Benchmark Electronics (BHE) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: 1.75%
• Average Volume (3M): 236.44K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.22
• Revenue Growth: -7.36%
• EPS Growth: -20.46%
• Country: US
• Employees: 11,700
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.52
• Shares Outstanding: 36,095,562
• 10 Day Avg. Volume: 202,122
• 30 Day Avg. Volume: 236,435
• PEG Ratio: N/A
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.07
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 5.42
• Enterprise Value/Ebitda: 2.31
• 1Y Price Target: $45.00
• Price Target Upside: 15.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $42.00 ▲(7.94%Upside)

Benchmark Electronics is financially stable with low leverage and decent profitability margins. However, it faces challenges in revenue growth and valuation concerns. The company is supported by positive corporate actions, including new credit agreements and dividend declarations, which enhance financial flexibility and investor confidence. The technical indicators suggest weak momentum but potential for reversal.

Positive Factors

Earnings Performance

BHE posted stronger than expected Q4 earnings with in-line revenues.

Market Demand

Solid demand trends across most of its market verticals support BHE's positive outlook.

Negative Factors

Future Revenue Guidance

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

Revenue Performance

Q1 revenues declined 6.5% year over year, compared to the consensus of a 5% decline.

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 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 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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.66B	2.84B	2.89B	2.26B	2.05B
Gross Profit	270.02M	271.07M	255.24M	205.90M	175.05M
EBITDA	109.41M	158.50M	141.07M	97.39M	74.45M
Net Income	63.33M	64.31M	68.23M	35.77M	14.05M
Balance Sheet
Total Assets	2.14B	2.27B	2.23B	1.90B	1.74B
Cash, Cash Equivalents and Short-Term Investments	315.15M	277.39M	207.43M	271.75M	390.81M
Total Debt	366.19M	454.34M	411.64M	221.15M	212.33M
Total Liabilities	1.03B	1.20B	1.20B	930.08M	754.65M
Stockholders Equity	1.11B	1.08B	1.03B	973.80M	989.59M
Cash Flow
Free Cash Flow	155.97M	96.56M	-224.24M	-44.80M	80.92M
Operating Cash Flow	189.22M	174.29M	-177.47M	-2.62M	120.44M
Investing Cash Flow	-32.77M	-77.14M	-41.17M	-41.88M	-34.38M
Financing Cash Flow	-109.11M	-23.58M	159.23M	-73.95M	-57.53M

Benchmark Electronics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 38.91 is below the 20-day moving average (MA) of 39.56, above the 50-day MA of 38.19, and below the 200-day MA of 41.22, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 41.00 is Neutral, 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
BELFA	75 Outperform	$1.50B	26.53	13.40%	0.22%	6.08%	-21.75%
TTMI	74 Outperform	$4.60B	60.48	5.02%	―	11.65%	―
BHE	69 Neutral	$1.40B	26.88	4.84%	1.75%	-7.36%	-20.46%
PENG	66 Neutral	$1.32B	―	-1.80%	―	14.09%	91.13%
Sector *	63 Neutral	$34.78B	5.17	-11.38%	1.67%	5.54%	-17.15%
ROG	61 Neutral	$1.21B	71.88	1.34%	―	-8.06%	-75.10%
MLAB	45 Neutral	$416.02M	―	-1.29%	0.85%	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.