- Benchmark Electronics' expanding product portfolio, and new business wins will drive revenue growth well above its historical run rate.
- Incremental gross margin improvements is highly likely as price increases can offset rising labor/commodity costs, and better utilization of pre-existing floor will lower fixed costs.
- I estimate that 7.33% annual revenue growth, 6.2% annual improvement in gross margins, and an annual 2% reduction in share outstanding will result in 26.6% annual EPS growth.
- I estimate that in 2014, the risk-to-reward is 3:1, favoring the upside. Over the long-term (five-years) I expect a 325% ROI on Benchmark Electronics.
- For the most part, economic outlook is stable, and many industry specific forecasts indicate that macro-risks are limited over the foreseeable future.