NYSE:BHE

Stock Analysis Report

Benchmark Electronics

Executive Summary

Benchmark Electronics, Inc., together with its subsidiaries, provides product design, engineering services, technology solutions, and advanced manufacturing services in the Americas, Asia, and Europe.


Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Benchmark Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BHE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.0%

BHE

3.0%

US Electronic

2.4%

US Market


1 Year Return

-25.5%

BHE

-20.8%

US Electronic

-10.0%

US Market

Return vs Industry: BHE matched the US Electronic industry which returned -25.6% over the past year.

Return vs Market: BHE underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

BHEIndustryMarket
7 Day17.0%3.0%2.4%
30 Day-18.5%-13.5%-11.0%
90 Day-38.1%-27.6%-19.4%
1 Year-23.7%-25.5%-20.0%-20.8%-8.1%-10.0%
3 Year-26.5%-30.3%4.6%1.7%17.3%9.6%
5 Year-9.3%-14.0%26.7%20.5%36.1%21.1%

Price Volatility Vs. Market

How volatile is Benchmark Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Benchmark Electronics undervalued compared to its fair value and its price relative to the market?

35.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BHE ($21.18) is trading above our estimate of fair value ($13.74)

Significantly Below Fair Value: BHE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BHE is poor value based on its PE Ratio (34.7x) compared to the Electronic industry average (14.6x).

PE vs Market: BHE is poor value based on its PE Ratio (34.7x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: BHE is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BHE is good value based on its PB Ratio (0.8x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

How is Benchmark Electronics forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHE's forecast earnings growth (40.6% per year) is above the savings rate (1.7%).

Earnings vs Market: BHE's earnings (40.6% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BHE's revenue (2.7% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: BHE's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHE's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Benchmark Electronics performed over the past 5 years?

-27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHE has a large one-off loss of $31.8M impacting its December 31 2019 financial results.

Growing Profit Margin: BHE's current net profit margins (1%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: BHE's earnings have declined by -27.9% per year over the past 5 years.

Accelerating Growth: BHE's earnings growth over the past year (2.7%) exceeds its 5-year average (-27.9% per year).

Earnings vs Industry: BHE earnings growth over the past year (2.7%) exceeded the Electronic industry 0.03%.


Return on Equity

High ROE: BHE's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Benchmark Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: BHE's short term assets ($1.2B) exceed its short term liabilities ($459.2M).

Long Term Liabilities: BHE's short term assets ($1.2B) exceed its long term liabilities ($285.8M).


Debt to Equity History and Analysis

Debt Level: BHE's debt to equity ratio (14.1%) is considered satisfactory.

Reducing Debt: BHE's debt to equity ratio has increased from 0% to 14.1% over the past 5 years.

Debt Coverage: BHE's debt is well covered by operating cash flow (65.2%).

Interest Coverage: BHE's interest payments on its debt are well covered by EBIT (21.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Benchmark Electronics's current dividend yield, its reliability and sustainability?

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BHE's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: BHE's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BHE has been paying a dividend for less than 10 years.

Growing Dividend: BHE's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (98.2%), BHE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Jeff Benck (54yo)

1.08s

Tenure

US$6,178,171

Compensation

Mr. Jeffrey W. Benck, also known as Jeff, has been the President, CEO and Director of Benchmark Electronics, Inc since March 18, 2019. He had been the Chief Executive Officer and President of Lantronix, In ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD6.18M) is above average for companies of similar size in the US market ($USD3.25M).

Compensation vs Earnings: Insufficient data to compare Jeff's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Benck
President1.08yrsUS$6.18m0.051% $394.3k
Roop Lakkaraju
Executive VP & CFO2.25yrsUS$1.79m0.030% $232.7k
Michael Buseman
Executive Vice President of Global Operations2.75yrsUS$1.13m0.022% $173.1k
Jan Janick
CTO & Vice President of Global Engineering4.75yrsUS$1.33m0.043% $337.8k
Stephen Beaver
VP, Corporate Secretary & General Counsel1.67yrsUS$913.10k0.010% $79.8k
Scott Hicar
VP of Business Process Improvement & Chief Information Officer2.58yrsno data0.017% $129.1k
Lisa Weeks
Vice President of Strategy & Investor Relations8.25yrsUS$958.74k0.14% $1.1m
Rhonda Turner
Chief Human Resources Officer0.75yrno datano data
Robert Crawford
Chief Revenue Officer0.75yrno datano data
Jon King
2.67yrsUS$1.47mno data

2.4yrs

Average Tenure

53yo

Average Age

Experienced Management: BHE's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Benck
President1.08yrsUS$6.18m0.051% $394.3k
Merilee Raines
Independent Director1.92yrsUS$229.52k0.015% $116.4k
David Scheible
Independent Chairman of the Board4.08yrsUS$308.02k0.12% $939.2k
Douglas Duncan
Independent Director13.92yrsUS$240.52k0.047% $363.7k
Kenneth Lamneck
Independent Director6.83yrsUS$248.02k0.084% $652.8k
Anne De Greef-Safft
Independent Director0.33yrUS$67.42kno data
Robert Gifford
Independent Director3.92yrsUS$243.02k0.036% $282.3k
Jeffrey McCreary
Independent Director3.92yrsUS$228.02k0.12% $973.5k
Bruce Carlson
Independent Director2.75yrsUS$228.02k0.025% $197.0k

3.9yrs

Average Tenure

63yo

Average Age

Experienced Board: BHE's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Benchmark Electronics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Benchmark Electronics, Inc.
  • Ticker: BHE
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$780.385m
  • Shares outstanding: 36.42m
  • Website: https://www.bench.com

Number of Employees


Location

  • Benchmark Electronics, Inc.
  • 56 South Rockford Drive
  • Tempe
  • Arizona
  • 85281
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHENYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 1990
BMUDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1990
BMUBRSE (Berne Stock Exchange)YesCommon SharesCHCHFJun 1990

Biography

Benchmark Electronics, Inc., together with its subsidiaries, provides product design, engineering services, technology solutions, and advanced manufacturing services in the Americas, Asia, and Europe. The company offers engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing, and automation equipment design and build services. It also provides electronics manufacturing and testing services, such as printed circuit board assembly and test solutions, assembly of subsystems, circuitry and functionality testing of printed assemblies, environmental and stress testing, and component reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, flexible test solutions, environmental stress tests of assemblies of boards or systems; and failure analysis. In addition, the company offers precision machining and electromechanical assembly services; and subsystem and system integration services, including assembly, configuration, and testing services for various industries. Further, it provides value-added support systems; supply chain management solutions; direct order fulfillment; and aftermarket non-warranty services, including repair, replacement, refurbishment, remanufacturing, exchange, systems upgrade, and spare parts manufacturing throughout a product’s life cycle. The company serves original equipment manufacturers in the aerospace and defense, medical technologies, complex industrials, test and instrumentation, telecommunications, and high-end computing industries. Benchmark Electronics, Inc. sells its products primarily through direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 23:32
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.