Benchmark Electronics (BHE) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: 1.78%
• Average Volume (3M): 268.25K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 1.24
• Revenue Growth: -5.95%
• EPS Growth: -43.46%
• Country: US
• Employees: 11,700
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.55
• Shares Outstanding: 35,910,706
• 10 Day Avg. Volume: 399,093
• 30 Day Avg. Volume: 268,253
• PEG Ratio: -9.34
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 10.47
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 10.48
• 1Y Price Target: $46.50
• Price Target Upside: 21.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $44.00 ▲(15.18% Upside)

Benchmark Electronics' strong balance sheet and positive earnings call outlook are offset by declining revenue trends and a high P/E ratio. Technical indicators suggest a neutral market sentiment, contributing to a moderate overall score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt enhances financial stability and provides flexibility for future investments and growth initiatives.

Strategic Wins and Record Bookings

Record bookings in key sectors indicate robust demand and potential for sustained revenue growth, strengthening market position.

Successful Debt Refinancing

Refinancing at favorable rates reduces interest costs and improves cash flow, supporting long-term financial health and operational flexibility.

Negative Factors

Declining Revenue Trend

A declining revenue trend can undermine growth prospects and market competitiveness, necessitating strategic adjustments to reverse the trend.

Volatile Cash Flow

Volatile cash flow can impact the company's ability to fund operations and invest in growth, posing risks to financial stability and strategic initiatives.

Modest Return on Equity

A low ROE indicates inefficiencies in using shareholder equity to generate profits, which could affect investor confidence and long-term value creation.

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 through multiple streams, primarily from its contract manufacturing services. The company partners with clients to manufacture and assemble electronic components and systems, which are then sold to end-users in various industries. Key revenue streams include engineering services, manufacturing services, and supply chain management. Additionally, Benchmark has established significant partnerships with major companies in sectors such as aerospace, medical devices, and telecommunications, which contribute to steady demand for its services. The company's ability to leverage its engineering expertise and technology capabilities enhances its competitive advantage, allowing for the development of high-value, innovative products that drive profitability.

Benchmark Electronics Financial Statement Overview

Summary

Benchmark Electronics has a strong balance sheet with low debt and high equity, but faces challenges with declining revenue and modest ROE. Cash flow is generally healthy, though historically volatile.

Income Statement

Benchmark Electronics demonstrated a stable gross profit margin of approximately 10.1% in TTM (Trailing-Twelve-Months) and an EBIT margin of 3.4%. However, revenue has shown a declining trend over the past few years, with a significant drop from 2024 to TTM. The net profit margin in TTM stands at 1.5%, indicating moderate profitability. While the company has managed to maintain decent margins, the declining revenue growth is a concern.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.05 in TTM, indicating low leverage, which is a positive sign for financial stability. The equity ratio is high at 100%, reflecting strong shareholder equity. Return on equity (ROE) is modest at 1.9% for TTM, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Free cash flow has shown improvement in the TTM period, but the free cash flow growth rate is negative when compared to previous years. The operating cash flow to net income ratio is 2.96, indicating that the company generates sufficient cash relative to its net income. However, the historical volatility in operating cash flow highlights potential risks in cash generation stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.59B	2.66B	2.84B	2.89B	2.26B	2.05B
Gross Profit	262.62M	270.02M	271.07M	255.24M	205.90M	175.05M
EBITDA	140.43M	109.41M	158.50M	141.07M	97.39M	90.59M
Net Income	38.41M	63.33M	64.31M	68.23M	35.77M	14.05M
Balance Sheet
Total Assets	2.03B	2.14B	2.27B	2.23B	1.90B	1.74B
Cash, Cash Equivalents and Short-Term Investments	264.65M	315.15M	277.39M	207.43M	271.75M	390.81M
Total Debt	328.10M	383.48M	454.34M	411.64M	221.15M	212.33M
Total Liabilities	923.98M	1.03B	1.20B	1.20B	930.08M	754.65M
Stockholders Equity	1.11B	1.11B	1.08B	1.03B	973.80M	989.59M
Cash Flow
Free Cash Flow	78.33M	155.97M	96.56M	-224.24M	-44.80M	80.92M
Operating Cash Flow	113.63M	189.22M	174.29M	-177.47M	-2.62M	120.44M
Investing Cash Flow	-33.35M	-32.77M	-77.14M	-41.17M	-41.88M	-34.38M
Financing Cash Flow	-135.63M	-109.11M	-23.58M	159.23M	-73.95M	-57.53M

Benchmark Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHE, the sentiment is Negative. The current price of 38.2 is below the 20-day moving average (MA) of 39.35, below the 50-day MA of 39.32, and below the 200-day MA of 39.52, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 14.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BHE.

Benchmark Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	80 Outperform	$6.21B	24.94	10.13%	―	5.87%	20.66%
TTMI	79 Outperform	$6.10B	66.29	3.60%	―	14.24%	424.78%
FLEX	74 Outperform	$21.77B	25.48	17.51%	―	-3.63%	2.26%
BHE	69 Neutral	$1.37B	36.28	3.49%	1.78%	-5.95%	-43.46%
JBL	67 Neutral	$23.06B	36.68	43.42%	0.15%	3.18%	-46.01%
ST	63 Neutral	$4.46B	40.28	3.87%	1.57%	-7.23%	1278.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Benchmark Electronics Corporate Events

Benchmark Electronics Declares Quarterly Dividend Announcement

On September 9, 2025, Benchmark Electronics announced that its Board of Directors declared a quarterly dividend of $0.17 per share. This dividend is payable on October 13, 2025, to shareholders recorded by September 30, 2025. This announcement reflects Benchmark’s continued commitment to returning value to its shareholders, which may positively impact investor confidence and the company’s market positioning.

The most recent analyst rating on (BHE) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.

Benchmark Electronics Announces CEO Transition Plan

On September 2, 2025, Benchmark Electronics announced the retirement of its President and CEO, Jeffrey W. Benck, effective March 31, 2026. David Moezidis, currently the Executive Vice President and Chief Commercial Officer, will succeed Benck as CEO. Benck, who has led the company since 2019, will transition to an advisory role until March 31, 2027, ensuring a smooth leadership transition. Under Benck’s leadership, Benchmark experienced significant growth and innovation, solidifying its position as an industry leader. Moezidis, with over 35 years of experience, is expected to continue this trajectory, leveraging his extensive expertise in the electronic manufacturing services industry.

The most recent analyst rating on (BHE) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.

Benchmark Electronics Appoints Charles Swoboda to Board

On August 4, 2025, Benchmark Electronics announced the appointment of Charles Swoboda as an independent director to its Board of Directors. Swoboda, a former Chairman and CEO of Cree, Inc., brings extensive experience in technology and manufacturing, aligning with Benchmark’s strategic direction. His expertise in semiconductors and global operations is expected to enhance Benchmark’s capabilities and deliver further value to its customers.

The most recent analyst rating on (BHE) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Benchmark Electronics stock, see the BHE Stock Forecast page.