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. Both the profitability and the financial health of BHE get a neutral evaluation. Nothing too spectacular is happening here. BHE is not valued too expensively and it also shows a decent growth rate.
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.
BHE had positive earnings in each of the past 5 years.
In multiple years BHE reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of BHE (2.48%) is better than 64.00% of its industry peers.
BHE's Return On Equity of 4.79% is fine compared to the rest of the industry. BHE outperforms 61.60% of its industry peers.
BHE has a better Return On Invested Capital (5.68%) than 64.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHE is below the industry average of 9.35%.
The last Return On Invested Capital (5.68%) for BHE is above the 3 year average (5.67%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 2.03%, BHE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BHE has grown nicely.
BHE's Operating Margin of 4.21% is in line compared to the rest of the industry. BHE outperforms 60.00% of its industry peers.
BHE's Operating Margin has improved in the last couple of years.
BHE has a Gross Margin of 10.17%. This is in the lower half of the industry: BHE underperforms 78.40% of its industry peers.
In the last couple of years the Gross Margin of BHE has grown nicely.
| 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
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.
Compared to 1 year ago, BHE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.07 indicates that BHE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.07, BHE is in line with its industry, outperforming 51.20% of the companies in the same industry.
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.
The Debt to FCF ratio of BHE (1.96) is better than 78.40% of its industry peers.
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 43.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.6
WACC9.53%
2.3 Liquidity
BHE has a Current Ratio of 2.37. This indicates that BHE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.37, BHE is in line with its industry, outperforming 48.80% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that BHE should not have too much problems paying its short term obligations.
The Quick ratio of BHE (1.48) is worse than 60.00% of 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.
Measured over the past years, BHE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.75% on average per year.
The Revenue has decreased by -7.36% in the past year.
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)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
BHE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.62% yearly.
BHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 16.81, BHE is valued correctly.
BHE's Price/Earnings ratio is rather cheap when compared to the industry. BHE is cheaper than 82.40% of the companies in the same industry.
BHE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
BHE is valuated correctly with a Price/Forward Earnings ratio of 14.32.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHE indicates a rather cheap valuation: BHE is cheaper than 83.20% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, BHE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
93.60% of the companies in the same industry are more expensive than BHE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BHE is valued cheaply inside the industry as 92.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.79 | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BHE may justify a higher PE ratio.
PEG (NY)9.51
PEG (5Y)1.43
EPS Next 2Y7.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BHE has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
BHE's Dividend Yield is rather good when compared to the industry average which is at 2.07. BHE pays more dividend than 92.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, BHE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
45.58% of the earnings are spent on dividend by BHE. This is a bit on the high side, but may be sustainable.
BHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.58%
EPS Next 2Y7.62%
EPS Next 3YN/A
38.16
-0.11 (-0.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.74%
Inst Owner Change1.76%
Ins Owners2.17%
Ins Owner Change5.5%
Market Cap1.38B
Analysts77.5
Price Target45.9 (20.28%)
Short Float %3.65%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.67
Dividend Growth(5Y)2.33%
DP45.58%
Div Incr Years1
Div Non Decr Years6
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)0%
PT rev (3m)-9.09%
EPS NQ rev (1m)-2.69%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 14.32 | ||
| P/S | 0.53 | ||
| P/FCF | 9.79 | ||
| P/OCF | 8 | ||
| P/B | 1.25 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)2.27
EY5.95%
EPS(NY)2.66
Fwd EY6.98%
FCF(TTM)3.9
FCFY10.22%
OCF(TTM)4.77
OCFY12.51%
SpS72.36
BVpS30.6
TBVpS24.08
PEG (NY)9.51
PEG (5Y)1.43
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 | 3.07 |
F-Score7
WACC9.53%
ROIC/WACC0.6
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%