Benchmark Electronics, Inc.
Benchmark Electronics, Inc. Fundamental Analysis
Benchmark Electronics, Inc. (BHE) shows weak financial fundamentals with a PE ratio of 83.49, profit margin of 0.93%, and ROE of 2.25%. The company generates $2.7B in annual revenue with weak year-over-year growth of -6.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BHE's fundamental strength across five key dimensions:
Efficiency Score
WeakBHE struggles to generate sufficient returns from assets.
Valuation Score
ModerateBHE shows balanced valuation metrics.
Growth Score
WeakBHE faces weak or negative growth trends.
Financial Health Score
ExcellentBHE maintains a strong and stable balance sheet.
Profitability Score
ModerateBHE maintains healthy but balanced margins.
Key Financial Metrics
Is BHE Expensive or Cheap?
P/E Ratio
BHE trades at 83.49 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BHE's PEG of -2.55 indicates potential undervaluation.
Price to Book
The market values Benchmark Electronics, Inc. at 1.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.30 times EBITDA. This signals the market has high growth expectations.
How Well Does BHE Make Money?
Net Profit Margin
For every $100 in sales, Benchmark Electronics, Inc. keeps $0.93 as profit after all expenses.
Operating Margin
Core operations generate 2.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.25 in profit for every $100 of shareholder equity.
ROA
Benchmark Electronics, Inc. generates $1.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Benchmark Electronics, Inc. generates limited operating cash flow of $124.78M, signaling weaker underlying cash strength.
Free Cash Flow
Benchmark Electronics, Inc. produces free cash flow of $85.98M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.39 in free cash annually.
FCF Yield
BHE converts 4.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
83.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How BHE Stacks Against Its Sector Peers
| Metric | BHE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 83.49 | 35.19 | Worse (Expensive) |
| ROE | 2.25% | 1155.00% | Weak |
| Net Margin | 0.93% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.37 | 0.41 | Neutral |
| Current Ratio | 2.28 | 4.71 | Strong Liquidity |
| ROA | 1.20% | -314918.00% (disorted) | Weak |
BHE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Benchmark Electronics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.82%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
188.14%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
116.55%
Industry Style: Growth, Innovation, High Beta
High Growth