$Benchmark Electronics (BHE.US)$In the analysis two years ag...

The American company listed in 1990 mainly engages in product design, engineering services, technical solutions, and other businesses, with 60% of the market in the USA, current price is 31.2.

Over the past 5 years, there has been slight revenue growth with an average growth rate of 2%. Operating profit shrank in the first two years and grew in the recent 3 years, showing some cyclicality with an average growth rate of 11.7%. The net income had an average growth rate of 23%. Due to the impact of share buyback, the earnings per share growth rate reached 29.6%. In 2023, interest expenses accounted for 21.7% of operating profit, indicating a heavy interest burden. The gross margin has increased from 8.2% to 9.6% in the past 5 years, and the return on net assets has increased from 2.2% to 6.1%.

Currently, the PE ratio is 17.5 and the PB ratio is 1. Although the valuation may not seem high, both the gross margin and return on net assets do not currently have much appeal. Combined with what seems like a certain cyclicality, we are currently taking a wait-and-see approach.