Benchmark Electronics (BHE) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: 1.82%
• Average Volume (3M): 333.88K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.20
• Revenue Growth: -7.36%
• EPS Growth: -20.46%
• Country: US
• Employees: 11,700
• Sector: Technology
• Sector Strength: 76
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.52
• Shares Outstanding: 36,095,562
• 10 Day Avg. Volume: 257,503
• 30 Day Avg. Volume: 333,883
• PEG Ratio: N/A
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.00
• Price Target Upside: 23.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $40.00 ▲( 9.92% Upside)

Benchmark Electronics shows stable financial health with strong equity support and effective cash generation. However, revenue growth challenges and high valuation relative to earnings are concerns. Positive sector performance and strategic investments are offset by revenue and margin declines. The technical indicators suggest a neutral to slightly positive outlook, with potential overbought conditions being a factor to watch.

Positive Factors

Earnings Performance

BHE delivered a solid earnings performance despite some tariff-related demand impact.

Engineering Offerings

BHE's unique engineering offering positions it well to win new program awards and continue to penetrate subsectors that in-source their manufacturing operations.

Market Vertical Strength

Strength in Semi-Cap and A&D, along with recovering demand in Industrial, is expected to benefit BHE.

Negative Factors

Medical Sector Challenges

Medical is likely to continue to be a headwind as customers continue destocking inventories.

Revenue Decline

Q1 revenues declined 6.5% y/o/y, missing the consensus expectation of a 5% decline.

Revenue Guidance

Guidance for Q2 was modestly below expectations, with revenues expected to be flat to down 8% y/o/y.

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 and integrated engineering solutions, serving a wide range of industries such as aerospace, medical devices, telecommunications, and industrial equipment. The company earns money by offering design and engineering services, supplying precision technology products, and providing complete supply chain management. Key revenue streams include long-term contracts with OEMs for designing and manufacturing complex electronic products, as well as partnerships with industry leaders to leverage technological advancements and enhance service offerings. Benchmark Electronics' ability to maintain strong relationships with its clients and adapt to technological changes significantly contributes to its earnings.

Benchmark Electronics Financial Statement Overview

Summary

Benchmark Electronics exhibits a stable financial position with strong equity backing and efficient cash generation. Though revenue has seen slight declines, profitability margins remain decent. The low debt levels enhance financial stability, but the company faces challenges in revenue growth. Overall, the financial health indicates stability with potential for improvement in revenue generation.

Income Statement

The company shows consistent gross profit margins with a slight decline in revenue over the years. The TTM gross profit margin stands at 10.09%, while the net profit margin is 2.03%. The company experienced a revenue decline of 2.97% from the previous year, indicating challenges in maintaining growth. EBIT and EBITDA margins are stable, reflecting reasonable operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.05, suggesting low leverage. The return on equity is modest at 2.48% for TTM, which indicates mild profitability relative to equity. With an equity ratio of 100%, the company has strong capital structure stability, reducing financial risk.

Cash Flow

Operating cash flows are positive, with a TTM operating cash flow to net income ratio of 3.25, demonstrating effective conversion of income to cash. However, free cash flow growth has been inconsistent, showing a decline of 9.7% in the most recent annual report. The free cash flow to net income ratio is robust at 2.66, highlighting good cash generation relative to earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.61B	2.66B	2.84B	2.89B	2.26B	2.05B
	Gross Profit
263.49M	270.02M	271.07M	255.24M	205.90M	175.05M
	EBIT
96.01M	109.41M	109.66M	90.07M	53.06M	44.28M
	EBITDA
144.22M	109.41M	158.50M	141.07M	97.39M	74.45M
	Net Income Common Stockholders
52.97M	63.33M	64.31M	68.23M	35.77M	14.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
296.06M	315.15M	277.39M	207.43M	271.75M	390.81M
	Total Assets
2.21B	2.14B	2.27B	2.23B	1.90B	1.74B
	Total Debt
451.78M	366.19M	454.34M	411.64M	221.15M	212.33M
	Net Debt
155.72M	51.04M	176.95M	204.21M	-50.60M	-178.48M
	Total Liabilities
1.13B	1.03B	1.20B	1.20B	930.08M	754.65M
	Stockholders Equity
1.09B	1.11B	1.08B	1.03B	973.80M	989.59M
Cash Flow		Free Cash Flow
140.76M	155.97M	96.56M	-224.24M	-44.80M	80.92M
	Operating Cash Flow
172.27M	189.22M	174.29M	-177.47M	-2.62M	120.44M
	Investing Cash Flow
-30.72M	-32.77M	-77.14M	-41.17M	-41.88M	-34.38M
	Financing Cash Flow
-84.43M	-109.11M	-23.58M	159.23M	-73.95M	-57.53M

Benchmark Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 36.39 is above the 20-day moving average (MA) of 36.15, below the 50-day MA of 36.87, and below the 200-day MA of 42.10, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 66.08 is Neutral, 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
TTMI	73 Outperform	$2.98B	38.60	5.02%	―	11.65%	―
BELFA	71 Outperform	$940.19M	19.37	11.87%	0.35%	-6.15%	-42.24%
BHE	68 Neutral	$1.34B	25.58	4.84%	1.82%	-7.36%	-20.46%
PENG	67 Neutral	$988.66M	―	-1.21%	―	4.71%	95.60%
ROG	64 Neutral	$1.27B	75.48	1.34%	―	-8.06%	-75.10%
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%
MLAB	51 Neutral	$626.60M	―	-89.38%	0.55%	11.68%	-26360.70%

Benchmark Electronics Corporate Events

Benchmark Electronics Approves Proposals at Annual Meeting

On May 14, 2025, Benchmark Electronics held its Annual Meeting where all proposals were approved by shareholders. The meeting resulted in the election of board members who will serve until the 2026 Annual Meeting, approval of executive compensation, and ratification of KPMG LLP as the independent public accounting firm for 2025.

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.

Benchmark Electronics Announces Board Member Departures

On April 2 and 3, 2025, Ramesh Gopalakrishnan and Jeffrey S. McCreary informed Benchmark Electronics’ Board of Directors of their decision not to seek re-election at the upcoming annual shareholders’ meeting on May 14, 2025. Their departures are not due to any disagreements with the company. The Board has nominated Glynis A. Bryan, former CFO of Insight Enterprises, for election to the Board.