Benchmark Electronics (BHE) Margin Compression Reinforces Bearish Narratives Despite Revenue Progress
Benchmark Electronics (BHE) finished FY 2025 with Q4 revenue of US$704.3 million but saw a significant drop in basic EPS to US$0.17 from US$0.51 in Q4 2024, alongside a net margin compression to 0.9%. This decline in profitability, coupled with a high P/E ratio of 80.4x compared to its industry, supports bearish views, despite modest revenue growth and analyst forecasts for strong future earnings growth. Investors are now scrutinizing whether the company's valuation is justified by its potential for improved profitability rather than current margins.
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