Benchmark Electronics, Inc.
Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.
Benchmark Electronics' revenue acceleration is real — Q2 2026 revenue of $756M grew 17.7% YoY with EPS of $0.55, and management is citing private-AI infrastructure and semiconductor capital equipment demand for a record 2026 outlook.
However, the stock trades at 55.0x trailing earnings versus a peer median of 24.5x, a 125% premium that already discounts much of the recovery, while FY2025 net margin collapsed to 0.93% and insiders have been consistent net sellers ($15.4M disposed over 24 months with zero open-market acquisitions). The P/S of 1.04x — 67% below the peer median of 3.18x — offers a margin-safety argument, but until multiple quarters of margin expansion confirm that revenue growth is flowing through to earnings, the risk/reward near $79 is balanced rather than compelling.
What could go wrong
- Margin compression persists. FY2025 net margin was just 0.93% with EPS of $0.68, down 60.5% YoY from $1.72. If the AI-driven revenue mix fails to lift operating margins above the 4.0% FY2025 level, the premium P/E of 55x becomes unsustainable.
- Insider selling accelerates. Over the trailing 24 months, insiders disposed a net 248,323 shares worth $15.4M with zero open-market purchases. The CEO and COO both sold in August 2026 at $84.17, near recent highs.
- Valuation re-rating reverses. At 55.0x trailing P/E and 19.9x EV/EBITDA — 125% and 26% above peer medians respectively — any disappointment in growth or margins could trigger a sharp de-rating toward the peer median multiples.
- End-market demand softens. The bullish case rests on private-AI and semiconductor cap-equipment demand; if these cycles slow before new programs reach profitable scale, the revenue acceleration seen in Q2 2026 (+17.7% YoY) could stall.
What would change my mind
Where this comes from: Q2 2026 results · FY25 fundamentals · peer comparison, 12 Oct · insider trades, 24 months to 17 Aug. Orin's read on BHE; not advice.
How has the share price moved?
Up 67.2% over twelve months, from $42.29 on 27 Oct 2025 to $70.70 at the Tue 27 Oct 2026 close. Its highest close in that time was $98.67 on 30 Jun 2026; the last close is 28.3% below it.
- Green line: the closing price each trading day.
- Grey line: the average closing price over the last 50 trading days.
- Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
- Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 1.8M, on 26 Jun 2026).
- Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).
On file
All BHE filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 8-K | 8 Sep | — | on file |
| 13G | 14 Aug | — | on file |
| 10-Q | 29 Jul | Benchmark Electronics reported net income of $19.9 million ($0.55 per diluted share) for the three months ended June 30, 2026, a significant increase from $1.0 million ($0.03 per… | read |
| 8-K | 29 Jul | Benchmark Electronics, Inc. reported its results for the quarter ended June 30, 2026, on July 29, 2026. | read |
| 13G/A | 28 Jul | — | on file |
| 13G/A | 14 Jul | — | on file |
| 8-K | 8 Jun | Benchmark Electronics, Inc. announced on June 8, 2026, that its Board of Directors declared a quarterly dividend of $0.17 per share. | read |
| 8-K | 29 May | Benchmark Electronics, Inc. held its Annual Meeting of Shareholders on May 28, 2026, where all submitted proposals were approved. | read |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| BlackRock | $579.8M | 0.0% |
| Vanguard Portfolio Management | $319.4M | 0.0% |
| Earnest Partners | $161.9M | 0.6% |
| Vanguard Capital Management | $153.4M | 0.0% |
| State Street | $141.6M | 0.0% |
| Geode Capital Management | $104.6M | 0.0% |
| Franklin Resources | $103.9M | 0.0% |
| Invesco | $100.0M | 0.0% |
| Goldman Sachs Group | $92.9M | 0.0% |
| Charles Schwab Investment Management | $58.4M | 0.0% |
58 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 127 Form 4 filings; open-market trades net −$14.3M. Of the 50 on hand, 0 were open-market purchases and 8 sales — the rest are grants, option exercises and tax withholding.
Ask Orin about BHE
Orin answers questions about BHE from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →How is it priced, against its own past and its sector?
Priced at 47.8× its last 12 months of profit (Tue 27 Oct close) — higher than in 4 of its last 5 fiscal years (middle 25.8×); the typical Technology company on the NYSE is at 39.5×.
| Measure | Now | Its usual | Sector |
|---|---|---|---|
| P/E | 47.8×above usual | 25.8× | 39.5× |
| P/S | 0.90×above usual | 0.43× | — |
| EV/EBITDA | 17.3×above usual | 9.3× | — |
| P/B | 2.3×above usual | 1.0× | — |
- "Its usual" is the middle of its own last 5 fiscal years.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.
What do the analysts who cover it publish?
Few analysts publish on it: 2 firms rated it in the last 18 months. The 12-month price targets on file average $91 (from $90 to $92) — 29% above the Tue 27 Oct close price. With so few, it is not a consensus; it is their published opinion, not Orin's.
$91
$90 – $92 · +29% against the last close
- 2 buy or overweight
- 0 hold
- 0 underweight or sell
Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.
Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.
How is it priced next to the companies it is compared to?
Priced at 47.8× its last 12 months of profit; the middle P/E of the 4 companies it is compared to that made a profit is 23.2×.
| Company | Market value | P/E | EV/EBITDA | Gross margin | Net margin | ROE |
|---|---|---|---|---|---|---|
| BHEBenchmark Electronics, Inc. | $3B | 47.8× | 17.3× | 10.2% | 1.9% | 5% |
| BELFBBel Fuse Inc. | $3B | 55.9× | 19.1× | 39.5% | 8.1% | 11% |
| CNXNPC Connection, Inc. | $2B | 23.4× | 15.1× | 18.9% | 3.2% | 10% |
| CTSCTS Corporation | $2B | 23.0× | 11.6× | 40.3% | 12.9% | 13% |
| OUSTOuster, Inc. | $2B | lost money | n/m | 49.6% | −26.0% | −18% |
| ROGRogers Corporation | $2B | 7.0× | 19.3× | 32.7% | 5.3% | 4% |
- OUST: lost money over the last 12 months, so no P/E.
- OUST: EV/EBITDA is not meaningful (n/m) — its cash exceeds its market value plus debt, or the business lost money before depreciation.
- The list of companies is the data vendor's choice, so it can include a company a person would not have picked.
Market value: the share price times the number of shares — what the whole company is priced at.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.
Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.
ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).
Is it priced high or low compared with its own past?
Priced at 47.8× its last 12 months of profit (Tue 27 Oct close). It has no full fiscal year on file since its history starts, so there is nothing of its own to compare with.
- Now47.8×
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.
How has its sector been priced?
Technology companies on the NYSE were priced at a typical 39.5× their yearly profit (Tue 27 Oct close).
- Now39.5×
- Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.
Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.
What does a cash-flow model say a share is worth?
A standard cash-flow model puts it at $25 a share — 65% below the $70.32 price it was computed against (27 Oct).
| Model | Value a share | Against the price then |
|---|---|---|
| Standard | $25 | 65% below $70.32 |
| Levered | $119 | 69% above $70.32 |
Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.
Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.