BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
NYSE:BHE - New York Stock Exchange, Inc. - US08160H1014 - Common Stock - Currency: USD
Taking everything into account, BHE scores 6 out of 10 in our fundamental rating. BHE was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. BHE has an average financial health and profitability rating. BHE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BHE had positive earnings in the past year.
BHE had a positive operating cash flow in the past year.
Each year in the past 5 years BHE has been profitable.
The reported operating cash flow has been mixed in the past 5 years: BHE reported negative operating cash flow in multiple years.
1.2 Ratios
BHE has a Return On Assets of 2.48%. This is in the better half of the industry: BHE outperforms 61.60% of its industry peers.
With a Return On Equity value of 4.79%, BHE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.68%, BHE is doing good in the industry, outperforming 66.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BHE is below the industry average of 9.29%.
The 3 year average ROIC (5.67%) for BHE is below the current ROIC(5.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 4.79% | ||
| ROIC | 5.68% |
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
BHE's Profit Margin of 2.03% is in line compared to the rest of the industry. BHE outperforms 59.20% of its industry peers.
BHE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 4.21%, BHE is doing good in the industry, outperforming 62.40% of the companies in the same industry.
BHE's Operating Margin has improved in the last couple of years.
BHE has a worse Gross Margin (10.17%) than 76.80% of its industry peers.
BHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.21% | ||
| PM (TTM) | 2.03% | ||
| GM | 10.17% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BHE is destroying value.
Compared to 1 year ago, BHE has more shares outstanding
BHE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BHE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.03 indicates that BHE is not in any danger for bankruptcy at the moment.
BHE has a Altman-Z score (3.03) which is in line with its industry peers.
The Debt to FCF ratio of BHE is 1.96, which is an excellent value as it means it would take BHE, only 1.96 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.96, BHE is doing good in the industry, outperforming 76.80% of the companies in the same industry.
BHE has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
BHE's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. BHE outperforms 46.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.58
WACC9.75%
2.3 Liquidity
A Current Ratio of 2.37 indicates that BHE has no problem at all paying its short term obligations.
BHE has a Current ratio (2.37) which is comparable to the rest of the industry.
BHE has a Quick Ratio of 1.48. This is a normal value and indicates that BHE is financially healthy and should not expect problems in meeting its short term obligations.
BHE has a Quick ratio (1.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.13% over the past year.
The Earnings Per Share has been growing by 11.75% on average over the past years. This is quite good.
Looking at the last year, BHE shows a decrease in Revenue. The Revenue has decreased by -7.36% in the last year.
The Revenue has been growing slightly by 3.21% on average over the past years.
EPS 1Y (TTM)4.13%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%-5.45%
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%-6.48%
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 7.62% on average per year.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y1.77%
EPS Next 2Y7.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.56%
Revenue Next 2Y3.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
BHE is valuated correctly with a Price/Earnings ratio of 15.98.
Compared to the rest of the industry, the Price/Earnings ratio of BHE indicates a rather cheap valuation: BHE is cheaper than 81.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, BHE is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.62 indicates a correct valuation of BHE.
Based on the Price/Forward Earnings ratio, BHE is valued cheaper than 84.00% 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 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHE is valued cheaper than 92.80% of the companies in the same industry.
92.00% of the companies in the same industry are more expensive than BHE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.3 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BHE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.03
PEG (5Y)1.36
EPS Next 2Y7.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, 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 92.00% of the companies listed in the same industry.
BHE's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 Years0
Div Non Decr Years5
5.3 Sustainability
45.58% of the earnings are spent on dividend by BHE. This is a bit on the high side, but may be sustainable.
The dividend of BHE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.58%
EPS Next 2Y7.62%
EPS Next 3YN/A
36.27
-0.12 (-0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.74%
Inst Owner Change1.7%
Ins Owners2.17%
Ins Owner Change5.26%
Market Cap1.31B
Analysts77.5
Price Target45.9 (26.55%)
Short Float %4.27%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend0.67
Dividend Growth(5Y)2.33%
DP45.58%
Div Incr Years0
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.01%
Min EPS beat(2)2.46%
Max EPS beat(2)7.56%
EPS beat(4)4
Avg EPS beat(4)6.37%
Min EPS beat(4)2.46%
Max EPS beat(4)11.2%
EPS beat(8)8
Avg EPS beat(8)6.98%
EPS beat(12)11
Avg EPS beat(12)7.06%
EPS beat(16)15
Avg EPS beat(16)8.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-1.57%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)3.7%
Revenue beat(8)5
Avg Revenue beat(8)0.86%
Revenue beat(12)8
Avg Revenue beat(12)2.01%
Revenue beat(16)11
Avg Revenue beat(16)2.46%
PT rev (1m)-9.09%
PT rev (3m)-1.46%
EPS NQ rev (1m)2.46%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)-4.14%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)-3.85%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.62 | ||
| P/S | 0.5 | ||
| P/FCF | 9.3 | ||
| P/OCF | 7.6 | ||
| P/B | 1.19 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 7.89 |
EPS(TTM)2.27
EY6.26%
EPS(NY)2.66
Fwd EY7.34%
FCF(TTM)3.9
FCFY10.75%
OCF(TTM)4.77
OCFY13.16%
SpS72.36
BVpS30.6
TBVpS24.08
PEG (NY)9.03
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 4.79% | ||
| ROCE | 7.34% | ||
| ROIC | 5.68% | ||
| ROICexc | 7.44% | ||
| ROICexgc | 9.37% | ||
| OM | 4.21% | ||
| PM (TTM) | 2.03% | ||
| GM | 10.17% | ||
| FCFM | 5.39% |
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%
ROICexcg growth 3Y10.04%
ROICexcg 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 Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.96 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 68.02% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 4.29 | ||
| Cash Conversion | 110.17% | ||
| Profit Quality | 265.75% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.03 |
F-Score7
WACC9.75%
ROIC/WACC0.58
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)4.13%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%-5.45%
EPS Next Y1.77%
EPS Next 2Y7.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%-6.48%
Revenue Next Year-0.56%
Revenue Next 2Y3.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.36%
EBIT growth 3Y20.13%
EBIT growth 5Y22.68%
EBIT Next Year49.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y169.73%
FCF growth 3YN/A
FCF growth 5Y21.87%
OCF growth 1Y228.23%
OCF growth 3YN/A
OCF growth 5Y15.23%