BENCHMARK ELECTRONICS INC (BHE)
US08160H1014 - Common Stock
Taking everything into account, BHE scores 5 out of 10 in our fundamental rating. BHE was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. BHE has only an average score on both its financial health and profitability. BHE is valued correctly, but it does not seem to be growing. Finally BHE also has an excellent dividend rating. This makes BHE very considerable for dividend investing!
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
Looking at the Return On Assets, with a value of 2.83%, BHE is in line with its industry, outperforming 57.14% of the companies in the same industry.
BHE has a Return On Equity (5.96%) which is in line with its industry peers.
BHE's Return On Invested Capital of 6.05% is fine compared to the rest of the industry. BHE outperforms 64.29% of its industry peers.
BHE had an Average Return On Invested Capital over the past 3 years of 5.23%. This is below the industry average of 9.44%.
The 3 year average ROIC (5.23%) for BHE is below the current ROIC(6.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 5.96% | ||
| ROIC | 6.05% |
ROA(3y)2.59%
ROA(5y)1.98%
ROE(3y)5.43%
ROE(5y)4%
ROIC(3y)5.23%
ROIC(5y)4.22%
1.3 Margins
The Profit Margin of BHE (2.27%) is comparable to the rest of the industry.
BHE's Profit Margin has improved in the last couple of years.
BHE has a Operating Margin of 4.15%. This is comparable to the rest of the industry: BHE outperforms 57.94% of its industry peers.
In the last couple of years the Operating Margin of BHE has grown nicely.
The Gross Margin of BHE (9.55%) is worse than 80.16% of its industry peers.
In the last couple of years the Gross Margin of BHE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.15% | ||
| PM (TTM) | 2.27% | ||
| GM | 9.55% |
OM growth 3Y23.71%
OM growth 5Y9.47%
PM growth 3Y48.86%
PM growth 5Y20.59%
GM growth 3Y3.86%
GM growth 5Y2.12%
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.
The number of shares outstanding for BHE has been increased compared to 1 year ago.
BHE has less shares outstanding than it did 5 years ago.
BHE has a better debt/assets ratio than last year.
2.2 Solvency
BHE has an Altman-Z score of 2.79. This is not the best score and indicates that BHE is in the grey zone with still only limited risk for bankruptcy at the moment.
BHE's Altman-Z score of 2.79 is in line compared to the rest of the industry. BHE outperforms 53.97% of its industry peers.
The Debt to FCF ratio of BHE is 3.43, which is a good value as it means it would take BHE, 3.43 years of fcf income to pay off all of its debts.
BHE has a Debt to FCF ratio of 3.43. This is in the better half of the industry: BHE outperforms 65.87% of its industry peers.
BHE has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.30, BHE perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.43 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.63
WACC9.64%
2.3 Liquidity
A Current Ratio of 2.29 indicates that BHE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, BHE is in line with its industry, outperforming 48.41% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that BHE should not have too much problems paying its short term obligations.
BHE has a worse Quick ratio (1.33) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
BHE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.84%.
The Earnings Per Share has been growing slightly by 7.17% on average over the past years.
Looking at the last year, BHE shows a decrease in Revenue. The Revenue has decreased by -1.64% in the last year.
Measured over the past years, BHE shows a small growth in Revenue. The Revenue has been growing by 2.04% on average per year.
EPS 1Y (TTM)-2.84%
EPS 3Y29.22%
EPS 5Y7.17%
EPS growth Q2Q-3.33%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y11.41%
Revenue growth 5Y2.04%
Revenue growth Q2Q-7.89%
3.2 Future
The Earnings Per Share is expected to grow by 9.64% on average over the next years. This is quite good.
The Revenue is expected to decrease by -0.38% on average over the next years.
EPS Next Y-7.06%
EPS Next 2Y9.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.36%
Revenue Next 2Y-0.38%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.14, which indicates a correct valuation of BHE.
BHE's Price/Earnings ratio is rather cheap when compared to the industry. BHE is cheaper than 80.16% 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 25.20.
A Price/Forward Earnings ratio of 16.29 indicates a correct valuation of BHE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHE indicates a somewhat cheap valuation: BHE is cheaper than 74.60% of the companies listed in the same industry.
BHE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
BHE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHE is cheaper than 85.71% of the companies in the same industry.
88.10% of the companies in the same industry are more expensive than BHE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.11
EPS Next 2Y9.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.16%, BHE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.77, BHE pays a better dividend. On top of this BHE pays more dividend than 95.24% of the companies listed in the same industry.
BHE's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of BHE is nicely growing with an annual growth rate of 7.36%!
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)7.36%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
36.45% of the earnings are spent on dividend by BHE. This is a low number and sustainable payout ratio.
BHE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.45%
EPS Next 2Y9.64%
EPS Next 3YN/A
BENCHMARK ELECTRONICS INC
NYSE:BHE (4/26/2024, 1:32:52 PM)
31.04
+0.74 (+2.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 16.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 5.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.15% | ||
| PM (TTM) | 2.27% | ||
| GM | 9.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.84%
EPS 3Y29.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y11.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y