BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHE - US08160H1014 - Common Stock
44.93 USD
+0.02 (+0.04%)
45.37 USD
+0.44 (+0.98%)
Taking everything into account, BHE scores 4 out of 10 in our fundamental rating. 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
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.
In multiple years BHE reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of BHE (1.80%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 3.36%, BHE is in line with its industry, outperforming 53.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.37%, BHE is in line with its industry, outperforming 59.20% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BHE is below the industry average of 9.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 3.36% | ||
| ROIC | 5.37% |
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 has a Profit Margin of 1.43%. This is comparable to the rest of the industry: BHE outperforms 50.40% of its industry peers.
BHE's Profit Margin has improved in the last couple of years.
BHE has a Operating Margin (3.85%) which is comparable to the rest of the industry.
BHE's Operating Margin has improved in the last couple of years.
BHE has a Gross Margin of 10.10%. This is amonst the worse of the industry: BHE underperforms 81.60% of its industry peers.
In the last couple of years the Gross Margin of BHE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.85% | ||
| PM (TTM) | 1.43% | ||
| GM | 10.1% |
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.
BHE has a better debt/assets ratio than last year.
2.2 Solvency
BHE has an Altman-Z score of 3.29. This indicates that BHE is financially healthy and has little risk of bankruptcy at the moment.
BHE has a Altman-Z score (3.29) which is in line with its industry peers.
BHE has a debt to FCF ratio of 2.92. This is a good value and a sign of high solvency as BHE would need 2.92 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.92, BHE is doing good in the industry, outperforming 71.20% of the companies in the same industry.
BHE has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BHE (0.19) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 3.29 |
ROIC/WACC0.56
WACC9.54%
2.3 Liquidity
A Current Ratio of 2.32 indicates that BHE has no problem at all paying its short term obligations.
With a Current ratio value of 2.32, BHE perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
BHE has a Quick Ratio of 1.50. This is a normal value and indicates that BHE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.50, BHE perfoms like the industry average, outperforming 40.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.32% 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 -2.93% in the past year.
BHE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.21% yearly.
EPS 1Y (TTM)1.32%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%8.77%
Revenue 1Y (TTM)-2.93%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%3.49%
3.2 Future
The Earnings Per Share is expected to grow by 7.77% on average over the next years.
BHE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.18% yearly.
EPS Next Y1.11%
EPS Next 2Y5.67%
EPS Next 3Y7.77%
EPS Next 5YN/A
Revenue Next Year-1.04%
Revenue Next 2Y2.34%
Revenue Next 3Y3.18%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.53 indicates a rather expensive valuation of BHE.
79.20% of the companies in the same industry are more expensive than BHE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. BHE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.49, which indicates a rather expensive current valuation of BHE.
BHE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BHE is cheaper than 77.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, BHE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 17.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHE is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BHE is valued a bit cheaper than the industry average as 77.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.6 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)17.6
PEG (5Y)1.66
EPS Next 2Y5.67%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.51%, BHE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.33, BHE pays a better dividend. On top of this BHE pays more dividend than 92.80% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, BHE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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
65.62% of the earnings are spent on dividend by BHE. This is not a sustainable payout ratio.
BHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.62%
EPS Next 2Y5.67%
EPS Next 3Y7.77%
44.93
+0.02 (+0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners102.62%
Inst Owner Change-1.12%
Ins Owners1.28%
Ins Owner Change-0.99%
Market Cap1.60B
Revenue(TTM)2.61B
Net Income(TTM)37.30M
Analysts77.5
Price Target50.24 (11.82%)
Short Float %4.03%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
Yearly Dividend0.67
Dividend Growth(5Y)2.33%
DP65.62%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.27%
Min EPS beat(2)0.38%
Max EPS beat(2)6.16%
EPS beat(4)4
Avg EPS beat(4)4.14%
Min EPS beat(4)0.38%
Max EPS beat(4)7.56%
EPS beat(8)8
Avg EPS beat(8)6.56%
EPS beat(12)11
Avg EPS beat(12)5.21%
EPS beat(16)15
Avg EPS beat(16)8.42%
Revenue beat(2)1
Avg Revenue beat(2)0.72%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)1.92%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)1.92%
Revenue beat(8)4
Avg Revenue beat(8)0.24%
Revenue beat(12)7
Avg Revenue beat(12)0.7%
Revenue beat(16)11
Avg Revenue beat(16)2.61%
PT rev (1m)10.06%
PT rev (3m)10.06%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 17.49 | ||
| P/S | 0.61 | ||
| P/FCF | 21.6 | ||
| P/OCF | 14.42 | ||
| P/B | 1.45 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 10.38 |
EPS(TTM)2.3
EY5.12%
EPS(NY)2.57
Fwd EY5.72%
FCF(TTM)2.08
FCFY4.63%
OCF(TTM)3.12
OCFY6.94%
SpS73.2
BVpS31.09
TBVpS24.56
PEG (NY)17.6
PEG (5Y)1.66
Graham Number40.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 3.36% | ||
| ROCE | 6.95% | ||
| ROIC | 5.37% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 8.37% | ||
| OM | 3.85% | ||
| PM (TTM) | 1.43% | ||
| GM | 10.1% | ||
| FCFM | 2.84% |
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-Score6
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 78.37% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 4.64 | ||
| Cash Conversion | 75.22% | ||
| Profit Quality | 198.97% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.29 |
F-Score6
WACC9.54%
ROIC/WACC0.56
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 3Y7.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.93%
Revenue growth 3Y5.6%
Revenue growth 5Y3.21%
Sales Q2Q%3.49%
Revenue Next Year-1.04%
Revenue Next 2Y2.34%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
EBIT growth 1Y-16.58%
EBIT growth 3Y20.13%
EBIT growth 5Y22.68%
EBIT Next Year49.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y177.77%
FCF growth 3YN/A
FCF growth 5Y21.87%
OCF growth 1Y815.78%
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 4 / 10 to BHE.
What is the valuation status of BENCHMARK ELECTRONICS INC (BHE) stock?
ChartMill assigns a valuation rating of 4 / 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 4 / 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 65.62%.