Benchmark Electronics (BHE)
NYSE:BHE
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Benchmark Electronics
(NYSE:BHE)
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Rating:62Neutral
Price Target:
$87.00
▲(33.74% Upside)
Action:Reiterated
Date:05/01/26
BHE scores as a mid-range opportunity: stable financials and improving cash generation support the outlook, and the earnings call strengthened the near-term story via a guidance raise and solid execution. The score is capped by very thin margins and a high P/E valuation, while technicals show strong but overextended momentum that can add near-term volatility.
Positive Factors
Diversified EMS business across resilient end markets
Benchmark’s broad EMS footprint across medical, aerospace & defense, industrial, semiconductor capital equipment and communications reduces single-market cyclicality. Engineering, NPI and aftermarket services deepen customer relationships and increase program stickiness, supporting durable revenue streams and long-term program retention.
Negative Factors
Very thin profitability margins
EBITDA and net margins are structurally thin for an EMS provider, leaving limited buffer for commodity inflation, pricing pressure or higher SG&A. Low absolute profitability restricts reinvestment, amplifies earnings volatility from modest revenue swings and constrains long-term free cash flow expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified EMS business across resilient end markets
Benchmark’s broad EMS footprint across medical, aerospace & defense, industrial, semiconductor capital equipment and communications reduces single-market cyclicality. Engineering, NPI and aftermarket services deepen customer relationships and increase program stickiness, supporting durable revenue streams and long-term program retention.
Read all positive factors
Benchmark Electronics (BHE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.99B
Dividend Yield1.44%
Average Volume (3M)446.48K
Price to Earnings (P/E)38.5
Beta (1Y)1.32
Revenue Growth3.53%
EPS Growth-34.92%
CountryUS
Employees11,700
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.96
Shares Outstanding35,877,037
10 Day Avg. Volume392,263
30 Day Avg. Volume446,479
Financial Highlights & Ratios
PEG Ratio-1.02
Price to Book (P/B)1.39
Price to Sales (P/S)0.58
P/FCF Ratio17.96
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit10.88
Enterprise Value/Ebitda18.94
Forecast
1Y Price Target
$71.00Price Target Upside9.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.55
Revenue Forecast (FY)$2.82B
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 ...
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...
Benchmark Electronics Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: the company beat Q1 expectations on revenue and EPS, raised full-year revenue guidance materially (to 9%–10%), reported strong YoY growth in Medical (+24%) and AC&C (+41%), highlighted improving Semi‑Cap momentum and maintained solid cash generation and a healthy balance sheet. Headwinds were present but generally manageable — sequential margin compression due to seasonality and variable compensation, modest YoY declines in Industrial and A&D, supply‑chain pockets and some ambiguity around the exact magnitude of Semi‑Cap sequential growth. Overall, the positives (guidance raise, sector outperformance, cash flow, bookings and strategic wins) outweigh the negatives.Positive Updates
Revenue and EPS Beat
Q1 revenue of $677 million, up 7% year-over-year, and non-GAAP EPS of $0.58, which was at the higher end of prior guidance ($0.53–$0.59). Quarterly results came in toward the higher end of expectations.
Negative Updates
Sequential Margin Pressures
Despite YoY improvement, non-GAAP gross margin declined 30 basis points sequentially to 10.3% and non-GAAP operating margin fell 70 basis points sequentially to 4.8%, driven by seasonal volume fluctuations and higher variable compensation.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and EPS Beat
Q1 revenue of $677 million, up 7% year-over-year, and non-GAAP EPS of $0.58, which was at the higher end of prior guidance ($0.53–$0.59). Quarterly results came in toward the higher end of expectations.
Read all positive updates
Company Guidance
Benchmark raised full‑year revenue guidance to 9%–10% (up from mid‑single digits) and said operating income and earnings should grow faster than revenue, backed by Q1 results of $677M revenue and $0.58 non‑GAAP EPS (non‑GAAP gross margin 10.3%, operating margin 4.8%, effective tax rate 27.4%). For Q2 they guide revenue $700M–$740M (≈+12% YoY at the midpoint), non‑GAAP gross margin 10.4%–10.6%, non‑GAAP operating margin 5.1%–5.3%, non‑GAAP diluted EPS $0.65–$0.71, an effective tax rate of 26%–27%, weighted average shares ~36.3M, interest/other ≈$3.5M, with GAAP including ~$6.1M stock‑based comp and $0.8M–$1.2M of other non‑operating items. The company also reiterated strength in Semi‑Cap (expecting mid‑teens sector growth and Penang‑4 online in Q3), affirmed continued investment (Q1 capex ~$18M; full‑year capex expected at the higher end of 2.0%–2.5% of revenue), and highlighted healthy liquidity and cash flow (Q1 operating cash flow $47M, free cash flow $29M, net cash +$120M, cash $325M, $486M available borrowing capacity), plus working‑capital improvements (cash conversion 67 days, inventory days down 14, turns 4.8 vs 4.0).Benchmark Electronics Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.70B | 2.66B | 2.66B | 2.84B | 2.89B | 2.26B |
| Gross Profit | 273.20M | 264.95M | 270.02M | 271.07M | 255.24M | 205.90M |
| EBITDA | 156.97M | 152.15M | 156.96M | 158.50M | 141.49M | 98.03M |
| Net Income | 34.23M | 24.85M | 63.33M | 64.31M | 68.23M | 35.77M |
Balance Sheet | ||||||
| Total Assets | 2.10B | 2.07B | 2.14B | 2.27B | 2.23B | 1.90B |
| Cash, Cash Equivalents and Short-Term Investments | 324.91M | 322.40M | 315.15M | 277.39M | 207.43M | 271.75M |
| Total Debt | 304.33M | 407.95M | 366.19M | 454.34M | 411.64M | 221.15M |
| Total Liabilities | 999.69M | 971.91M | 1.03B | 1.20B | 1.20B | 930.08M |
| Stockholders Equity | 1.10B | 1.10B | 1.11B | 1.08B | 1.03B | 973.80M |
Cash Flow | ||||||
| Free Cash Flow | 86.83M | 85.42M | 155.97M | 96.56M | -220.82M | -44.80M |
| Operating Cash Flow | 139.49M | 123.96M | 189.22M | 174.29M | -177.47M | -2.62M |
| Investing Cash Flow | -44.69M | -32.70M | -32.77M | -77.14M | -41.17M | -41.88M |
| Financing Cash Flow | -129.34M | -105.90M | -109.11M | -23.58M | 159.23M | -73.95M |
Benchmark Electronics Technical Analysis
Positive
65.05
Price Trends
67.44
Positive
59.88
Positive
50.66
Positive
Market Momentum
4.96
Positive
61.85
Neutral
31.02
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 65.05 is below the 20-day moving average (MA) of 80.65, below the 50-day MA of 67.44, and above the 200-day MA of 50.66, indicating a bullish trend. The MACD of 4.96 indicates Positive momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 31.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHE.
Benchmark Electronics Risk Analysis
Benchmark Electronics disclosed 35 risk factors in its most recent earnings report. Benchmark Electronics reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Benchmark Electronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $48.36B | 27.82 | 17.26% | ― | 8.14% | ― | |
70 Outperform | $12.39B | 18.96 | 10.88% | ― | 44.48% | 8.59% | |
70 Outperform | $17.59B | 45.85 | 11.26% | ― | 23.10% | 146.72% | |
69 Neutral | $36.41B | 31.64 | 58.99% | 0.14% | 19.00% | 78.70% | |
67 Neutral | $6.94B | 14.72 | 1.72% | 1.43% | -3.37% | -59.55% | |
62 Neutral | $2.99B | 38.49 | 3.10% | 1.44% | 3.53% | -34.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BHE
Benchmark Electronics
83.45
47.64
133.00%
FLEX
Flex
131.52
90.34
219.38%
JBL
Jabil
345.15
180.17
109.20%
SANM
Sanmina-Sci
231.18
149.07
181.55%
ST
Sensata
47.74
22.52
89.28%
TTMI
TTM Technologies
169.36
140.46
486.02%
Benchmark Electronics Corporate Events
Dividends
Benchmark Electronics Declares First-Quarter Cash Dividend for 2026
Positive
Mar 16, 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 sh...
Business Operations and StrategyExecutive/Board Changes
Benchmark Electronics Finalizes CEO Moezidis Employment Agreement
Positive
Feb 24, 2026
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 al...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.