Benchmark Electronics (BHE)
NYSE:BHE
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Benchmark Electronics
(NYSE:BHE)
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Rating:62Neutral
Price Target:
$57.00
▼(-0.05% Downside)
Action:ReiteratedDate:03/17/26
The score is driven mainly by solid financial footing (low leverage and improved free cash flow) and a supportive earnings call outlook (bookings momentum and Q1 growth guidance). It is held back by elevated valuation (high P/E with modest yield) and weaker near-term technical momentum (negative MACD and sub-50 RSI).
Positive Factors
Balance sheet strength
A materially lower debt load and ~0.29 debt-to-equity give Benchmark durable financial flexibility. This reduces refinancing risk, supports capital returns and strategic investments, and provides a multi‑quarter buffer to absorb cyclical revenue swings without threatening solvency.
Negative Factors
Thin profitability and margin pressure
Very slim net and operating margins leave limited cushion against cost inflation, procurement shocks, or lower volumes. Even modest adverse swings materially compress earnings and ROE, constraining durable shareholder returns and making long‑term margin recovery critical to value creation.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A materially lower debt load and ~0.29 debt-to-equity give Benchmark durable financial flexibility. This reduces refinancing risk, supports capital returns and strategic investments, and provides a multi‑quarter buffer to absorb cyclical revenue swings without threatening solvency.
Read all positive factors
Benchmark Electronics (BHE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.03B
Dividend Yield1.44%
Average Volume (3M)381.64K
Price to Earnings (P/E)61.4
Beta (1Y)1.30
Revenue Growth-2.93%
EPS Growth-40.33%
CountryUS
Employees11,700
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.71
Shares Outstanding35,667,046
10 Day Avg. Volume444,494
30 Day Avg. Volume381,637
Financial Highlights & Ratios
PEG Ratio-1.02
Price to Book (P/B)1.39
Price to Sales (P/S)0.57
P/FCF Ratio17.86
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit7.87
Enterprise Value/Ebitda16.40
Forecast
1Y Price Target
$62.00Price Target Upside8.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.5
Revenue Forecast (FY)$2.82B
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 ...
How the Company Makes Money
Benchmark primarily makes money by performing outsourced manufacturing and related services for OEM customers under manufacturing programs that convert customer demand forecasts and purchase orders into shipped products. Its main revenue stream is...
Benchmark Electronics Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call communicated clear operational progress: Q4 revenue growth, an EPS beat, sequential margin expansion, strong cash generation, bookings momentum across higher-growth areas (space, MedTech, AI), and targeted capacity investments. Key near-term challenges include semi cap cyclicality (notably a weak Q4), a full-year flat revenue profile, modest full-year operating margin pressure from variable compensation, one-time tax and impairment adjustments, and a planned step-up in CapEx as new facilities and equipment are brought online. Management expects semi recovery in 2026 and provided mid-single-digit revenue growth guidance, indicating cautious optimism while they invest to capture recently won business.Positive Updates
Q4 Revenue Growth and EPS Beat
Fourth quarter revenue of $704M, up 7% year-over-year, and non-GAAP EPS of $0.71, which exceeded prior guidance of $0.62–$0.68.
Negative Updates
Semi Cap Softness in Q4 and 2025 Dynamics
Semi cap revenue declined 8% Q/Q and 14% YoY in Q4, reflecting a softer quarter and China import restriction headwinds; full-year semi cap grew only 2% and recovery timing remains subject to customer visibility.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue Growth and EPS Beat
Fourth quarter revenue of $704M, up 7% year-over-year, and non-GAAP EPS of $0.71, which exceeded prior guidance of $0.62–$0.68.
Read all positive updates
Company Guidance
For Q1 2026, Benchmark guided revenue of $655–$695 million (up about 7% year‑over‑year at the midpoint), non‑GAAP gross margin of 10.4%–10.6% and non‑GAAP operating margin of 4.7%–4.9%; non‑GAAP diluted EPS is expected to be $0.53–$0.59, with GAAP including roughly $5.4 million of stock‑based compensation and $5.1–$5.5 million of non‑operating charges (amortization, restructuring, other), interest and other expense of about $4.7 million, an effective tax rate of roughly 26%–27% (for both Q1 and the full year), and a weighted average share count near 36.3 million.Benchmark Electronics Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
78
Positive
Cash Flow
70
Positive
| 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
Positive
57.03
Price Trends
55.64
Positive
50.49
Positive
44.99
Positive
Market Momentum
0.30
Negative
50.51
Neutral
46.39
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 57.03 is above the 20-day moving average (MA) of 55.35, above the 50-day MA of 55.64, and above the 200-day MA of 44.99, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHE.
Benchmark Electronics Risk Analysis
Benchmark Electronics disclosed 35 risk factors in its most recent earnings report. Benchmark Electronics reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Benchmark Electronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $25.08B | 23.76 | 16.83% | ― | 0.77% | 0.51% | |
69 Neutral | $28.81B | 31.64 | 58.99% | 0.14% | 13.18% | -38.37% | |
68 Neutral | $5.10B | 155.81 | 1.11% | 1.43% | -8.07% | 63.50% | |
68 Neutral | $10.27B | 41.17 | 10.61% | ― | 17.88% | 91.41% | |
66 Neutral | $7.20B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
62 Neutral | $2.03B | 61.39 | 2.25% | 1.44% | -2.93% | -40.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BHE
Benchmark Electronics
57.03
24.61
75.91%
FLEX
Flex
68.21
40.41
145.36%
JBL
Jabil
272.85
152.69
127.07%
SANM
Sanmina-Sci
131.82
61.30
86.93%
ST
Sensata
34.99
17.57
100.84%
TTMI
TTM Technologies
99.29
81.72
465.11%
Benchmark Electronics Corporate Events
Dividends
Benchmark Electronics Declares First-Quarter Cash Dividend for 2026
Positive
Mar 16, 2026
Benchmark Electronics, Inc., a global provider of engineering design, supply chain, and manufacturing services to sectors including advanced computing, aerospace and defense, industrial, medical, and semiconductor capital equipment, announced a sh...
Business Operations and StrategyExecutive/Board Changes
Benchmark Electronics Finalizes CEO Moezidis Employment Agreement
Positive
Feb 24, 2026
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 al...
Executive/Board Changes
Benchmark Electronics announces upcoming CTO leadership transition
Neutral
Dec 29, 2025
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 stat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.