Benchmark Electronics Inc (BHE) stock analysis

P/E above its 5-year median

Benchmark Electronics's P/E of 41.9 is above its own 5-year median of 23.1.

P/E above the industry

Benchmark Electronics's P/E of 41.9 is above the Electronic Components and Accessories median of 34.8.

EV/EBITDA above its 5-year median

Benchmark Electronics's EV/EBITDA of 14.5 is above its 5-year median of 8.7.

P/B below the industry

Benchmark Electronics's price-to-book of 2.06 is below the Electronic Components and Accessories median of 3.49.

Trading above fair value

The share price of $64.98 is above our fair value estimate of $53.89.

Margin of safety under 20%

The price is 20.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -2.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -29.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 59.6% over the last twelve months, against a 5-year average of 12.1% a year.

Growing slower than the industry

Revenue grew 12.9% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance raised

Benchmark Electronics raised its full year revenue growth outlook on Jul 29, 2026.

Gross margin improving

Gross margin was 10.4% over the last twelve months, against 10.1% a year earlier.

Return on equity under 15%

Return on equity was 5.0% over the last twelve months and averaged 5.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Benchmark Electronics's return on equity of 5.0% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 12.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.9% over the last twelve months, against a 5-year average of 1.9%.

Net margin below the industry

Benchmark Electronics's net margin of 1.9% is below the Electronic Components and Accessories median of 2.9%.

Low debt

Debt is 14.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 14.2% five years ago to 14.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 108% of total debt.

Interest well covered

Operating income covers interest expense 6.9 times.

Short-term assets cover short-term debts

Current assets are 1.87 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.36; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Benchmark Electronics paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Benchmark Electronics yields 1.0%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 43.4% of net income.

Covered by free cash flow

Dividends take 20.9% of free cash flow.