HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
NYSE:HEI.A - New York Stock Exchange, Inc. - US4228062083 - Common Stock - Currency: USD
HEI.A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 66 industry peers in the Aerospace & Defense industry. HEI.A scores excellent on profitability, but there are some minor concerns on its financial health. HEI.A is valued quite expensively, but it does show have an excellent growth rating. With these ratings, HEI.A could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
HEI.A had positive earnings in the past year.
HEI.A had a positive operating cash flow in the past year.
HEI.A had positive earnings in each of the past 5 years.
In the past 5 years HEI.A always reported a positive cash flow from operatings.
1.2 Ratios
HEI.A has a Return On Assets of 7.43%. This is amongst the best in the industry. HEI.A outperforms 80.30% of its industry peers.
HEI.A has a Return On Equity of 15.15%. This is amongst the best in the industry. HEI.A outperforms 81.82% of its industry peers.
HEI.A has a Return On Invested Capital of 10.04%. This is amongst the best in the industry. HEI.A outperforms 84.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HEI.A is in line with the industry average of 8.47%.
The last Return On Invested Capital (10.04%) for HEI.A is above the 3 year average (9.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 15.15% | ||
| ROIC | 10.04% |
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 14.54%, HEI.A belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
In the last couple of years the Profit Margin of HEI.A has declined.
HEI.A has a Operating Margin of 22.20%. This is amongst the best in the industry. HEI.A outperforms 93.94% of its industry peers.
In the last couple of years the Operating Margin of HEI.A has remained more or less at the same level.
HEI.A has a better Gross Margin (39.35%) than 81.82% of its industry peers.
HEI.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 14.54% | ||
| GM | 39.35% |
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 below the Cost of Capital (WACC), so HEI.A is destroying value.
HEI.A has more shares outstanding than it did 1 year ago.
HEI.A has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HEI.A has been reduced compared to a year ago.
2.2 Solvency
HEI.A has an Altman-Z score of 6.80. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.80, HEI.A is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
The Debt to FCF ratio of HEI.A is 2.99, which is a good value as it means it would take HEI.A, 2.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.99, HEI.A belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
HEI.A has a Debt/Equity ratio of 0.57. This is a neutral value indicating HEI.A is somewhat dependend on debt financing.
The Debt to Equity ratio of HEI.A (0.57) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 6.8 |
ROIC/WACC0.94
WACC10.66%
2.3 Liquidity
A Current Ratio of 3.43 indicates that HEI.A has no problem at all paying its short term obligations.
HEI.A's Current ratio of 3.43 is fine compared to the rest of the industry. HEI.A outperforms 74.24% of its industry peers.
A Quick Ratio of 1.56 indicates that HEI.A should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.56, HEI.A is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
HEI.A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
HEI.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.90% yearly.
Looking at the last year, HEI.A shows a quite strong growth in Revenue. The Revenue has grown by 17.74% in the last year.
HEI.A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.42% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
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 21.41% 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 10.16% on average per year.
EPS Next Y26.47%
EPS Next 2Y19.86%
EPS Next 3Y17.58%
EPS Next 5Y21.41%
Revenue Next Year11.67%
Revenue Next 2Y10.01%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 59.14, the valuation of HEI.A can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HEI.A is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HEI.A to the average of the S&P500 Index (27.50), we can say HEI.A is valued expensively.
The Price/Forward Earnings ratio is 48.14, which means the current valuation is very expensive for HEI.A.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI.A is on the same level as its industry peers.
HEI.A is valuated rather expensively when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.14 | ||
| Fwd PE | 48.14 |
4.2 Price Multiples
HEI.A's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HEI.A is valued a bit cheaper than 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.2 | ||
| EV/EBITDA | 33.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.23
PEG (5Y)6.65
EPS Next 2Y19.86%
EPS Next 3Y17.58%
5. Dividend
5.1 Amount
HEI.A has a yearly dividend return of 0.08%, which is pretty low.
Compared to an average industry Dividend Yield of 1.19, HEI.A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, HEI.A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
The dividend of HEI.A is nicely growing with an annual growth rate of 8.45%!
HEI.A has been paying a dividend for at least 10 years, so it has a reliable track record.
As HEI.A did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.45%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
5.08% of the earnings are spent on dividend by HEI.A. This is a low number and sustainable payout ratio.
HEI.A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5.08%
EPS Next 2Y19.86%
EPS Next 3Y17.58%
253.13
+1.22 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners71.77%
Inst Owner Change0%
Ins Owners22.67%
Ins Owner ChangeN/A
Market Cap35.21B
Analysts77.5
Price Target243.28 (-3.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.08%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.45%
Min EPS beat(2)7.42%
Max EPS beat(2)25.49%
EPS beat(4)3
Avg EPS beat(4)9.2%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.09%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)13
Avg EPS beat(16)4.06%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)2.31%
Max Revenue beat(2)4.12%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.95%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)9
Avg Revenue beat(16)0.57%
PT rev (1m)2.07%
PT rev (3m)8.31%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)2.12%
EPS NY rev (1m)3.06%
EPS NY rev (3m)3.15%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.14 | ||
| Fwd PE | 48.14 | ||
| P/S | 8.52 | ||
| P/FCF | 46.2 | ||
| P/OCF | 42.56 | ||
| P/B | 8.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.66 |
EPS(TTM)4.28
EY1.69%
EPS(NY)5.26
Fwd EY2.08%
FCF(TTM)5.48
FCFY2.16%
OCF(TTM)5.95
OCFY2.35%
SpS29.72
BVpS28.52
TBVpS-7.16
PEG (NY)2.23
PEG (5Y)6.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 15.15% | ||
| ROCE | 12.35% | ||
| ROIC | 10.04% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 33.57% | ||
| OM | 22.2% | ||
| PM (TTM) | 14.54% | ||
| GM | 39.35% | ||
| FCFM | 18.43% |
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%
ROICexcg growth 3Y3.12%
ROICexcg 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 35.44% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 126.8% | ||
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 6.8 |
F-Score8
WACC10.66%
ROIC/WACC0.94
Cap/Depr(3y)34.82%
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)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
EPS Next Y26.47%
EPS Next 2Y19.86%
EPS Next 3Y17.58%
EPS Next 5Y21.41%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
Revenue Next Year11.67%
Revenue Next 2Y10.01%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year37.56%
EBIT Next 3Y17.14%
EBIT Next 5Y20.23%
FCF growth 1Y85.96%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y84.87%
OCF growth 3Y14.83%
OCF growth 5Y8.98%