$Benchmark Electronics (BHE.US)$In the analysis 2 years ago,...

The US company, which was listed in 1990, is mainly engaged in product design, engineering services, technical solutions, etc. 60% of the market is in the US, and the current price is 31.2.

There has been a slight increase in revenue fluctuations over the past 5 years, with an average growth rate of 2%. Operating profit shrank in the previous two years and increased in the past 3 years. There is a certain periodicity. The average growth rate is 11.7%, and the average net profit growth rate is 23%. Due to share buybacks, earnings per share grew by 29.6%. Interest expenses account for 21.7% of operating profit in 2023, and the interest burden is heavy. The gross margin increased from 8.2% to 9.6% in the past 5 years, and the return on net assets increased from 2.2% to 6.1%.

Currently, the price-earnings ratio is 17.5 and the net price-earnings ratio is 1. Although the valuation doesn't seem high, the gross margin and return on net assets are currently not very attractive. Plus, they seem to be somewhat cyclical, so wait and see for the time being.