Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Benchmark Electronics, Inc. (BHE)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$7.47 - $10.82$9.10
Multi-Stage$12.16 - $13.31$12.72
Blended Fair Value$10.91
Current Price$38.55
Upside-71.70%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.53%0.00%0.660.640.640.640.630.640.580.000.000.00
YoY Growth--1.95%1.29%-0.45%0.95%-1.06%10.86%0.00%0.00%0.00%0.00%
Dividend Yield--1.73%2.18%2.68%2.55%2.05%3.20%2.14%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)37.30
(-) Cash Dividends Paid (M)24.48
(=) Cash Retained (M)12.82
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.464.662.80
Cash Retained (M)12.8212.8212.82
(-) Cash Required (M)-7.46-4.66-2.80
(=) Excess Retained (M)5.368.1610.03
(/) Shares Outstanding (M)36.4336.4336.43
(=) Excess Retained per Share0.150.220.28
LTM Dividend per Share0.670.670.67
(+) Excess Retained per Share0.150.220.28
(=) Adjusted Dividend0.820.900.95
WACC / Discount Rate9.33%9.33%9.33%
Growth Rate-1.47%-0.47%0.53%
Fair Value$7.47$9.10$10.82
Upside / Downside-80.62%-76.40%-71.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)37.3037.1336.9536.7836.6136.4437.53
Payout Ratio65.62%70.50%75.37%80.25%85.12%90.00%92.50%
Projected Dividends (M)24.4826.1727.8529.5231.1632.7934.72

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.33%9.33%9.33%
Growth Rate-1.47%-0.47%0.53%
Year 1 PV (M)23.7023.9424.18
Year 2 PV (M)22.8323.3023.77
Year 3 PV (M)21.9122.5823.27
Year 4 PV (M)20.9421.8122.70
Year 5 PV (M)19.9620.9922.07
PV of Terminal Value (M)333.54350.81368.79
Equity Value (M)442.89463.43484.78
Shares Outstanding (M)36.4336.4336.43
Fair Value$12.16$12.72$13.31
Upside / Downside-68.46%-67.00%-65.48%

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