One-glance verdict
Within fair range
$56.85 our estimate vs market $71.12
Wall Street consensus: $86.00 (51.3% higher than our fair-value estimate)
25% above our estimate
Fundamentals snapshot
Benchmark Electronics, Inc.
BHE · NYQ · Technology · Electronic Components
Current price
$71.12
52-week range
$41.69 - $100.41
Market cap
$2.55B
Balance sheet
Healthy
5.24x Adequate
Net cash $23.02M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.0% last year.
- Reward Free cash flow was positive in 8/10 years.
- Reward Dividend yield is 1.0% with 9-year payout history.
- Risk Stock trades 64.2% above its 5-year average P/E.
What this company does
Benchmark Electronics, Inc.
Benchmark Electronics acts like a highly skilled workshop for other companies, handling the entire process of designing and building complex electronics for them. It makes money by serving customers in demanding industries like aerospace, medical, and defense, where product reliability is critical, which helps create stable, long-term contracts. This matters because it means Benchmark's business doesn't depend on selling a single hit product but on providing essential manufacturing services to a variety of important clients.
How the company got here
Founded in 1979 in Texas as a part of a medical implant manufacturer, Benchmark Electronics initially focused on complex, low-volume medical product assembly. In 1986, it was sold to an investment group and later went public in 1990, officially becoming Benchmark Electronics, Inc. Throughout the 1990s and beyond, the company grew by acquiring other companies, which expanded its technological capabilities and global presence across the Americas, Europe, and Asia. This series of strategic acquisitions transformed it from a contract manufacturer into a global provider of design, engineering, and manufacturing services for a wide range of industries.
What it actually does
Benchmark Electronics is a company that other companies hire to design, engineer, and manufacture their electronic products. Think of them as a behind-the-scenes partner that helps bring complex technological products to life, from the initial idea to large-scale production. They handle everything from designing the internal circuitry and creating prototypes to assembling the final product and managing the supply chain (the process of getting all the necessary parts and materials). You won't see the Benchmark brand on store shelves, as their customers are other businesses, specifically original equipment manufacturers (OEMs), who then sell the products under their own brand names.
Advanced Computing & Communications
This segment focuses on building the complex electronics that power our digital world. This includes high-performance computers, data center equipment, and the infrastructure for next-generation communication networks like 5G. For example, they have developed expertise in liquid-cooled systems for the powerful processors used in artificial intelligence (AI). Customers in this area are typically large technology companies that need reliable and high-performing equipment to run their services. This is a significant and growing part of Benchmark's business, especially with the increasing demand for AI and data processing.
Aerospace & Defense
In this area, Benchmark manufactures highly reliable and rugged electronic systems for airplanes, satellites, and military equipment. These products have to withstand harsh environments and meet very strict quality and safety standards. The customers are aerospace and defense contractors who require precise and dependable components for their complex systems. This segment is a key part of Benchmark's focus on specialized, high-value manufacturing.
Medical
This part of the business produces a wide range of medical devices and equipment for other companies. This can include everything from diagnostic and monitoring equipment to therapeutic devices. Given the critical nature of these products, this segment requires a high degree of precision, quality control, and compliance with government regulations. Medical device companies pay Benchmark to manufacture these products for them, relying on their expertise in this specialized field. This is a core and growing market for the company.
Industrials
This segment creates electronic components and systems for a variety of industrial applications. This could include automation systems for factories, control systems for energy equipment, and various types of electronic instrumentation. The customers are other manufacturing and industrial companies that need these electronic components to make their own products and systems work. This is a stable part of Benchmark's business that benefits from new client acquisitions.
Semiconductor Capital Equipment
Benchmark also manufactures the complex equipment that is used to make semiconductors, which are the tiny chips that power almost all modern electronics. This is a highly specialized field that requires extreme precision and a deep understanding of the semiconductor manufacturing process. The customers are the companies that produce the machinery used in chip fabrication plants. This is a key growth area for Benchmark, and they continue to invest in their capabilities to serve this market.
What management is betting on now
Benchmark's current strategy is to focus on more complex and highly regulated industries where their engineering expertise is a key advantage. They are particularly emphasizing growth in the semiconductor capital equipment, medical, industrial, and aerospace and defense sectors. The company is also investing in its engineering and design services to get involved with customers earlier in the product development process, which can lead to longer-term manufacturing relationships. Additionally, they are focused on strengthening their supply chain to be more resilient to global disruptions and are expanding their manufacturing presence in North America.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$29.22M
FY2024 Q4
$-6.11M
FY2025 Q1
$28.11M
FY2025 Q2
$-15.13M
FY2025 Q3
$25.11M
FY2025 Q4
$48.24M
FY2026 Q1
$31.01M
FY2026 Q2
$21.75M
Revenue
$755.98M
Net income
$19.88M
Diluted EPS
0.55
Operating cash flow
$34.67M
Free cash flow
$21.75M
Fetching…
Sources
Revenue
$677.28M
Net income
$13.02M
Diluted EPS
0.36
Operating cash flow
$47.03M
Free cash flow
$31.01M
Fetching…
Sources
Revenue
$704.33M
Net income
$5.97M
Diluted EPS
0.16
Operating cash flow
$58.68M
Free cash flow
$48.24M
Fetching…
Sources
Revenue
$680.68M
Net income
$14.26M
Diluted EPS
0.39
Operating cash flow
$36.61M
Free cash flow
$25.11M
Fetching…
Sources
Revenue
$642.34M
Net income
$972.00K
Diluted EPS
0.03
Operating cash flow
$-2.82M
Free cash flow
$-15.13M
Fetching…
Sources
Revenue
$631.76M
Net income
$3.64M
Diluted EPS
0.10
Operating cash flow
$31.50M
Free cash flow
$28.11M
Fetching…
Sources
Revenue
$656.89M
Net income
$18.42M
Diluted EPS
0.49
Operating cash flow
$-2.54M
Free cash flow
$-6.11M
Fetching…
Sources
Revenue
$657.75M
Net income
$15.37M
Diluted EPS
0.42
Operating cash flow
$39.03M
Free cash flow
$29.22M
Fetching…
Sources
Is it cheap or expensive?
Fair value $56.85 vs current price $71.12
Wall Street consensus is the average analyst price target: $86.00 (51.3% higher than our fair-value estimate).
Our most-likely fair value is $56.85 a share — about 20.1% away from today's price of $71.12, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $23.0M - more cash than debt. Interest coverage 5.2x.
Net debt
$-23.02M
Interest coverage
5.24x
Benchmark Electronics, Inc.'s profit covers its interest bill about 5.2 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
BHE
BASELINE
Benchmark Electronics, Inc.
Total debt $291.82M Interest coverage 5.24x This is the baseline the peer rows are being compared against.
Total debt $306.96M Interest coverage 17.84x +241% vs BHE Carries about 3.4x more debt cushion than BHE.
Total debt $2.43B Interest coverage 19.60x +274% vs BHE Carries about 3.7x more debt cushion than BHE.
Total debt $133.07M Interest coverage 6.62x +26% vs BHE Carries about 1.3x more debt cushion than BHE.
Total debt $4.02B Interest coverage 9.77x +86% vs BHE Carries about 1.9x more debt cushion than BHE.
What you should know
The case for and against BHE
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.0% last year.
-
Free cash flow was positive in 8/10 years.
-
Dividend yield is 1.0% with 9-year payout history.
Risks
-
Stock trades 64.2% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
48.71x
Forward P/E
21.51x
P/B
2.29x
P/S
0.91x
EV/EBITDA
17.12x
PEG ratio
0.96x
Profitability
How much profit each dollar creates
Gross margin
10.3%
Operating margin
4.1%
Net margin
1.9%
ROE
4.8%
ROA
3.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.26x
Current ratio
1.99x
Quick ratio
1.21x
Total debt
$291.82M
Total cash
$314.84M
Growth
How the business has been compounding
Revenue TTM
$2.82B
Revenue 5Y CAGR
4.2%
EPS TTM
1.46
EPS 5Y CAGR
-29.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$176.99M
Free CF TTM
$88.35M
FCF margin
3.1%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
46.6%
Last ex-div date
2026-09-30