Vince Martin
Long/short equity, value, gambling

Benchmark Electronics: Too Far, Too Fast

At first glance, Benchmark Electronics (NYSE:BHE) appears to be a value stock investor's dream. The provider of electronics manufacturing services closed Monday at $19.53; based on trailing twelve-month non-GAAP earnings of $1.18 per share, its P/E ratio sits at a reasonable 16.6.

But that multiple alone doesn't do justice to BHE's strong fundamentals. Benchmark has nearly $8 per share in net cash; backing out that cash, its earnings multiple falls below 11. More impressively, trailing twelve-month cash flow has been nearly $180 million, nearly 30 percent of the company's enterprise value of $650 million. And to top it all off, the company's tangible book value sits at $20.03 per share, above Monday's close.

Those fundamentals exist despite the...

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