Benchmark Electronics, based in Tempe, Arizona, provides integrated electronic manufacturing, engineering, and design services with 12,703 employees. Their offerings include advanced manufacturing, packaging technologies, and complex electromechanical assembly services.
Based on our analysis, Benchmark Electronics (BHE) has received an undervalued rating of 4 out of 5 stars from Cashu. This rating is supported by several key financial ratios that indicate strong performance relative to its sector.
The Price-to-Earnings (PE) ratio for Benchmark Electronics stands at 20.45, compared to the sector average of 22.55. A lower PE ratio suggests that the company’s stock may be undervalued relative to its earnings potential. Similarly, the Price-to-Book (PB) ratio of 1.47 versus the sector average of 3.24 indicates that the stock is trading at a lower price compared to its book value, further supporting the notion of undervaluation.
Benchmark's net profit margin of 2.38% is significantly higher than the sector's negative margin of -15.35%. This positive margin reflects the company's ability to generate profit from its revenue, showcasing operational efficiency. Additionally, the Return on Equity (ROE) ratio stands at 5.69%, contrasting sharply with the sector's -24.75%. A positive ROE indicates that Benchmark is effectively utilizing shareholders' equity to generate profits.
The company also boasts a dividend yield of 1.85%, far exceeding the sector average of 0.10%, providing investors with a steady income stream. The Return on Assets (ROA) ratio of 2.96%, compared to the sector's -12.89%, further illustrates Benchmark’s efficient use of assets to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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