BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
NYSE:BHE - US08160H1014 - Common Stock
40.59 USD
-0.87 (-2.1%)
40.59 USD
0 (0%)
Overall BHE gets a fundamental rating of 5 out of 10. We evaluated BHE against 124 industry peers in the Electronic Equipment, Instruments & Components industry. BHE has an average financial health and profitability rating. BHE has a valuation in line with the averages, but it does not seem to be growing.
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.
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's Return On Assets of 1.89% is in line compared to the rest of the industry. BHE outperforms 57.26% of its industry peers.
BHE has a Return On Equity of 3.47%. This is comparable to the rest of the industry: BHE outperforms 58.87% of its industry peers.
BHE's Return On Invested Capital of 5.61% is fine compared to the rest of the industry. BHE outperforms 62.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BHE is below the industry average of 9.70%.
| 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
With a Profit Margin value of 1.48%, BHE perfoms like the industry average, outperforming 55.65% of the companies in the same industry.
In the last couple of years the Profit Margin of BHE has grown nicely.
Looking at the Operating Margin, with a value of 4.03%, BHE is in line with its industry, outperforming 59.68% of the companies in the same industry.
In the last couple of years the Operating Margin of BHE has grown nicely.
BHE's Gross Margin of 10.14% is on the low side compared to the rest of the industry. BHE is outperformed by 81.45% 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
An Altman-Z score of 3.28 indicates that BHE is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.28, BHE perfoms like the industry average, outperforming 50.81% 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.
With a decent Debt to FCF ratio value of 2.65, BHE is doing good in the industry, outperforming 73.39% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that BHE is not too dependend on debt financing.
BHE has a Debt to Equity ratio (0.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 3.28 |
ROIC/WACC0.57
WACC9.81%
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 (2.36) which is in line with its industry peers.
BHE has a Quick Ratio of 1.46. This is a normal value and indicates that BHE is financially healthy and should not expect problems in meeting its short term obligations.
BHE's Quick ratio of 1.46 is in line compared to the rest of the industry. BHE outperforms 41.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
BHE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.88%.
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%.
The Revenue has been growing slightly by 3.21% on average over the past years.
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 5.88% on average per year.
The Revenue is expected to grow by 2.81% on average over the next years.
EPS Next Y1.11%
EPS Next 2Y5.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.89%
Revenue Next 2Y2.81%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BHE is valuated rather expensively with a Price/Earnings ratio of 18.04.
Based on the Price/Earnings ratio, BHE is valued cheaply inside the industry as 86.29% of the companies are valued more expensively.
BHE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 15.74 indicates a correct valuation of BHE.
Based on the Price/Forward Earnings ratio, BHE is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.72. BHE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 15.74 |
4.2 Price Multiples
89.52% 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 cheaper than 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 9.47 |
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)16.26
PEG (5Y)1.54
EPS Next 2Y5.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BHE has a Yearly Dividend Yield of 1.77%.
BHE's Dividend Yield is rather good when compared to the industry average which is at 1.59. BHE pays more dividend than 94.35% of the companies in the same industry.
BHE's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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.
BHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.34%
EPS Next 2Y5.88%
EPS Next 3YN/A
40.59
-0.87 (-2.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners105.44%
Inst Owner Change-1.37%
Ins Owners2.09%
Ins Owner Change0.13%
Market Cap1.46B
Analysts77.5
Price Target45.65 (12.47%)
Short Float %3.76%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)-0.56%
PT rev (3m)-0.56%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-9.69%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-6.19%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 15.74 | ||
| P/S | 0.56 | ||
| P/FCF | 18.61 | ||
| P/OCF | 12.83 | ||
| P/B | 1.32 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)2.25
EY5.54%
EPS(NY)2.58
Fwd EY6.35%
FCF(TTM)2.18
FCFY5.37%
OCF(TTM)3.16
OCFY7.8%
SpS72.09
BVpS30.82
TBVpS24.33
PEG (NY)16.26
PEG (5Y)1.54
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 | 3.28 |
F-Score7
WACC9.81%
ROIC/WACC0.57
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 2Y5.88%
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-0.89%
Revenue Next 2Y2.81%
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%