BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
USA - NYSE:BHE - US08160H1014 - Common Stock
44.12 USD
-1.25 (-2.76%)
44.12 USD
0 (0%)
Taking everything into account, BHE scores 5 out of 10 in our fundamental rating. BHE was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. BHE has only an average score on both its financial health and profitability. BHE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BHE was profitable.
In the past year BHE had a positive cash flow from operations.
In the past 5 years BHE has always been profitable.
In multiple years BHE reported negative operating cash flow during the last 5 years.
1.2 Ratios
BHE has a Return On Assets of 1.89%. This is comparable to the rest of the industry: BHE outperforms 55.65% of its industry peers.
With a Return On Equity value of 3.47%, BHE perfoms like the industry average, outperforming 55.65% of the companies in the same industry.
BHE has a Return On Invested Capital of 5.61%. This is in the better half of the industry: BHE outperforms 61.29% of its industry peers.
BHE had an Average Return On Invested Capital over the past 3 years of 5.67%. This is below the industry average of 9.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 3.47% | ||
| ROIC | 5.61% |
ROA(3y)2.95%
ROA(5y)2.31%
ROE(3y)6.1%
ROE(5y)4.68%
ROIC(3y)5.67%
ROIC(5y)4.78%
1.3 Margins
Looking at the Profit Margin, with a value of 1.48%, BHE is in line with its industry, outperforming 53.23% of the companies in the same industry.
BHE's Profit Margin has improved in the last couple of years.
BHE has a Operating Margin of 4.03%. This is comparable to the rest of the industry: BHE outperforms 58.87% of its industry peers.
BHE's Operating Margin has improved in the last couple of years.
BHE's Gross Margin of 10.14% is on the low side compared to the rest of the industry. BHE is outperformed by 80.65% of its industry peers.
BHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.03% | ||
| PM (TTM) | 1.48% | ||
| GM | 10.14% |
OM growth 3Y13.76%
OM growth 5Y18.87%
PM growth 3Y14.55%
PM growth 5Y18.21%
GM growth 3Y3.65%
GM growth 5Y4.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BHE is destroying value.
The number of shares outstanding for BHE has been increased compared to 1 year ago.
The number of shares outstanding for BHE has been reduced compared to 5 years ago.
The debt/assets ratio for BHE has been reduced compared to a year ago.
2.2 Solvency
BHE has an Altman-Z score of 3.38. This indicates that BHE is financially healthy and has little risk of bankruptcy at the moment.
BHE has a Altman-Z score (3.38) which is in line with its industry peers.
The Debt to FCF ratio of BHE is 2.65, which is a good value as it means it would take BHE, 2.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.65, BHE is in the better half of the industry, outperforming 71.77% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that BHE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.18, BHE perfoms like the industry average, outperforming 46.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.59
WACC9.5%
2.3 Liquidity
BHE has a Current Ratio of 2.36. This indicates that BHE is financially healthy and has no problem in meeting its short term obligations.
BHE has a Current ratio of 2.36. This is comparable to the rest of the industry: BHE outperforms 51.61% of its industry peers.
A Quick Ratio of 1.46 indicates that BHE should not have too much problems paying its short term obligations.
The Quick ratio of BHE (1.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.32% over the past year.
BHE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.75% yearly.
BHE shows a decrease in Revenue. In the last year, the revenue decreased by -6.44%.
Measured over the past years, BHE shows a small growth in Revenue. The Revenue has been growing by 3.21% on average per year.
EPS 1Y (TTM)1.32%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%8.77%
Revenue 1Y (TTM)-6.44%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%3.49%
3.2 Future
Based on estimates for the next years, BHE will show a small growth in Earnings Per Share. The EPS will grow by 5.67% on average per year.
Based on estimates for the next years, BHE will show a small growth in Revenue. The Revenue will grow by 2.34% on average per year.
EPS Next Y1.11%
EPS Next 2Y5.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.04%
Revenue Next 2Y2.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.18 indicates a rather expensive valuation of BHE.
BHE's Price/Earnings ratio is a bit cheaper when compared to the industry. BHE is cheaper than 79.84% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, BHE is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.18, which indicates a rather expensive current valuation of BHE.
Based on the Price/Forward Earnings ratio, BHE is valued a bit cheaper than 78.23% of the companies in the same industry.
BHE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BHE indicates a rather cheap valuation: BHE is cheaper than 84.68% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BHE indicates a rather cheap valuation: BHE is cheaper than 81.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.23 | ||
| EV/EBITDA | 10.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BHE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)17.29
PEG (5Y)1.63
EPS Next 2Y5.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, BHE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.07, BHE pays a better dividend. On top of this BHE pays more dividend than 92.74% of the companies listed in the same industry.
BHE's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of BHE has a limited annual growth rate of 2.33%.
BHE has been paying a dividend for over 5 years, so it has already some track record.
As BHE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.33%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
BHE pays out 63.34% of its income as dividend. This is not a sustainable payout ratio.
The dividend of BHE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.34%
EPS Next 2Y5.67%
EPS Next 3YN/A
44.12
-1.25 (-2.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.62%
Inst Owner Change0.25%
Ins Owners1.28%
Ins Owner Change0.54%
Market Cap1.58B
Revenue(TTM)2.66B
Net Income(TTM)38.41M
Analysts77.5
Price Target45.65 (3.47%)
Short Float %3.16%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend0.67
Dividend Growth(5Y)2.33%
DP63.34%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)0.38%
Max EPS beat(2)2.46%
EPS beat(4)4
Avg EPS beat(4)3.67%
Min EPS beat(4)0.38%
Max EPS beat(4)7.56%
EPS beat(8)8
Avg EPS beat(8)6.77%
EPS beat(12)11
Avg EPS beat(12)5.36%
EPS beat(16)15
Avg EPS beat(16)8.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)0.19%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)7
Avg Revenue beat(12)0.85%
Revenue beat(16)10
Avg Revenue beat(16)2.34%
PT rev (1m)0%
PT rev (3m)-0.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 17.18 | ||
| P/S | 0.61 | ||
| P/FCF | 20.23 | ||
| P/OCF | 13.94 | ||
| P/B | 1.43 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)2.3
EY5.21%
EPS(NY)2.57
Fwd EY5.82%
FCF(TTM)2.18
FCFY4.94%
OCF(TTM)3.16
OCFY7.17%
SpS72.09
BVpS30.82
TBVpS24.33
PEG (NY)17.29
PEG (5Y)1.63
Graham Number39.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 3.47% | ||
| ROCE | 7.25% | ||
| ROIC | 5.61% | ||
| ROICexc | 6.87% | ||
| ROICexgc | 8.57% | ||
| OM | 4.03% | ||
| PM (TTM) | 1.48% | ||
| GM | 10.14% | ||
| FCFM | 3.03% |
ROA(3y)2.95%
ROA(5y)2.31%
ROE(3y)6.1%
ROE(5y)4.68%
ROIC(3y)5.67%
ROIC(5y)4.78%
ROICexc(3y)6.91%
ROICexc(5y)6%
ROICexgc(3y)8.59%
ROICexgc(5y)7.73%
ROCE(3y)7.33%
ROCE(5y)6.18%
ROICexgc growth 3Y10.04%
ROICexgc growth 5Y15.2%
ROICexc growth 3Y12.99%
ROICexc growth 5Y17.65%
OM growth 3Y13.76%
OM growth 5Y18.87%
PM growth 3Y14.55%
PM growth 5Y18.21%
GM growth 3Y3.65%
GM growth 5Y4.44%
F-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.65 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 75.27% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 4.39 | ||
| Cash Conversion | 75.14% | ||
| Profit Quality | 203.9% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.38 |
F-Score7
WACC9.5%
ROIC/WACC0.59
Cap/Depr(3y)116.32%
Cap/Depr(5y)105.1%
Cap/Sales(3y)1.87%
Cap/Sales(5y)1.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.32%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%8.77%
EPS Next Y1.11%
EPS Next 2Y5.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.44%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%3.49%
Revenue Next Year-1.04%
Revenue Next 2Y2.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.68%
EBIT growth 3Y20.13%
EBIT growth 5Y22.68%
EBIT Next Year49.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y151.13%
FCF growth 3YN/A
FCF growth 5Y21.87%
OCF growth 1Y234.75%
OCF growth 3YN/A
OCF growth 5Y15.23%
BENCHMARK ELECTRONICS INC / BHE FAQ
What is the fundamental rating for BHE stock?
ChartMill assigns a fundamental rating of 5 / 10 to BHE.
What is the valuation status of BENCHMARK ELECTRONICS INC (BHE) stock?
ChartMill assigns a valuation rating of 5 / 10 to BENCHMARK ELECTRONICS INC (BHE). This can be considered as Fairly Valued.
How profitable is BENCHMARK ELECTRONICS INC (BHE) stock?
BENCHMARK ELECTRONICS INC (BHE) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for BHE stock?
The Earnings per Share (EPS) of BENCHMARK ELECTRONICS INC (BHE) is expected to grow by 1.11% in the next year.
Is the dividend of BENCHMARK ELECTRONICS INC sustainable?
The dividend rating of BENCHMARK ELECTRONICS INC (BHE) is 5 / 10 and the dividend payout ratio is 63.34%.