Benchmark Electronics (BHE) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: 1.44%
• Average Volume (3M): 322.92K
• Price to Earnings (P/E): 61.4
• Beta (1Y): 1.34
• Revenue Growth: -2.93%
• EPS Growth: -40.33%
• Country: US
• Employees: 11,700
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.71
• Shares Outstanding: 35,667,046
• 10 Day Avg. Volume: 322,940
• 30 Day Avg. Volume: 322,924
• PEG Ratio: -1.02
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 17.86
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 7.49
• Enterprise Value/Ebitda: 15.61
• 1Y Price Target: $62.00
• Price Target Upside: 14.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.5
• Revenue Forecast (FY): $2.78B

• Rating: 62 Neutral
• Price Target: $57.00 ▲(5.22% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven mainly by solid financial footing (low leverage and improved free cash flow) and a supportive earnings call outlook (bookings momentum and Q1 growth guidance). It is held back by elevated valuation (high P/E with modest yield) and weaker near-term technical momentum (negative MACD and sub-50 RSI).

Positive Factors

Balance sheet strength

A materially lower debt load and ~0.29 debt-to-equity give Benchmark durable financial flexibility. This reduces refinancing risk, supports capital returns and strategic investments, and provides a multi‑quarter buffer to absorb cyclical revenue swings without threatening solvency.

Improved cash generation

Sustained operating cash and rising free cash flow improve internal funding for capex, dividends and buybacks while lowering external funding needs. Better cash conversion and a net cash position enhance resilience through cycles and support multi‑period strategic investments.

Bookings in higher-growth end markets

Momentum in aerospace, medical and AI-related programs shifts revenue mix toward regulated, higher-reliability customers whose programs tend to be multi-year and stickier. Coupled with targeted capacity (Penang) this improves long‑term revenue visibility and potential for higher value‑added margins.

Negative Factors

Thin profitability and margin pressure

Very slim net and operating margins leave limited cushion against cost inflation, procurement shocks, or lower volumes. Even modest adverse swings materially compress earnings and ROE, constraining durable shareholder returns and making long‑term margin recovery critical to value creation.

End‑market cyclicality: semi cap softness

Exposure to semiconductor capital equipment and related cyclical end markets creates revenue volatility and uncertain timing of recovery. Persistent softness or China import headwinds could depress multi‑quarter top‑line growth despite strength in other sectors, complicating planning and utilization.

Step‑up in CapEx and execution risk

Higher near‑term capex to ramp Penang and equipment will absorb cash and raise depreciation and fixed costs. Benefits depend on successful ramp and program wins; misexecution could pressure free cash flow and operating margins over several quarters as investments are absorbed.

Benchmark Electronics Business Overview & Revenue Model

Company Description

Benchmark Electronics, Inc., together with its subsidiaries, provides product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company offers engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing and technology solutions, as well as automation equipment design and build services. It also provides electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, and life cycle testing services, as well as environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company offers precision machining and electromechanical assembly services; and subsystem and system integration services, including assembly, configuration, and testing for various industries. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product's life cycle. The company serves original equipment manufacturers in the aerospace and defense, medical technologies, complex industrials, semiconductor capital equipment, telecommunications, and advanced computing industries. It markets its services and solutions primarily through a direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona.

How the Company Makes Money

Benchmark primarily makes money by performing outsourced manufacturing and related services for OEM customers under manufacturing programs that convert customer demand forecasts and purchase orders into shipped products. Its main revenue stream is product manufacturing revenue: procuring components and materials, assembling and integrating electronics (from PCB assemblies to full systems), testing/verification, and delivering finished goods to customers, with earnings driven by the value-added manufacturing margin and program execution efficiency (yield, labor productivity, and overhead absorption). A second stream comes from engineering and technology services, where Benchmark supports customers with design-for-manufacturability, new product introduction (NPI), prototyping, and test/automation development; these services can be billed directly or embedded into program economics and are often used to win and retain manufacturing programs. Additional revenue is generated from post-manufacturing services such as repair, refurbishment, and other aftermarket/supply-chain services, typically tied to long-lived products in regulated or mission-critical markets. The company’s revenue and profitability are influenced by customer and end-market mix (e.g., higher-reliability regulated sectors versus more cyclical industrial/communications), program scale, component availability and pricing, and its ability to manage global sourcing and manufacturing footprints; specific significant partnerships are not publicly identifiable here and are therefore null.

Benchmark Electronics Financial Statement Overview

Summary

Balance sheet strength (debt down to ~$102M TTM and low ~0.29 debt-to-equity) and improved TTM free cash flow (~$85M) support resilience. Offsetting this, profitability is thin and has compressed versus 2024 (TTM net margin ~1.4% and weaker EBIT margin), with ROE down, keeping the financial score in the upper-mid range rather than high.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat versus 2024 (about $2.66B), with modest recent growth indicated. Profitability is positive but thin: TTM gross margin is ~10.1% and net margin is ~1.4%, down meaningfully from 2024’s ~2.4% net margin. Operating profitability also weakened (EBIT margin ~3.5% TTM vs ~4.2% in 2024), pointing to margin pressure even as sales have held up.

Balance Sheet

The balance sheet looks conservative with low leverage and strong equity support. Total debt declined sharply to about $102M in TTM (Trailing-Twelve-Months) from $366M in 2024, and debt-to-equity is low (~0.29 TTM). Equity remains sizable (~$1.10B) relative to assets (~$2.07B). The main weakness is softer shareholder returns recently (return on equity ~3.4% TTM vs ~5.7% in 2024), reflecting lower earnings rather than balance-sheet strain.

Cash Flow

Cash generation is currently solid: TTM (Trailing-Twelve-Months) operating cash flow is about $124M and free cash flow is about $85M, with free cash flow up strongly versus the prior period. Cash flow performance has been volatile historically (notably negative operating and free cash flow in 2021–2022), which raises execution/working-capital risk. Also, free cash flow is meaningfully higher than net income in TTM (about 3.4x), suggesting strong cash conversion this year but with some potential for fluctuation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.66B	2.66B	2.84B	2.89B	2.26B
Gross Profit	269.46M	270.02M	271.07M	255.24M	205.90M
EBITDA	117.18M	156.96M	158.50M	141.49M	98.03M
Net Income	24.85M	63.33M	64.31M	68.23M	35.77M
Balance Sheet
Total Assets	2.07B	2.14B	2.27B	2.23B	1.90B
Cash, Cash Equivalents and Short-Term Investments	322.40M	315.15M	277.39M	207.43M	271.75M
Total Debt	407.95M	366.19M	454.34M	411.64M	221.15M
Total Liabilities	971.91M	1.03B	1.20B	1.20B	930.08M
Stockholders Equity	1.10B	1.11B	1.08B	1.03B	973.80M
Cash Flow
Free Cash Flow	85.42M	155.97M	96.56M	-220.82M	-44.80M
Operating Cash Flow	123.96M	189.22M	174.29M	-177.47M	-2.62M
Investing Cash Flow	-32.70M	-32.77M	-77.14M	-41.17M	-41.88M
Financing Cash Flow	-105.90M	-109.11M	-23.58M	159.23M	-73.95M

Benchmark Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHE, the sentiment is Positive. The current price of 54.17 is below the 20-day moving average (MA) of 56.48, above the 50-day MA of 53.30, and above the 200-day MA of 43.92, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHE.

Benchmark Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBL	73 Outperform	$27.24B	38.47	51.13%	0.14%	13.18%	-38.37%
FLEX	72 Outperform	$23.70B	23.76	16.83%	―	0.77%	0.51%
ST	68 Neutral	$4.96B	155.81	1.11%	1.43%	-8.07%	63.50%
TTMI	68 Neutral	$9.98B	41.17	10.61%	―	17.88%	91.41%
SANM	66 Neutral	$6.75B	42.40	9.86%	―	7.40%	13.79%
BHE	62 Neutral	$1.93B	61.39	2.25%	1.44%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Benchmark Electronics Corporate Events

Benchmark Electronics Declares First-Quarter Cash Dividend for 2026

Benchmark Electronics, Inc., a global provider of engineering design, supply chain, and manufacturing services to sectors including advanced computing, aerospace and defense, industrial, medical, and semiconductor capital equipment, announced a shareholder payout decision in mid-March. The company, which operates in eight countries and trades on the NYSE under ticker BHE, continues to use dividends as part of its capital return strategy to investors.

On March 16, 2026, Benchmark Electronics said its Board of Directors declared a first-quarter cash dividend of $0.17 per share. The dividend is scheduled to be paid on April 10, 2026, to shareholders of record as of the close of business on March 31, 2026, underscoring an ongoing commitment to returning cash to shareholders and potentially signaling confidence in the company’s financial position and cash flow generation.

The most recent analyst rating on (BHE) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.

Benchmark Electronics Finalizes CEO Moezidis Employment Agreement

On February 19, 2026, Benchmark Electronics entered into an employment agreement with David Moezidis, who was previously announced on September 2, 2025 as the incoming President and Chief Executive Officer effective March 31, 2026, and who will also serve as a director. The contract runs for an initial two-year term with automatic two-year renewals, and provides a $900,000 base salary, a target bonus equal to 115% of salary, and equity awards totaling $4 million split between time-based restricted stock units and performance stock units with three-year vesting structures tied to company-wide performance goals.

The agreement outlines comprehensive severance protections, including up to two times total cash compensation and pro-rated equity vesting if he is terminated without cause or resigns for good reason, and up to three times total cash compensation plus full accelerated vesting at target levels in the event of a qualifying termination within 24 months of a change in control. The package, which also grants full vesting of equity upon death and imposes two-year post-termination non-compete and non-solicitation covenants, underscores Benchmark’s commitment to leadership stability and competitive executive retention terms during potential strategic or ownership transitions.

The most recent analyst rating on (BHE) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.

Benchmark Electronics announces upcoming CTO leadership transition

On December 29, 2025, Benchmark Electronics announced that its Chief Technology Officer, Jan Janick, will retire effective January 16, 2026, marking an upcoming leadership transition in the company’s technology organization. The company stated that Janick’s departure is not due to any disagreement with management or the board regarding operations, policies, or practices, suggesting an orderly and non-contentious change in its executive ranks.

The most recent analyst rating on (BHE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.