Benchmark Electronics (BHE) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: 1.7%
• Average Volume (3M): 244.89K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.22
• Revenue Growth: -7.36%
• EPS Growth: -20.46%
• Country: US
• Employees: 11,700
• Sector: Technology
• Sector Strength: 87
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.52
• Shares Outstanding: 36,095,562
• 10 Day Avg. Volume: 336,472
• 30 Day Avg. Volume: 244,894
• PEG Ratio: 0.15
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.19
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 4.34
• Enterprise Value/Ebitda: 1.84
• 1Y Price Target: $45.00
• Price Target Upside: 11.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $42.00 ▲(4.17%Upside)

Benchmark Electronics demonstrates strong financial stability and positive corporate developments, which are offset by valuation concerns and mixed technical indicators. Earnings call insights reflect sector-specific strengths and challenges, while revenue growth remains a key area for improvement.

Positive Factors

Earnings Performance

BHE experienced some tariff-related demand impact but still delivered a solid earnings performance.

Engineering and Program Awards

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

Guidance Expectations

Guidance for Q2 was modestly below expectations, with revenues expected to be flat to down 8% year-over-year.

Inventory Destocking in Medical

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

Revenue Decline

Q1 revenues declined 6.5% year-over-year, which was worse than the consensus expectation of a 5% decline.

Benchmark Electronics Business Overview & Revenue Model

Company Description

Benchmark Electronics, Inc. (BHE) is a global provider of engineering services, integrated technology solutions, and manufacturing services. The company primarily operates in various sectors, including aerospace and defense, medical technologies, complex industrials, next-generation telecommunications, and advanced computing. Benchmark's core offerings include design and engineering services, precision machining, electronics manufacturing, and aftermarket support.

How the Company Makes Money

Benchmark Electronics generates revenue through a combination of engineering and manufacturing services tailored to high-reliability industries. The company's key revenue streams include contract manufacturing services, where it partners with original equipment manufacturers (OEMs) to design and produce electronic components and systems. Additionally, Benchmark provides advanced technology solutions, such as engineering design services and precision machining, which cater to sectors requiring complex and reliable products. Significant partnerships with leading global companies in industries like aerospace, medical, and telecommunications also contribute to its earnings by establishing long-term contracts and recurring business, ensuring a steady flow of revenue.

Benchmark Electronics Financial Statement Overview

Summary

Benchmark Electronics holds a stable financial position with strong equity and efficient cash generation. Though revenue has slightly declined, profitability margins remain decent. The low debt levels enhance financial stability, but the company faces challenges in revenue growth.

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
EBITDA	144.22M	109.41M	158.50M	141.07M	97.39M	74.45M
Net Income	52.97M	63.33M	64.31M	68.23M	35.77M	14.05M
Balance Sheet
Total Assets	2.14B	2.14B	2.27B	2.23B	1.90B	1.74B
Cash, Cash Equivalents and Short-Term Investments	355.34M	315.15M	277.39M	207.43M	271.75M	390.81M
Total Debt	382.07M	366.19M	454.34M	411.64M	221.15M	212.33M
Total Liabilities	1.03B	1.03B	1.20B	1.20B	930.08M	754.65M
Stockholders Equity	1.10B	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: Positive
• Last Price: 40.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 40.32 is above the 20-day moving average (MA) of 38.27, above the 50-day MA of 37.01, and below the 200-day MA of 41.49, indicating a neutral trend. The MACD of 0.74 indicates Negative momentum. The RSI at 68.59 is Neutral, neither overbought nor oversold. The STOCH value of 86.50 is Negative, 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
TTMI	76 Outperform	$4.24B	55.77	5.02%	―	11.65%	―
BELFA	73 Outperform	$1.23B	25.61	11.87%	0.27%	-6.15%	-42.24%
PENG	71 Outperform	$1.07B	―	-1.21%	―	4.71%	95.60%
BHE	69 Neutral	$1.44B	27.65	4.84%	1.70%	-7.36%	-20.46%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
ROG	63 Neutral	$1.36B	80.86	1.34%	―	-8.06%	-75.10%
MLAB	47 Neutral	$548.98M	―	-1.29%	0.64%	11.47%	99.25%

Benchmark Electronics Corporate Events

Benchmark Electronics Secures $700M Credit Agreement

On June 27, 2025, Benchmark Electronics entered into a $700 million second amended and restated credit agreement with Bank of America, which includes a $550 million revolving credit facility and a $150 million term loan facility, both maturing on June 27, 2030. This agreement replaces the company’s previous $681.25 million credit agreement and introduces an accordion feature allowing for additional term loans or increased commitments up to $175 million, enhancing the company’s financial flexibility for general corporate purposes.

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 Declares Quarterly Dividend Announcement

On June 9, 2025, Benchmark Electronics announced that its Board of Directors declared a quarterly dividend of $0.17 per share, payable on July 11, 2025, to shareholders of record as of June 30, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment and the company’s market positioning.

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 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.