Benchmark Electronics (BHE) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: 1.51%
• Average Volume (3M): 270.98K
• Price to Earnings (P/E): 41.0
• 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): 0.62
• Shares Outstanding: 35,910,706
• 10 Day Avg. Volume: 216,541
• 30 Day Avg. Volume: 270,977
• 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: 0.95
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 5.59
• Enterprise Value/Ebitda: 10.60
• 1Y Price Target: $49.00
• Price Target Upside: 8.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $51.00 ▲(12.73% Upside)

The overall stock score of 69 reflects strong earnings performance and positive guidance, which are offset by concerns over valuation and technical indicators suggesting an overbought condition. Financial performance shows stability but highlights areas for improvement in profitability and cash flow.

Positive Factors

Strong Sector Performance

The medical and aerospace & defense sectors showed significant growth, indicating robust demand and a strong market position in these key industries.

Strategic Wins

Continued momentum with new bookings and strategic customer wins supports future growth and strengthens Benchmark's competitive positioning.

Cash Flow Management

Generating $25 million in free cash flow during Q3 reflects strong financial discipline and effective cash management, crucial for long-term sustainability.

Negative Factors

Revenue Growth Challenges

Volatile revenue growth and a recent drop highlight challenges in maintaining consistent top-line expansion, impacting long-term growth prospects.

Profitability Concerns

Decreasing net profit margins indicate reduced profitability, which could hinder Benchmark's ability to reinvest in growth and innovation.

Cash Flow Generation

Declining operating cash flow suggests challenges in cash generation, potentially limiting Benchmark's ability to fund operations and strategic initiatives.

Benchmark Electronics Business Overview & Revenue Model

Company Description

Benchmark Electronics, Inc. (BHE) is a leading provider of integrated manufacturing and engineering services, primarily serving the aerospace and defense, industrial, medical, and telecommunications sectors. The company specializes in product design, engineering, manufacturing, and supply chain management, offering a wide range of services that encompass the entire product lifecycle. Benchmark is known for its advanced technology capabilities, including precision machining, electronics assembly, and complex system integration, enabling it to deliver high-quality, reliable solutions to its customers worldwide.

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 demonstrates stable operational efficiency with consistent EBIT and EBITDA margins. However, challenges in revenue growth and profitability are evident, with declining net profit margins and return on equity. The balance sheet shows improved leverage, but cash flow generation remains a concern.

Income Statement

Benchmark Electronics shows a stable gross profit margin of around 10% in the TTM period, with a slight decline from the previous year. The net profit margin has decreased to 1.43% in the TTM, indicating reduced profitability. Revenue growth has been volatile, with a significant drop in the TTM period. However, EBIT and EBITDA margins remain relatively stable, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. Return on equity has decreased to 3.47%, reflecting lower profitability. The equity ratio remains stable, showing a solid capital structure.

Cash Flow

Operating cash flow has decreased significantly in the TTM period, impacting the operating cash flow to net income ratio. Free cash flow growth is negative, indicating challenges in generating cash. However, the free cash flow to net income ratio remains healthy, suggesting efficient cash utilization.

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	263.21M	270.02M	271.07M	255.24M	205.90M	175.05M
EBITDA	138.76M	156.96M	158.50M	141.49M	98.03M	74.45M
Net Income	37.30M	63.33M	64.31M	68.23M	35.77M	14.05M
Balance Sheet
Total Assets	2.07B	2.14B	2.27B	2.23B	1.90B	1.74B
Cash, Cash Equivalents and Short-Term Investments	286.06M	315.15M	277.39M	207.43M	271.75M	390.81M
Total Debt	332.92M	366.19M	454.34M	411.64M	221.15M	212.33M
Total Liabilities	958.09M	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	74.92M	155.97M	96.56M	-220.82M	-44.80M	80.92M
Operating Cash Flow	111.20M	189.22M	174.29M	-177.47M	-2.62M	120.44M
Investing Cash Flow	-31.84M	-32.77M	-77.14M	-41.17M	-41.88M	-34.38M
Financing Cash Flow	-120.82M	-109.11M	-23.58M	159.23M	-73.95M	-57.53M

Benchmark Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 45.24 is above the 20-day moving average (MA) of 43.52, above the 50-day MA of 40.73, and above the 200-day MA of 38.87, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 51.57 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
SANM	78 Outperform	$9.29B	37.93	10.38%	―	7.40%	13.79%
FLEX	74 Outperform	$23.53B	27.15	17.45%	―	0.77%	0.51%
TTMI	71 Outperform	$7.22B	54.09	8.12%	―	17.88%	91.41%
BHE	69 Neutral	$1.54B	41.01	3.37%	1.51%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	61 Neutral	$23.43B	37.01	40.43%	0.15%	3.18%	-46.01%
ST	61 Neutral	$4.55B	―	-0.92%	1.53%	-8.07%	63.50%

Benchmark Electronics Corporate Events

Benchmark Electronics Q3 Earnings Call Highlights Strong Growth

Benchmark Electronics Reports Strong Q3 Performance Amid Sector Challenges

Benchmark Electronics Reports Solid Q3 2025 Results

Benchmark Electronics, Inc. is a company specializing in providing comprehensive solutions across the entire product lifecycle, with a focus on industries such as advanced computing and communications, aerospace and defense, industrial, medical, and semiconductor capital equipment. The company is known for its innovative technology and engineering design services, optimized global supply chain, and world-class manufacturing services.

Benchmark Electronics Appoints Dr. Slessor to Board

On October 7, 2025, Benchmark Electronics announced the appointment of Dr. Michael Slessor to its Board of Directors following the unexpected passing of Mr. Robert Gifford. Dr. Slessor, who has over 25 years of experience in the semiconductor industry and is currently the CEO of FormFactor, Inc., will also serve on the Board’s audit committee. His appointment is seen as a strategic move to enhance Benchmark’s leadership and innovation, with expectations that his expertise will significantly contribute to the company’s future and create value for shareholders.

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 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.