BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
USA - NYSE:BHE - US08160H1014 - Common Stock
35.97 USD
-1.58 (-4.21%)
35.97 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BHE. BHE was compared to 124 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 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.
BHE had a positive operating cash flow in the past year.
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
BHE has a Return On Assets (1.89%) which is comparable to the rest of the industry.
BHE has a Return On Equity of 3.47%. This is comparable to the rest of the industry: BHE outperforms 56.45% of its industry peers.
BHE's Return On Invested Capital of 5.61% is fine compared to the rest of the industry. BHE outperforms 62.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHE is below the industry average of 9.44%.
| 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
The Profit Margin of BHE (1.48%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BHE has grown nicely.
BHE's Operating Margin of 4.03% is in line compared 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 has a Gross Margin of 10.14%. This is amonst the worse of the industry: BHE underperforms 81.45% of its industry peers.
In the last couple of years the Gross Margin of BHE has grown nicely.
| 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
BHE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BHE has more shares outstanding than it did 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 3.19 indicates that BHE is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.19, BHE perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
BHE has a debt to FCF ratio of 2.65. This is a good value and a sign of high solvency as BHE would need 2.65 years to pay back of all of its debts.
BHE has a better Debt to FCF ratio (2.65) than 73.39% of its industry peers.
BHE has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
BHE has a Debt to Equity ratio (0.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.59
WACC9.53%
2.3 Liquidity
A Current Ratio of 2.36 indicates that BHE has no problem at all paying its short term obligations.
With a Current ratio value of 2.36, BHE perfoms like the industry average, outperforming 52.42% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that BHE should not have too much problems paying its short term obligations.
BHE has a Quick ratio (1.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for BHE have decreased by -0.88% in the last 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 -5.95%.
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)-0.88%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%-3.51%
Revenue 1Y (TTM)-5.95%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%-3.54%
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.
BHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.34% yearly.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.99, BHE is valued correctly.
Based on the Price/Earnings ratio, BHE is valued cheaper than 88.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. BHE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.01, BHE is valued correctly.
BHE's Price/Forward Earnings ratio is rather cheap when compared to the industry. BHE is cheaper than 87.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BHE to the average of the S&P500 Index (22.57), we can say BHE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
BHE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHE is cheaper than 91.13% of the companies in the same industry.
BHE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHE is cheaper than 90.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.49 | ||
| EV/EBITDA | 8.54 |
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)14.41
PEG (5Y)1.36
EPS Next 2Y5.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, BHE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.04, BHE pays a better dividend. On top of this BHE pays more dividend than 94.35% of the companies listed in the same industry.
BHE's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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.
BHE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
BHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.34%
EPS Next 2Y5.67%
EPS Next 3YN/A
35.97
-1.58 (-4.21%)
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%
Ins Owners1.28%
Ins Owner Change0.63%
Market Cap1.29B
Analysts77.5
Price Target45.65 (26.91%)
Short Float %3.42%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)-0.15%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 14.01 | ||
| P/S | 0.5 | ||
| P/FCF | 16.49 | ||
| P/OCF | 11.37 | ||
| P/B | 1.17 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 8.54 |
EPS(TTM)2.25
EY6.26%
EPS(NY)2.57
Fwd EY7.14%
FCF(TTM)2.18
FCFY6.06%
OCF(TTM)3.16
OCFY8.8%
SpS72.09
BVpS30.82
TBVpS24.33
PEG (NY)14.41
PEG (5Y)1.36
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%
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 Turnover1.27
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 | 3.19 |
F-Score7
WACC9.53%
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)-0.88%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%-3.51%
EPS Next Y1.11%
EPS Next 2Y5.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.95%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%-3.54%
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%