (1m)0%
PT rev (3m)7.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.09%
EPS NY rev (1m)0%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 19.79 | ||
| P/S | 0.66 | ||
| P/FCF | 7.19 | ||
| P/OCF | 6.29 | ||
| P/B | 1.6 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)2.27
EY4.64%
EPS(NY)2.47
Fwd EY5.05%
FCF(TTM)6.81
FCFY13.91%
OCF(TTM)7.79
OCFY15.9%
SpS74.74
BVpS30.63
TBVpS24
PEG (NY)1.94
PEG (5Y)3.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 5.66% | ||
| ROCE | 7.99% | ||
| ROIC | 6.4% | ||
| ROICexc | 8.15% | ||
| ROICexgc | 10.2% | ||
| OM | 4.48% | ||
| PM (TTM) | 2.32% | ||
| GM | 10.15% | ||
| FCFM | 9.11% |
ROA(3y)2.59%
ROA(5y)1.98%
ROE(3y)5.43%
ROE(5y)4%
ROIC(3y)5.22%
ROIC(5y)4.22%
ROICexc(3y)6.35%
ROICexc(5y)5.34%
ROICexgc(3y)8.07%
ROICexgc(5y)7%
ROCE(3y)6.53%
ROCE(5y)5.27%
ROICexcg growth 3Y15.35%
ROICexcg growth 5Y0.98%
ROICexc growth 3Y21.16%
ROICexc growth 5Y4.14%
OM growth 3Y23.71%
OM growth 5Y9.47%
PM growth 3Y49.02%
PM growth 5Y20.57%
GM growth 3Y3.85%
GM growth 5Y2.13%
F-Score7
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 76.82% | ||
| Cap/Sales | 1.31% | ||
| Interest Coverage | 4.03 | ||
| Cash Conversion | 168.37% | ||
| Profit Quality | 392.5% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.31 |
F-Score7
WACC10.81%
ROIC/WACC0.59
Cap/Depr(3y)124.14%
Cap/Depr(5y)105.19%
Cap/Sales(3y)2.08%
Cap/Sales(5y)1.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.66%
EPS 3Y29.22%
EPS 5Y7.17%
EPS Q2Q%0%
EPS Next Y11.1%
EPS Next 2Y9.87%
EPS Next 3Y10.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.17%
Revenue growth 3Y11.41%
Revenue growth 5Y2.04%
Sales Q2Q%-8.61%
Revenue Next Year-6.9%
Revenue Next 2Y-1.36%
Revenue Next 3Y1.86%
Revenue Next 5YN/A
EBIT growth 1Y5%
EBIT growth 3Y37.82%
EBIT growth 5Y11.7%
EBIT Next Year52.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y244.74%
FCF growth 3Y6.07%
FCF growth 5Y57.52%
OCF growth 1Y322.48%
OCF growth 3Y13.11%
OCF growth 5Y17.85%