BHE

Benchmark Electronics

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Electronic Components

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

Benchmark Electronics operates as a contract manufacturer of electronic components and complex assemblies, generating revenue by providing design, engineering, and production services to OEM customers. Its cash flow is driven by long-term customer programs where it integrates supply chain management with manufacturing execution. The moat is not brand-based but operational — scale efficiencies, regulatory certifications, and embedded customer relationships create switching costs. However, because operating margin sits at 2.30%, the moat is narrow and dependent on flawless execution rather than pricing power.

VALUATION

P/E

92.6

Market Cap ($M USD)

$2,247

Forward P/E

21.9

PEG

2.3

PRICE TO SALES

0.9

PRICE TO BOOK

2

EV / EBITDA

17.3

5-Year Average P/E

DIVIDEND

Yield

1.10%

Annual Payout

$0.68

Payout Ratio

98.60%

Consecutive Years of Dividend Growth

2

5-Year Dividend Growth Rate

1.20%

Financial Health & Profitability

Earnings Per Share

$0.69

Next Year EPS Growth Estimate

$2.88

Next Year Revenue Growth Estimate

6.40%

Return on Equity (ROE)

2.30%

Operating Margin

4.00%

Debt-to-Equity

0.3

Piotroski F-Score

6

Altman Z-Score

3.7

Return on Invested Capital (ROIC)

2.30%%

Current Ratio

2.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 92.6x earnings with a Forward P/E of 21.9, the market is pricing Benchmark Electronics for a dramatic normalization in earnings despite modest fundamentals. The compression from 92.6 to 21.9 implies expectations of near-term earnings stabilization, yet a PEG of 2.3 suggests that growth does not justify even the forward multiple. Financially, the company is stable rather than distressed, evidenced by an Altman Z-Score of 3.7 and a Current Ratio of 2.3, but profitability is thin with a 2.30% operating margin and 6.40% ROE. This is not a broken balance sheet story — it is a low-margin execution story where valuation assumes improvement that has yet to show up in returns.

AI Exposure / Tech Reliance

As an Electronic Components provider within the Technology sector, Benchmark Electronics sits in the hardware infrastructure layer that supports AI, industrial automation, and advanced computing systems. Electronic component manufacturing benefits from increasing system complexity, but margins tend to be structurally tight. The company’s ability to capture AI-driven demand will depend less on innovation and more on efficient execution and scale.

The Bull Case

A disciplined value or GARP investor could argue that the stock offers stabilization with optionality. The Price/Sales ratio of 0.9 and Price/Book of 2 suggest the market is not assigning aggressive asset premiums, while a Piotroski F-Score of 6 indicates reasonable operational stability. Liquidity is solid with a 2.3 Current Ratio, and bankruptcy risk appears limited with a 3.7 Altman Z-Score. If management can lift ROIC above the current 2.30% and expand the 2.30% operating margin even modestly, the 21.9 Forward P/E could compress quickly, making this a recovery multiple expansion story rather than a pure growth play.

The Bear Case

The structural concerns are significant. A Debt/Equity ratio of 4.00% signals leverage exposure, and when paired with a weak 2.30% operating margin and 6.40% ROE, it shows capital is not being employed efficiently. A PEG of 2.3 indicates growth is expensive relative to expectations, while the 92.6 trailing P/E underscores how fragile current earnings quality may be. ROIC at 2.30% barely clears minimal return thresholds, and with only a 0.3 yield and a 1.20% short float, the market is neither aggressively bearish nor meaningfully supportive — it’s indifferent, which is dangerous for a company needing margin expansion to justify its valuation.

Market Sentiment & Smart Money

Short Interest %

6.20%

Analyst Consensus

1.75

Average Analyst Price Target

$52.33

Institutional Ownership %

105.20%

1-Year Beta

1.59

Insider Buying % (6 Mo)

2.10%%

Distance to 52-Week High

99.50%%

Distance to 52-Week Low

196.20%%