HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
258.95 USD
+0.97 (+0.38%)
258.95 USD
0 (0%)
HEI.A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. HEI.A has an excellent profitability rating, 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. 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.
- In the past 5 years HEI.A always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of HEI.A (8.12%) is better than 86.30% of its industry peers.
- Looking at the Return On Equity, with a value of 16.04%, HEI.A belongs to the top of the industry, outperforming 82.19% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 11.03%, HEI.A belongs to the best of the industry, outperforming 86.30% 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 8.56%.
- The 3 year average ROIC (9.64%) for HEI.A is below the current ROIC(11.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROIC | 11.03% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.39%, HEI.A belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
- HEI.A's Profit Margin has declined in the last couple of years.
- The Operating Margin of HEI.A (22.72%) is better than 93.15% of its industry peers.
- In the last couple of years the Operating Margin of HEI.A has grown nicely.
- HEI.A has a better Gross Margin (39.83%) than 80.82% of its industry peers.
- In the last couple of years the Gross Margin of HEI.A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% |
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI.A is creating some value.
- HEI.A has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HEI.A has been increased compared to 5 years ago.
- Compared to 1 year ago, HEI.A has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.88 indicates that HEI.A is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 6.88, HEI.A is doing good in the industry, outperforming 65.75% of the companies in the same industry.
- The Debt to FCF ratio of HEI.A is 2.52, which is a good value as it means it would take HEI.A, 2.52 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 2.52, HEI.A belongs to the best of the industry, outperforming 89.04% of the companies in the same industry.
- HEI.A has a Debt/Equity ratio of 0.50. This is a neutral value indicating HEI.A is somewhat dependend on debt financing.
- The Debt to Equity ratio of HEI.A (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 6.88 |
ROIC/WACC1.09
WACC10.09%
2.3 Liquidity
- A Current Ratio of 2.83 indicates that HEI.A has no problem at all paying its short term obligations.
- HEI.A's Current ratio of 2.83 is in line compared to the rest of the industry. HEI.A outperforms 54.79% of its industry peers.
- HEI.A has a Quick Ratio of 1.28. 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 1.28. This is in the lower half of the industry: HEI.A underperforms 60.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 34.29% over the past year.
- HEI.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.50% yearly.
- Looking at the last year, HEI.A shows a quite strong growth in Revenue. The Revenue has grown by 16.26% in the last year.
- HEI.A shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.21% yearly.
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
3.2 Future
- HEI.A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.60% yearly.
- 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 Y13.62%
EPS Next 2Y13.09%
EPS Next 3Y13.52%
EPS Next 5Y18.6%
Revenue Next Year11.72%
Revenue Next 2Y9.93%
Revenue Next 3Y9.05%
Revenue Next 5Y10.46%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- Based on the Price/Earnings ratio of 52.74, 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, HEI.A is valued quite expensively.
- With a Price/Forward Earnings ratio of 46.37, HEI.A can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as HEI.A.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. HEI.A is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.74 | ||
| Fwd PE | 46.37 |
4.2 Price Multiples
- HEI.A's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI.A indicates a somewhat cheap valuation: HEI.A is cheaper than 76.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.85 | ||
| EV/EBITDA | 31.16 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of HEI.A may justify a higher PE ratio.
- HEI.A's earnings are expected to grow with 13.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.87
PEG (5Y)3.2
EPS Next 2Y13.09%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
- HEI.A has a yearly dividend return of 0.07%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.34, HEI.A pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.07, HEI.A pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
- The dividend of HEI.A is nicely growing with an annual growth rate of 7.53%!
- 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)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 4.63% of the earnings are spent on dividend by HEI.A. This is a low number and sustainable payout ratio.
- The dividend of HEI.A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.63%
EPS Next 2Y13.09%
EPS Next 3Y13.52%
HEICO CORP-CLASS A / HEI.A FAQ
Can you provide the ChartMill fundamental rating for HEICO CORP-CLASS A?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.A.
What is the valuation status of HEICO CORP-CLASS A (HEI.A) stock?
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 earnings growth outlook for HEICO CORP-CLASS A?
The Earnings per Share (EPS) of HEICO CORP-CLASS A (HEI.A) is expected to grow by 13.62% in the next year.
Can you provide the dividend sustainability for HEI.A stock?
The dividend rating of HEICO CORP-CLASS A (HEI.A) is 6 / 10 and the dividend payout ratio is 4.63%.