Benchmark Electronics Inc. Common Stock (BHE)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at Benchmark Electronics, I see a contract manufacturer and design-services firm with fiscal 2025, the period ended 2025-12-31, revenue of $2.7B, but only net income of $24.9M—a razor-thin margin. The fiscal Q2 2026 quarter ended 2026-06-30 showed revenue of $777.5M and net income of $19.9M, or diluted EPS of $0.55, a sharp rebound from fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $972,000 and diluted EPS was $0.03. That volatility tells me the business lacks the durable pricing power I look for. Returns on equity and capital are only 4.78% and 3.10% on FairStock's calculations, well below what a quality enterprise should earn. Debt to equity of 0.26 is manageable, and a Piotroski F-score of 8/9 suggests improving fundamentals, but the long-term record—fiscal 2023, period ended 2023-12-31, net income of $68.9M; fiscal 2024, period ended 2024-12-31, net income of $61.1M; fiscal 2025, period ended 2025-12-31, net income of $24.9M—shows how cyclical and low-margin this industry can be. The Lynch classification is STALWART, based on 12.1% five-year profit growth and 5.2% revenue growth, but those figures mask recent revenue decline from $3.0B in fiscal 2023, period ended 2023-12-31, to $2.7B in fiscal 2025, period ended 2025-12-31. At $78.75 on 2026-10-13, FairStock's P/E is 53.94 and P/B is 2.53. FairStock's Graham Number is $31.97, implying the price is far above a conservative asset-and-earnings value. Free cash flow of $123.7M gives a 4.4% FCF yield, which is respectable, but not enough to justify the multiple. I want a margin of safety; here the FairStock margin of safety is negative 146.32%. This is a financially stable but commoditized business priced as if it had a wide moat.

In plain English: Benchmark Electronics helps other companies design and build electronic products and parts. The business is profitable and has improved recently, but profit margins are thin and the company earns low returns on the money it invests. At the recent price, the shares look expensive compared with the company’s earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer