Benchmark Electronics (BHE) AI Stock Analysis

• Market Cap: $1.59B
• Dividend Yield: 1.44%
• Average Volume (3M): 323.90K
• Price to Earnings (P/E): 43.5
• Beta (1Y): 1.37
• 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: 35,678,936
• 10 Day Avg. Volume: 460,209
• 30 Day Avg. Volume: 323,899
• 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: 0.93
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 5.59
• Enterprise Value/Ebitda: 10.60
• 1Y Price Target: $49.00
• Price Target Upside: 9.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.3
• Revenue Forecast (FY): $2.63B

• Rating: 72 Outperform
• Price Target: $49.00 ▲(9.87% Upside)

Benchmark Electronics' overall stock score is driven by strong earnings call performance and positive corporate events, which highlight strategic growth and financial discipline. However, challenges in financial performance and valuation metrics, such as high P/E ratio and declining profitability, temper the overall score. Technical analysis indicates mixed momentum, suggesting cautious optimism.

Positive Factors

Strong Performance in Medical and A&D Sectors

Growth in medical and aerospace sectors indicates strong demand and market positioning, supporting long-term revenue stability and expansion.

Executive Leadership Changes

Leadership transition with experienced executives may enhance strategic direction and operational execution, positively impacting long-term growth.

Record Free Cash Flow

Strong cash flow generation enhances financial flexibility, enabling strategic investments and strengthening the balance sheet over time.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest challenges in cost management and pricing power, potentially impacting long-term profitability and competitiveness.

Semi-cap Sector Challenges

Weakness in the semi-cap sector reflects demand volatility and external pressures, posing risks to revenue stability and diversification efforts.

Cash Flow Generation Concerns

Declining operating cash flow may limit the company's ability to fund growth initiatives and manage financial obligations, affecting long-term sustainability.

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, where it partners with original equipment manufacturers (OEMs) to produce electronic components and systems. Key revenue streams include manufacturing services, engineering services, and supply chain management solutions. The company benefits from long-term contracts with major clients in various sectors, which provide a stable revenue base. Additionally, Benchmark's focus on high-growth industries, such as medical technology and aerospace, allows it to capitalize on increasing demand for advanced electronic solutions. Strategic partnerships with technology leaders and investments in R&D further enhance its competitive position and contribute to its earnings.

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	285.42M	315.15M	277.39M	207.43M	271.75M	390.81M
Total Debt	318.20M	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: Neutral
• Last Price: 44.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 44.6 is below the 20-day moving average (MA) of 45.91, above the 50-day MA of 43.92, and above the 200-day MA of 39.47, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 7.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BHE.

Benchmark Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	79 Outperform	$8.27B	34.31	10.81%	―	7.40%	13.79%
TTMI	77 Outperform	$7.27B	56.50	8.12%	―	17.88%	91.41%
FLEX	74 Outperform	$23.76B	28.15	17.45%	―	0.77%	0.51%
JBL	73 Outperform	$24.21B	35.24	47.87%	0.14%	13.18%	-38.37%
BHE	72 Outperform	$1.59B	43.51	3.37%	1.44%	-2.93%	-40.33%
ST	63 Neutral	$4.94B	-177.73	-0.92%	1.42%	-8.07%	63.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Benchmark Electronics Corporate Events

Benchmark Electronics Announces Executive Leadership Changes

Benchmark Electronics has announced a series of executive changes as part of its succession planning. David Moezidis will become the CEO following Jeffrey W. Benck’s retirement on March 31, 2026, and has been promoted to President, resulting in an increased salary and target annual cash incentive compensation.

Benchmark Electronics Declares Quarterly Dividend

On December 15, 2025, Benchmark Electronics announced that its Board of Directors declared a quarterly dividend of $0.17 per share, payable on January 13, 2026, to shareholders of record as of December 31, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively influence its market positioning and investor relations.

Benchmark Electronics Appoints New Chief Commercial Officer

On December 10, 2025, Benchmark Electronics announced the appointment of David L. Cummings as Senior Vice President and Chief Commercial Officer, succeeding David Moezidis, who will become CEO in March 2026. Cummings, with over 20 years of experience in global customer management and supply chain transformation, is expected to accelerate Benchmark’s commercial strategy and growth, enhancing its customer-centric innovation and operational excellence.

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.