Is Now a Time to Put Benchmark Electronics (NYSE:BHE) On Your Wish List?

It is common for many investors, especially inexperienced ones, to buy stocks in companies with a good story even if those companies are incurring losses. Sometimes, these stories can cloud the minds of investors, leading them to invest with their emotions rather than with good company fundamentals. Losing companies can act like sponges for capital – so investors need to be careful that they don’t throw good money after bad.

Contrary to all that, many investors prefer to focus on companies like Benchmark Electronics (NYSE: BHE), which generates not only revenue, but also profit. Now this does not mean that the company offers the best investment opportunity, but profitability is an essential component of success in the business.

View our latest analysis for Benchmark Electronics

Earnings per share of Benchmark Electronics are growing

In general, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So, there are a lot of investors who want to buy shares in companies that are growing EPS. Benchmark Electronics has managed to increase earnings per share by 5.3% annually over three years. While this kind of growth rate is nothing to write home about, it does show that the business is growing.

Looking carefully at revenue growth and EBIT margins can help form a view on the sustainability of recent earnings growth. Benchmark Electronics maintained margins flat over the past year, while revenue increased 29% to $2.8 billion. This is a real positive.

In the chart below, you can see how the company has grown its earnings and revenue over time. For more details, click on the image.

Earnings and revenue history

Earnings and revenue history

While we live in the present, there is no doubt that the future is most important in the investment decision making process. So why not check out this interactive chart depicting future EPS estimates for Benchmark Electronics?

Are Insiders Benchmark Electronics compatible with all contributors?

It is gratifying to see company leaders put their money on the line, so to speak, because it increases the incentive alignment between the people who run the company and its true owners. Shareholders will be pleased with the fact that insiders own shares of Benchmark Electronics at a significant value. Specifically, they have shares worth $15 million USD. This significant investment should help create long-term value in the business. Despite being only 1.5% of the company, the value of this investment is enough to show that insiders have a lot riding on the project.

Does Benchmark Electronics Deserve a Spot on Your Wish List?

An important encouraging feature of Benchmark Electronics is the increase in profits. If that wasn’t enough on its own, there are also the notable levels of in-house ownership. These two factors are a huge advantage for a company that should be a strong competitor for your watchlists. However, you should learn more about 3 warning signs We found out with Benchmark Electronics (including 1 potentially dangerous one).

While Benchmark Electronics sure looks good, it could attract more investors if insiders buy the stock. If you’d like to see the insider’s buying, that is Free A growing list of companies that Insiders buy from, they might be exactly what you’re looking for.

Please note that the insider transactions discussed in this article refer to transactions that must be reported in the relevant jurisdiction.

Do you have feedback on this article? Worried about the content? keep in touch directly with us. Alternatively, email the editorial team (at) simplywallst.com.

This article written by Simply Wall St is general in nature. We provide comments based on historical data and analyst predictions only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and it does not take into account your objectives or financial situation. We aim to provide you with focused, long-term analysis driven by fundamental data. Note that our analysis may not include the company’s most recent price-sensitive announcements or specific materials. Wall Street simply has no position in any of the stocks mentioned.

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