# Benchmark Electronics (BHE.US)

Canonical: https://gigainvestors.com/s/BHE

Analysis as of: 2026-10-16T07:26:55.609Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $73.22 per share; close as of 2026-10-15.

Estimated value: low $21.55 per share, central $23.53 per share, high $26.16 per share. Buy at or below the central value $23.53 per share. Valuation as of 2026-10-16T07:26:55.609Z; scenarios are not confidence intervals.

Expected annual return: 4.7% at the stated quote. About 4.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.02×

- FY2019: 0.01×

- FY2020: 0.01×

- FY2021: 0.02×

- FY2022: 0.03×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.04×

- LTM to Jun 2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.3%

- ROIC, second-lowest year: 3.5%

- Typical minus recent gross margin: -1.0 pp

- Typical gross margin (annual median): 9.2%

- Recent gross margin (lower of latest and 3-year median): 10.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 3.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.3%

- FY2018: 6.0%

- FY2019: 3.5%

- FY2020: 3.3%

- FY2021: 5.7%

- FY2022: 7.0%

- FY2023: 8.2%

- FY2024: 8.6%

- FY2025: 7.6%

- LTM to Jun 2026: 8.7%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $248M

- Net income, five-year total: $256M

- Return on incremental invested capital: -654.7%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 7.1 pp

- Working capital / revenue, final three-year average: 29.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.06×

- FY2022: 1.00×

- FY2023: 0.50×

- FY2024: 1.20×

- FY2025: 1.37×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.3% vs 8.2%

- Per-share earnings: 1.29 to 1.72 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.5%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: $21M

- Cumulative retained earnings: -$180M

- Diluted shares, 10-year annual growth: -3.5%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.7%

- Per-share value change: $0.44

- Per-share value, starting three-year median: $1.29

- Per-share value, ending three-year median: $1.72

- Buybacks concentrated in cheaper years (correlation): -0.35

- Average buyback yield: 4.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $0

- Cumulative net income, 10 years: $349M

- ROIC, first three-year median: 8.3%

- ROIC, last three-year median: 8.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.29

- FY2017: -$0.64

- FY2018: $0.49

- FY2019: $0.60

- FY2020: $0.38

- FY2021: $0.99

- FY2022: $1.91

- FY2023: $1.79

- FY2024: $1.72

- FY2025: $0.68

### accounting: pass

- Sloan accruals: -4.8%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 13.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.99×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.21×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.4%

- FY2017: -8.5%

- FY2018: -2.8%

- FY2019: -4.0%

- FY2020: -6.1%

- FY2021: 2.0%

- FY2022: 11.0%

- FY2023: -4.8%

- FY2024: -5.9%

- FY2025: -4.8%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 26% since Jun 2026 · sales +6%

Story as of 2026-10-16T09:58:23.835Z; price observation 2026-10-15.

Price needs cash profits to grow 18.7% a year for ten years

### Sales · FY2025–2026

sales +6%; source https://www.sec.gov/Archives/edgar/data/863436/000119312526064849/bhe-20251231.htm; observed 2026-02-24.

- FY2017: $2.5B 

- FY2018: $2.6B 

- FY2019: $2.3B 

- FY2020: $2.1B 

- FY2021: $2.3B 

- FY2022: $2.9B 

- FY2023: $2.8B 

- FY2024: $2.7B 

- FY2025: $2.7B 

- FY2026: $2.8B 

### Gross margin · FY2026

gross margin 10.2%; source https://www.sec.gov/Archives/edgar/data/863436/000119312526064849/bhe-20251231.htm; observed 2026-02-24.

- FY2017: 9.2% 

- FY2018: 8.6% 

- FY2019: 8.2% 

- FY2020: 8.5% 

- FY2021: 9.1% 

- FY2022: 8.8% 

- FY2023: 9.5% 

- FY2024: 10.2% 

- FY2025: 10.0% 

- FY2026: 10.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic components; annual sales are USD 2.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/863436/000119312526064849/bhe-20251231.htm (filed 2026-02-24); FY2025: revenue 2659108000; grossProfit 264947000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BHE.US: 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.

### Why customers stay

Margins ranged from 9.5% to 10.2% during 2023–25; it earns 7.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 9.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 10.2%.

- Source: https://www.sec.gov/Archives/edgar/data/863436/000119312526064849/bhe-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 10%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2017,0.08285324394800342],[2018,0.0598193300496638],[2019,0.03549706999166803],[2020,0.03300154533032113],[2021,0.05717543750318564],[2022,0.07016023315782081],[2023,0.08162146744809524],[2024,0.08571648597026404],[2025,0.07647644174466525],[2026,0.08699128398771096]]; median 0.07331833745124303. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 9% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/863436/000119312526064849/bhe-20251231.htm (filed 2026-02-24); Gross margin observations: [[2021,0.09129573244405781],[2022,0.08842887388868428],[2023,0.0954816102707455]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 26.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 32334000; owner earnings 86096000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 7330868.215332434; upkeep 59401131.78466757; owner earnings 12537868.215332434. Growth capex / owner earnings = 0.584698139223348.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 35118000; owner earnings 36734000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 39519000; owner earnings 23328000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 42177000; owner earnings 37745000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 2522000; upkeep 44252000; owner earnings 68229000. Growth capex / owner earnings = 0.03696375441527796.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 77739000; owner earnings 31986000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 33253000; owner earnings 76218000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/863436/000119312526064849/bhe-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 38544000; owner earnings 33938000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,21005000],[2017,21005000],[2018,21005000],[2019,23287000],[2020,23041000],[2021,23260000],[2022,23156000],[2023,23455000],[2024,23913000],[2025,24425000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/863436/000119312526064849/bhe-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 26848000 USD.

### Are managers owners

Insiders own 1.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BHE.US SharesStats.PercentInsiders = 1.807 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 18.7% yearly over ten years; actual decline was 7.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.2582751405922489. Price 73.22; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.0544271233297495 → FY2025 0.9349311294765841. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $25.15 per share

- 2016-11: $28.35 per share

- 2016-12: $30.50 per share

- 2017-01: $30.60 per share

- 2017-02: $31.10 per share

- 2017-03: $31.80 per share

- 2017-04: $31.70 per share

- 2017-05: $32.30 per share

- 2017-06: $32.30 per share

- 2017-07: $33.65 per share

- 2017-08: $32.50 per share

- 2017-09: $34.15 per share

- 2017-10: $30.95 per share

- 2017-11: $30.50 per share

- 2017-12: $29.10 per share

- 2018-01: $28.95 per share

- 2018-02: $30.00 per share

- 2018-03: $29.85 per share

- 2018-04: $26.30 per share

- 2018-05: $27.70 per share

- 2018-06: $29.15 per share

- 2018-07: $24.20 per share

- 2018-08: $25.85 per share

- 2018-09: $23.40 per share

- 2018-10: $21.83 per share

- 2018-11: $23.84 per share

- 2018-12: $21.18 per share

- 2019-01: $25.42 per share

- 2019-02: $27.40 per share

- 2019-03: $26.25 per share

- 2019-04: $27.03 per share

- 2019-05: $22.09 per share

- 2019-06: $25.12 per share

- 2019-07: $27.06 per share

- 2019-08: $26.48 per share

- 2019-09: $29.06 per share

- 2019-10: $33.90 per share

- 2019-11: $34.47 per share

- 2019-12: $34.36 per share

- 2020-01: $30.78 per share

- 2020-02: $27.18 per share

- 2020-03: $19.99 per share

- 2020-04: $20.66 per share

- 2020-05: $21.19 per share

- 2020-06: $21.60 per share

- 2020-07: $20.36 per share

- 2020-08: $19.61 per share

- 2020-09: $20.15 per share

- 2020-10: $20.83 per share

- 2020-11: $24.32 per share

- 2020-12: $27.01 per share

- 2021-01: $25.33 per share

- 2021-02: $28.40 per share

- 2021-03: $30.92 per share

- 2021-04: $30.02 per share

- 2021-05: $30.95 per share

- 2021-06: $28.46 per share

- 2021-07: $26.40 per share

- 2021-08: $27.03 per share

- 2021-09: $26.71 per share

- 2021-10: $23.31 per share

- 2021-11: $23.58 per share

- 2021-12: $27.10 per share

- 2022-01: $24.14 per share

- 2022-02: $26.14 per share

- 2022-03: $25.04 per share

- 2022-04: $23.76 per share

- 2022-05: $25.49 per share

- 2022-06: $22.56 per share

- 2022-07: $25.58 per share

- 2022-08: $27.45 per share

- 2022-09: $24.78 per share

- 2022-10: $28.39 per share

- 2022-11: $28.87 per share

- 2022-12: $26.69 per share

- 2023-01: $27.99 per share

- 2023-02: $23.79 per share

- 2023-03: $23.69 per share

- 2023-04: $21.35 per share

- 2023-05: $23.61 per share

- 2023-06: $25.83 per share

- 2023-07: $26.51 per share

- 2023-08: $25.74 per share

- 2023-09: $24.26 per share

- 2023-10: $24.21 per share

- 2023-11: $24.95 per share

- 2023-12: $27.64 per share

- 2024-01: $27.12 per share

- 2024-02: $30.71 per share

- 2024-03: $30.01 per share

- 2024-04: $30.21 per share

- 2024-05: $43.07 per share

- 2024-06: $39.46 per share

- 2024-07: $47.87 per share

- 2024-08: $42.51 per share

- 2024-09: $44.32 per share

- 2024-10: $43.30 per share

- 2024-11: $48.49 per share

- 2024-12: $45.40 per share

- 2025-01: $42.66 per share

- 2025-02: $39.96 per share

- 2025-03: $38.03 per share

- 2025-04: $32.53 per share

- 2025-05: $36.52 per share

- 2025-06: $38.83 per share

- 2025-07: $38.50 per share

- 2025-08: $40.59 per share

- 2025-09: $38.55 per share

- 2025-10: $43.82 per share

- 2025-11: $44.93 per share

- 2025-12: $42.76 per share

- 2026-01: $52.14 per share

- 2026-02: $57.81 per share

- 2026-03: $56.06 per share

- 2026-04: $82.05 per share

- 2026-05: $84.46 per share

- 2026-06: $98.67 per share

- 2026-07: $79.77 per share

- 2026-08: $70.28 per share

- 2026-09: $82.91 per share

- 2026-10: $73.22 per share

## Annual estimated value (USD per share)

- FY2016: low $31.64 per share, central $34.24 per share, high $37.71 per share

- FY2017: low $34.18 per share, central $36.97 per share, high $40.68 per share

- FY2018: low $27.77 per share, central $31.79 per share, high $35.60 per share

- FY2019: low $18.15 per share, central $19.58 per share, high $21.48 per share

- FY2020: low $16.43 per share, central $17.38 per share, high $18.65 per share

- FY2021: low $14.04 per share, central $15.11 per share, high $16.53 per share

- FY2022: low $19.58 per share, central $23.09 per share, high $26.23 per share

- FY2023: low $20.10 per share, central $22.03 per share, high $24.59 per share

- FY2024: low $20.35 per share, central $22.17 per share, high $24.59 per share

- FY2025: low $20.81 per share, central $22.65 per share, high $25.11 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/863436/000119312526064849/bhe-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.