📊 BHE Key Takeaways
Is Benchmark Electronics Inc. (BHE) a Good Investment?
Benchmark Electronics demonstrates solid financial health with strong liquidity (2.28x current ratio) and manageable leverage (0.19x debt/equity), supported by positive free cash flow of $88.4M. However, profitability is severely compressed with net margin of only 0.9% and declining earnings (-59.3% YoY), indicating operational challenges in a cyclical PCB industry despite stable revenue decline of just -3.3% YoY.
Benchmark Electronics shows solid balance sheet quality, strong liquidity, low leverage, and positive free cash flow generation, which provides resilience in a softer operating environment. However, the business is currently constrained by declining revenue, very thin margins, and a sharp drop in net income and EPS, indicating weak earnings quality and limited profitability. Fundamentally, this looks like a stable but low-return business unless margins and earnings recover materially.
Why Buy Benchmark Electronics Inc. Stock? BHE Key Strengths
- Strong liquidity position with $322.1M cash and 2.28x current ratio provides financial flexibility
- Positive free cash flow of $88.4M demonstrates ability to fund operations and potential shareholder returns
- Conservative leverage at 0.19x debt/equity with 3.8x interest coverage ratio indicates low financial distress risk
- Stable revenue decline of only -3.3% YoY suggests relatively resilient customer relationships in cyclical sector
- Strong liquidity with a 2.28x current ratio, 1.52x quick ratio, and $322.06M in cash
- Conservative leverage profile with debt-to-equity of 0.19x and manageable long-term debt
- Positive operating cash flow and free cash flow support financial flexibility
BHE Stock Risks: Benchmark Electronics Inc. Investment Risks
- Severe profitability deterioration with net income down 59.3% YoY and net margin at only 0.9% reflects significant operational headwinds
- Extremely low operating margin of 2.9% and ROE of 2.3% suggest poor capital efficiency and return generation
- Gross margin compression at 10.2% indicates pricing pressure or unfavorable cost structure in competitive PCB market
- Cyclical industry exposure with electronics demand sensitivity creates earnings volatility and growth uncertainty
- Net income fell 59.3% YoY, showing significant earnings pressure
- Margins are thin, with 2.9% operating margin and 0.9% net margin
- Low ROE and ROA suggest weak capital efficiency and limited underlying profitability
Key Metrics to Watch
- Gross margin trend - watch for stabilization or recovery above 11% to indicate operational improvement
- Net income and EPS trajectory - critical to determine if 59% decline is bottom or continuing deterioration
- Operating cash flow sustainability - monitor if $124M level can be maintained to support FCF generation
- Debt/Equity ratio - track any leverage increase that would reduce financial flexibility during downturns
- Operating margin trend
- Revenue growth and free cash flow conversion
Benchmark Electronics Inc. (BHE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.28x current ratio provides a solid financial cushion.
BHE Profit Margin, ROE & Profitability Analysis
BHE vs Market Sector: How Benchmark Electronics Inc. Compares
How Benchmark Electronics Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Benchmark Electronics Inc. Stock Overvalued? BHE Valuation Analysis 2026
Based on fundamental analysis, Benchmark Electronics Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Benchmark Electronics Inc. Balance Sheet: BHE Debt, Cash & Liquidity
BHE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Benchmark Electronics Inc.'s revenue has grown significantly by 26% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.92 reflects profitable operations.
BHE Revenue Growth, EPS Growth & YoY Performance
BHE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $680.0M | $14.3M | $0.39 |
| Q2 2025 | $665.7M | $972.0K | $0.03 |
| Q1 2025 | $654.6M | $3.6M | $0.10 |
| Q3 2024 | $680.0M | $15.4M | $0.42 |
| Q1 2024 | $686.7M | $12.4M | $0.35 |
| Q3 2023 | $663.2M | $11.0M | $0.31 |
| Q2 2023 | $750.6M | $14.0M | $0.39 |
| Q3 2022 | $593.5M | $8.1M | $0.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Benchmark Electronics Inc. Dividends, Buybacks & Capital Allocation
BHE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Benchmark Electronics Inc. (CIK: 0000863436)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BHE
What is the AI rating for BHE?
Benchmark Electronics Inc. (BHE) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BHE's key strengths?
Claude: Strong liquidity position with $322.1M cash and 2.28x current ratio provides financial flexibility. Positive free cash flow of $88.4M demonstrates ability to fund operations and potential shareholder returns. ChatGPT: Strong liquidity with a 2.28x current ratio, 1.52x quick ratio, and $322.06M in cash. Conservative leverage profile with debt-to-equity of 0.19x and manageable long-term debt.
What are the risks of investing in BHE?
Claude: Severe profitability deterioration with net income down 59.3% YoY and net margin at only 0.9% reflects significant operational headwinds. Extremely low operating margin of 2.9% and ROE of 2.3% suggest poor capital efficiency and return generation. ChatGPT: Net income fell 59.3% YoY, showing significant earnings pressure. Margins are thin, with 2.9% operating margin and 0.9% net margin.
What is BHE's revenue and growth?
Benchmark Electronics Inc. reported revenue of $2.7B.
Does BHE pay dividends?
Benchmark Electronics Inc. pays dividends, with $24.4M distributed to shareholders in the trailing twelve months.
Where can I find BHE SEC filings?
Official SEC filings for Benchmark Electronics Inc. (CIK: 0000863436) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BHE's EPS?
Benchmark Electronics Inc. has a diluted EPS of $0.68.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BHE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Benchmark Electronics Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BHE stock overvalued or undervalued?
Valuation metrics for BHE: ROE of 2.3% (sector avg: 15%), net margin of 0.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy BHE stock in 2026?
Our dual AI analysis gives Benchmark Electronics Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BHE's free cash flow?
Benchmark Electronics Inc.'s operating cash flow is $124.0M, with capital expenditures of $35.6M. FCF margin is 3.3%.
How does BHE compare to other Market stocks?
Vs Default sector averages: Net margin 0.9% (avg: 12%), ROE 2.3% (avg: 15%), current ratio 2.28 (avg: 1.8).