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Benchmark Electronics, Inc.
$2.8B
Market Cap
62.9
P/E
0.80
PEG
3.4%
ROCE
2.3%
ROE
0.30
D/E
3.6%
OPM
-21.2%
% from 52W High
87
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for BHE including FX impact
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📈 Price History
Ratio Health
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About

Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. It provides design and engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom test and automation equipment design services. The company also offers 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; failure analysis; and systems assembly and test development solutions include subsystem and system-level integration, configuration, and testing for various industries, as well as in-circuit test, functional test, defect analysis, environmental stress screening, reliability testing, and custom test solutions. In addition, it provides precision metal machining, complex vertically integrated assemblies, e-beam welding, full electromechanical assembly of machined subsystems, and system integration and test services. Further, the company 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. It serves original equipment manufacturers in the advanced computing and communications, aerospace and defense, industrial, medical, and semiconductor capital equipment industries. The company markets its services and solutions primarily through a direct sales force. Benchmark Electronics, Inc. was founded in 1979 and is headquartered in Tempe, Arizona.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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📊 MIXED Q1 revenue $677M, EPS $0.58; full-year growth raised to 9-10%
Revenue & Profitability
Q1 2026 revenue: $677 million; non-GAAP EPS: $0.58. Non-GAAP gross margin: 10.3%, up 20 bps YoY; operating margin: 4.8%, up 20 bps YoY. Operating cash flow: $47 million; free cash flow: $29 million. Net cash position: $121 million.
Outlook
Management sees improving end market conditions, with demand signals stronger than 90 days ago. Full-year revenue growth is raised to 9%-10%, with EPS growth outpacing revenue. Semi-Cap is expected to grow mid-teens for the year; AC&C is expected to remain strong. Defense bookings remain robust, positioning for growth in 2027 despite near-term moderation.
Growth Drivers
Key growth drivers include semi-cap recovery (broad-based customer strength), Medical's breadth of wins and new program ramps, AI-related wins in AC&C (enterprise AI clusters and on-prem cloud infrastructure), and share-of-wallet expansion with existing and new customers in semi-cap. New logo wins are also contributing.
Balance Sheet & CapEx
Q1 capital expenditures: $18 million. The fourth Penang building (Penang 4) remains on track to begin operations in Q3 2026. Full-year CapEx expected at the higher end of the 2.0%-2.5% range, supporting capacity expansion for semi-cap and AC&C growth.
Margins
Non-GAAP gross margin improved 20 bps YoY to 10.3%; operating margin also up 20 bps to 4.8%. For Q2 2026, management guides gross margin of 10.4%-10.6% and operating margin of 5.1%-5.3%. Operating leverage is expected to improve through the year, with EPS growing 1.5-2.0x revenue growth.
Key Risks
Management flagged select lead time increases in the memory supply chain and component availability challenges. In Q&A, David noted that even if there is immediate resolution of geopolitical conflicts (Iran), defense spending could remain strong for 12-24 months due to replenishment needs.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Q2 2026 saw 18% revenue growth and 36% EPS growth, both above guidance, with strong performance in Semi-Cap, Industrial, Medical, and AC&C sectors. The 2026 revenue outlook was raised to $3 billion, and operational execution and supply chain management remain key priorities.
Q1 2026 Q1 2026 2026-04-29
Q1 revenue and EPS exceeded guidance, driven by strong execution and broad-based sector growth. Full-year outlook was raised, with Semi-Cap, Medical, and AC&C showing notable momentum, and continued operational discipline supporting margin expansion.
Q4 2025 Q4 2025 2026-02-03
Q4 2025 saw 7% revenue growth and strong performance in AC&C, Medical, and A&D, with gross margin above 10%. Full-year revenue was flat, but momentum improved in the second half. 2026 guidance calls for mid-single-digit growth, with Semi-Cap and Medical sectors expected to lead.
Q3 2025 Q3 2025 2025-11-04
Q3 2025 saw revenue and EPS at the high end of guidance, with broad-based sector growth and strong cash flow. Medical and A&D led with double-digit gains, while Semicap faces near-term softness but is expected to recover in late 2026. AI and automation investments support future growth.
Q2 2025 Q2 2025 2025-07-30
Q2 2025 saw revenue and EPS at guidance midpoints, with gross margin above 10% for the seventh straight quarter. Strong bookings and sector wins support a positive outlook for H2 2025, while cash flow and inventory management continue to improve.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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