BENCHMARK ELECTRONICS INC (BHE) Stock Fundamental Analysis
NYSE:BHE - New York Stock Exchange, Inc. - US08160H1014 - Common Stock - Currency: USD
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. 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.
In the past year BHE had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 1.89%, BHE is in line with its industry, outperforming 57.26% of the companies in the same industry.
With a Return On Equity value of 3.47%, BHE perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
BHE's Return On Invested Capital of 5.62% is fine compared to the rest of the industry. BHE outperforms 63.71% of its industry peers.
BHE had an Average Return On Invested Capital over the past 3 years of 5.67%. This is below the industry average of 9.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 3.47% | ||
| ROIC | 5.62% |
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
Looking at the Profit Margin, with a value of 1.48%, BHE is in line with its industry, outperforming 54.84% 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 4.04%, BHE is in line with its industry, outperforming 59.68% of the companies in the same industry.
BHE's Operating Margin has improved in the last couple of years.
BHE's Gross Margin of 10.14% is on the low side compared to the rest of the industry. BHE is outperformed by 79.84% of its industry peers.
BHE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.04% | ||
| 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.
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
The Debt to FCF ratio of BHE is 2.65, which is a good value as it means it would take BHE, 2.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BHE (2.65) is better than 72.58% of its industry peers.
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 | N/A |
ROIC/WACC0.58
WACC9.74%
2.3 Liquidity
A Current Ratio of 2.36 indicates that BHE has no problem at all paying its short term obligations.
The Current ratio of BHE (2.36) is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 1.46, BHE is in line with its industry, outperforming 40.32% of the companies in the same industry.
| 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.
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.
Looking at the last year, BHE shows a decrease in Revenue. The Revenue has decreased by -5.95% in the last 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)-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
The Earnings Per Share is expected to grow by 7.62% on average over the next years.
Based on estimates for the next years, BHE will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.60, BHE is valued on the expensive side.
Based on the Price/Earnings ratio, BHE is valued cheaper than 83.87% of the companies in the same industry.
BHE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.87, which indicates a correct valuation of BHE.
87.10% of the companies in the same industry are more expensive than BHE, based on the Price/Forward Earnings ratio.
BHE is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 14.87 |
4.2 Price Multiples
BHE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHE is cheaper than 88.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHE is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.25 | ||
| EV/EBITDA | 9.06 |
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)9.95
PEG (5Y)1.5
EPS Next 2Y7.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BHE has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.79, BHE pays a better dividend. On top of this BHE pays more dividend than 91.94% of the companies listed in the same industry.
BHE's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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 31.44% of its income as dividend. This is a sustainable payout ratio.
BHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.44%
EPS Next 2Y7.62%
EPS Next 3YN/A
39.6
+1.89 (+5.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.43%
Inst Owner Change-0.24%
Ins Owners2.09%
Ins Owner Change5.74%
Market Cap1.43B
Analysts77.5
Price Target45.9 (15.91%)
Short Float %3.86%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend0.67
Dividend Growth(5Y)2.33%
DP31.44%
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)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 14.87 | ||
| P/S | 0.55 | ||
| P/FCF | 18.25 | ||
| P/OCF | 12.58 | ||
| P/B | 1.29 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 9.06 |
EPS(TTM)2.25
EY5.68%
EPS(NY)2.66
Fwd EY6.73%
FCF(TTM)2.17
FCFY5.48%
OCF(TTM)3.15
OCFY7.95%
SpS71.71
BVpS30.66
TBVpS22.37
PEG (NY)9.95
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 3.47% | ||
| ROCE | 7.27% | ||
| ROIC | 5.62% | ||
| ROICexc | 6.89% | ||
| ROICexgc | 9.24% | ||
| OM | 4.04% | ||
| 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 | 1.34 | ||
| Cap/Depr | 75.27% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.03% | ||
| Profit Quality | 203.9% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | N/A |
F-Score7
WACC9.74%
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)-0.88%
EPS 3Y19.43%
EPS 5Y11.75%
EPS Q2Q%-3.51%
EPS Next Y1.77%
EPS Next 2Y7.62%
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-0.56%
Revenue Next 2Y3.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.5%
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%