📊 BHE Key Takeaways
Investment Thesis
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.
BHE 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
BHE 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
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
BHE Financial Metrics
💡 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 Profitability Ratios
BHE vs Default Sector
How BENCHMARK ELECTRONICS INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BHE Balance Sheet & Liquidity
BHE 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 Growth Metrics (YoY)
BHE Quarterly 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.
BHE Capital Allocation
BHE SEC Filings
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 an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BHE's 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.
What are the risks of investing in BHE?
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.
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?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.