HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - NYSE:HEI.A - US4228062083 - Common Stock
246.65 USD
-0.91 (-0.37%)
246.65 USD
0 (0%)
Overall HEI.A gets a fundamental rating of 7 out of 10. We evaluated HEI.A against 70 industry peers in the Aerospace & Defense industry. While HEI.A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HEI.A is valued quite expensively, but it does show have an excellent growth rating. This makes HEI.A very considerable for growth investing!
1. Profitability
1.1 Basic Checks
HEI.A had positive earnings in the past year.
In the past year HEI.A had a positive cash flow from operations.
HEI.A had positive earnings in each of the past 5 years.
HEI.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEI.A has a better Return On Assets (7.52%) than 82.86% of its industry peers.
With an excellent Return On Equity value of 15.50%, HEI.A belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.98%, HEI.A belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HEI.A is in line with the industry average of 8.41%.
The 3 year average ROIC (9.51%) for HEI.A is below the current ROIC(9.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 15.5% | ||
| ROIC | 9.98% |
ROA(3y)6.99%
ROA(5y)7.7%
ROE(3y)13.49%
ROE(5y)13.95%
ROIC(3y)9.51%
ROIC(5y)9.55%
1.3 Margins
With an excellent Profit Margin value of 14.96%, HEI.A belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
In the last couple of years the Profit Margin of HEI.A has declined.
The Operating Margin of HEI.A (22.38%) is better than 94.29% of its industry peers.
HEI.A's Operating Margin has been stable in the last couple of years.
The Gross Margin of HEI.A (39.51%) is better than 81.43% of its industry peers.
HEI.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.38% | ||
| PM (TTM) | 14.96% | ||
| GM | 39.51% |
OM growth 3Y0.8%
OM growth 5Y-0.61%
PM growth 3Y-6.5%
PM growth 5Y-3.53%
GM growth 3Y-0.05%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI.A is still creating some value.
HEI.A has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HEI.A has more shares outstanding
Compared to 1 year ago, HEI.A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.39 indicates that HEI.A is not in any danger for bankruptcy at the moment.
HEI.A's Altman-Z score of 6.39 is fine compared to the rest of the industry. HEI.A outperforms 67.14% of its industry peers.
HEI.A has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as HEI.A would need 3.13 years to pay back of all of its debts.
HEI.A's Debt to FCF ratio of 3.13 is amongst the best of the industry. HEI.A outperforms 88.57% of its industry peers.
HEI.A has a Debt/Equity ratio of 0.59. This is a neutral value indicating HEI.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, HEI.A is in line with its industry, outperforming 44.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.39 |
ROIC/WACC1.05
WACC9.5%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI.A has no problem at all paying its short term obligations.
HEI.A has a better Current ratio (3.35) than 71.43% of its industry peers.
HEI.A has a Quick Ratio of 1.51. This is a normal value and indicates that HEI.A is financially healthy and should not expect problems in meeting its short term obligations.
HEI.A has a Quick ratio of 1.51. This is comparable to the rest of the industry: HEI.A outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.02% over the past year.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
The Revenue has grown by 13.46% in the past year. This is quite good.
Measured over the past years, HEI.A shows a quite strong growth in Revenue. The Revenue has been growing by 13.42% on average per year.
EPS 1Y (TTM)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
3.2 Future
Based on estimates for the next years, HEI.A will show a very strong growth in Earnings Per Share. The EPS will grow by 21.94% on average per year.
Based on estimates for the next years, HEI.A will show a quite strong growth in Revenue. The Revenue will grow by 10.46% on average per year.
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 53.97 indicates a quite expensive valuation of HEI.A.
The rest of the industry has a similar Price/Earnings ratio as HEI.A.
When comparing the Price/Earnings ratio of HEI.A to the average of the S&P500 Index (27.08), we can say HEI.A is valued expensively.
The Price/Forward Earnings ratio is 45.67, which means the current valuation is very expensive for HEI.A.
HEI.A's Price/Forward Earnings ratio is in line with the industry average.
HEI.A's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.97 | ||
| Fwd PE | 45.67 |
4.2 Price Multiples
HEI.A's Enterprise Value to EBITDA is on the same level as the industry average.
72.86% of the companies in the same industry are more expensive than HEI.A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.88 | ||
| EV/EBITDA | 31.88 |
4.3 Compensation for Growth
HEI.A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HEI.A has an outstanding profitability rating, which may justify a higher PE ratio.
HEI.A's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)6.07
EPS Next 2Y21.47%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
HEI.A has a yearly dividend return of 0.08%, which is pretty low.
HEI.A's Dividend Yield is a higher than the industry average which is at 1.11.
With a Dividend Yield of 0.08, HEI.A pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
On average, the dividend of HEI.A grows each year by 8.47%, which is quite nice.
HEI.A has paid a dividend for at least 10 years, which is a reliable track record.
HEI.A has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.47%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI.A pays out 4.98% of its income as dividend. This is a sustainable payout ratio.
HEI.A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.98%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
246.65
-0.91 (-0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.14%
Ins Owners22.66%
Ins Owner ChangeN/A
Market Cap34.34B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target283.84 (15.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.21
Dividend Growth(5Y)8.47%
DP4.98%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.61%
Min EPS beat(2)7.42%
Max EPS beat(2)9.81%
EPS beat(4)3
Avg EPS beat(4)10.62%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.67%
EPS beat(12)10
Avg EPS beat(12)6.19%
EPS beat(16)13
Avg EPS beat(16)4.61%
Revenue beat(2)2
Avg Revenue beat(2)2.07%
Min Revenue beat(2)1.83%
Max Revenue beat(2)2.31%
Revenue beat(4)3
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.93%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)10
Avg Revenue beat(16)0.94%
PT rev (1m)0.66%
PT rev (3m)10.67%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)4.7%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)4.03%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.97 | ||
| Fwd PE | 45.67 | ||
| P/S | 8.01 | ||
| P/FCF | 43.88 | ||
| P/OCF | 40.66 | ||
| P/B | 8.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.88 |
EPS(TTM)4.57
EY1.85%
EPS(NY)5.4
Fwd EY2.19%
FCF(TTM)5.62
FCFY2.28%
OCF(TTM)6.07
OCFY2.46%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)1.71
PEG (5Y)6.07
Graham Number55.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 15.5% | ||
| ROCE | 12.28% | ||
| ROIC | 9.98% | ||
| ROICexc | 10.32% | ||
| ROICexgc | 32.53% | ||
| OM | 22.38% | ||
| PM (TTM) | 14.96% | ||
| GM | 39.51% | ||
| FCFM | 18.24% |
ROA(3y)6.99%
ROA(5y)7.7%
ROE(3y)13.49%
ROE(5y)13.95%
ROIC(3y)9.51%
ROIC(5y)9.55%
ROICexc(3y)9.8%
ROICexc(5y)10.06%
ROICexgc(3y)32.71%
ROICexgc(5y)32.17%
ROCE(3y)11.7%
ROCE(5y)11.75%
ROICexgc growth 3Y3.12%
ROICexgc growth 5Y-6.54%
ROICexc growth 3Y-1.06%
ROICexc growth 5Y-6.74%
OM growth 3Y0.8%
OM growth 5Y-0.61%
PM growth 3Y-6.5%
PM growth 5Y-3.53%
GM growth 3Y-0.05%
GM growth 5Y-0.34%
F-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 32.77% | ||
| Cap/Sales | 1.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.46% | ||
| Profit Quality | 121.92% | ||
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 6.39 |
F-Score8
WACC9.5%
ROIC/WACC1.05
Cap/Depr(3y)34.81%
Cap/Depr(5y)33.85%
Cap/Sales(3y)1.54%
Cap/Sales(5y)1.57%
Profit Quality(3y)114.11%
Profit Quality(5y)119.88%
High Growth Momentum
Growth
EPS 1Y (TTM)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.27%
EBIT Next 5Y20.69%
FCF growth 1Y94.39%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y90.09%
OCF growth 3Y14.83%
OCF growth 5Y8.98%
HEICO CORP-CLASS A / HEI.A FAQ
What is the fundamental rating for HEI.A stock?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.A.
Can you provide the valuation status for HEICO CORP-CLASS A?
ChartMill assigns a valuation rating of 3 / 10 to HEICO CORP-CLASS A (HEI.A). This can be considered as Overvalued.
What is the profitability of HEI.A stock?
HEICO CORP-CLASS A (HEI.A) has a profitability rating of 8 / 10.
What is the financial health of HEICO CORP-CLASS A (HEI.A) stock?
The financial health rating of HEICO CORP-CLASS A (HEI.A) is 6 / 10.
What is the expected EPS growth for HEICO CORP-CLASS A (HEI.A) stock?
The Earnings per Share (EPS) of HEICO CORP-CLASS A (HEI.A) is expected to grow by 31.63% in the next year.