Benchmark Electronics (BHE) AI Stock Analysis

• Market Cap: $2.13B
• Dividend Yield: 1.44%
• Average Volume (3M): 329.49K
• Price to Earnings (P/E): 87.0
• Beta (1Y): 1.31
• 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: 472,697
• 30 Day Avg. Volume: 329,491
• 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: 1.06
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 8.36
• Enterprise Value/Ebitda: 17.43
• 1Y Price Target: $62.00
• Price Target Upside: 2.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.5
• Revenue Forecast (FY): $2.78B

• Rating: 66 Neutral
• Price Target: $64.00 ▲(6.03% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily supported by a strong balance sheet and improved free cash flow, plus a constructive earnings outlook with bookings momentum. These positives are tempered by compressed margins and a high P/E valuation, while technicals show strength but with somewhat stretched momentum.

Positive Factors

Conservative balance sheet

Marked reduction in debt and low leverage provide durable financial flexibility. With sizable equity relative to assets, Benchmark can fund investments, absorb downturns, and pursue M&A or buybacks without stressing liquidity, supporting multi‑quarter operational plans.

Improved cash generation

Sustained positive operating and free cash flow strengthens internal funding for capacity builds and shareholder returns. Strong cash conversion this year supports capital allocation choices and reduces reliance on external financing across the next several quarters.

Bookings & exposure to growth end markets

Momentum in aerospace, medical, and AI-related ramps gives durable revenue optionality. Bookings and targeted capacity investments (new Penang facility) position Benchmark to capture multi‑quarter program ramps and higher‑value engineering work.

Negative Factors

Thin and compressed margins

Low single‑digit operating and net margins limit earnings resilience to cost inflation or revenue softness. Margin compression reduces free cash flow leverage from incremental revenue, making sustained profitability sensitive to pricing, mix, and cost control over coming quarters.

End‑market cyclicality and revenue visibility

Material exposure to cyclical semiconductor customers and China headwinds reduces revenue visibility. Cyclical downturns can quickly depress volumes and utilization, undermining margin recovery and complicating capacity planning over multiple quarters.

CapEx step‑up and near‑term margin pressure

Planned capital investments to support booked business will absorb cash and increase depreciation, pressuring near‑term free cash flow and operating margins. During ramp periods, returns and cash conversion may lag while fixed costs and working capital increase.

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 Electronics generates revenue primarily through its contract manufacturing services, where it partners with original equipment manufacturers (OEMs) to produce electronic components and systems. Key revenue streams include manufacturing services, engineering services, and supply chain management solutions. The company benefits from long-term contracts with major clients in various sectors, which provide a stable revenue base. Additionally, Benchmark's focus on high-growth industries, such as medical technology and aerospace, allows it to capitalize on increasing demand for advanced electronic solutions. Strategic partnerships with technology leaders and investments in R&D further enhance its competitive position and contribute to its earnings.

Benchmark Electronics Financial Statement Overview

Summary

Overall fundamentals are supported by a conservative balance sheet (debt down sharply and low debt-to-equity) and improved recent free cash flow. Offsetting this, profitability is thin and has compressed versus 2024 (lower net and EBIT margins), which limits the financial performance score despite stable revenue.

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: 60.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 60.36 is above the 20-day moving average (MA) of 56.82, above the 50-day MA of 50.54, and above the 200-day MA of 42.68, indicating a bullish trend. The MACD of 2.54 indicates Positive momentum. The RSI at 72.80 is Negative, neither overbought nor oversold. The STOCH value of 63.53 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	$28.12B	41.42	47.87%	0.14%	13.18%	-38.37%
FLEX	72 Outperform	$23.87B	29.40	16.85%	―	0.77%	0.51%
SANM	71 Outperform	$8.64B	38.60	9.74%	―	7.40%	13.79%
ST	68 Neutral	$5.59B	179.50	1.10%	1.43%	-8.07%	63.50%
TTMI	68 Neutral	$11.03B	64.77	10.67%	―	17.88%	91.41%
BHE	66 Neutral	$2.13B	87.04	3.37%	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 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.

Benchmark Electronics Announces Executive Leadership Changes

Benchmark Electronics has announced a series of executive changes as part of its succession planning. David Moezidis will become the CEO following Jeffrey W. Benck’s retirement on March 31, 2026, and has been promoted to President, resulting in an increased salary and target annual cash incentive compensation.

The most recent analyst rating on (BHE) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.

Benchmark Electronics Declares Quarterly Dividend

On December 15, 2025, Benchmark Electronics announced that its Board of Directors declared a quarterly dividend of $0.17 per share, payable on January 13, 2026, to shareholders of record as of December 31, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively influence its market positioning and investor relations.

The most recent analyst rating on (BHE) stock is a Hold with a $54.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.

Benchmark Electronics Appoints New Chief Commercial Officer

On December 10, 2025, Benchmark Electronics announced the appointment of David L. Cummings as Senior Vice President and Chief Commercial Officer, succeeding David Moezidis, who will become CEO in March 2026. Cummings, with over 20 years of experience in global customer management and supply chain transformation, is expected to accelerate Benchmark’s commercial strategy and growth, enhancing its customer-centric innovation and operational excellence.

The most recent analyst rating on (BHE) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.