At the moment, the debt-to-equity of Benchmark Electronics, Inc. (NYSE:BHE) is low, standing at 13.61, a figure that is less than the 17.57 average recorded by the industry. This means that the company is currently holding a debt level at 154.07 M. BHE shares have a strong debt-to-equity ratio but their quick ratio which reads 2.30 is strong and might cause problems for them later in the future.
Even though there was a drop of -3.35% in revenue, the company failed to succeed in outperforming the industry average of 23.15%. The -1.35% yoy growth of BHE’s revenue has gone down that of the industry average by -5.91%. For the past 12 months, Benchmark Electronics, Inc. revenue has gone up by 4.56%. The sustained growth in their revenue has helped boost their earnings per share.
The 12-month return on equity has significantly fallen to 3.92 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Technology sector, the industry average is 10.01 while 17.29 is of the sector.
Also, looking at the price to cash flow of the company and the industry average, the 11.96 ratio of the stock is lower than the industry’s 102.56.
Benchmark Electronics, Inc. (NYSE:BHE) has a price-to-earnings ratio of 26.32 which is lower than the 4,087.57 industry average at the moment. In addition to their unfavorable P/E ratio, Benchmark Electronics, Inc. has maintained a gross margin of 8.60. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 2.41 when compared to 19.34 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Benchmark Electronics, Inc. ROE is above 17.29 that of both the sector average.
The operating profit margin for Benchmark Electronics, Inc. (BHE) is 2.28%, a figure which is considered to be weak. It has gone 28.93 from the 3.19 over the past 5 years. In addition to this, their operating margin is -26.65 lower than the industry average.
The net profit margin which stood at 2.80 on average in the past 5 years has dropped to 1.89 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 20.06.
Still some above discussed indicators of the $1.28B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the BHE shares to either perform positively or negatively when compared to other stocks. The primary strengths of Benchmark Electronics, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.