HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - NYSE:HEI.A - US4228062083 - Common Stock
241.72 USD
-0.65 (-0.27%)
241.72 USD
0 (0%)
Taking everything into account, HEI.A scores 7 out of 10 in our fundamental rating. HEI.A was compared to 71 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. These ratings would make HEI.A suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year HEI.A was profitable.
HEI.A had a positive operating cash flow in the past year.
Each year in the past 5 years HEI.A has been profitable.
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 83.10% of its industry peers.
With an excellent Return On Equity value of 15.50%, HEI.A belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.98%, HEI.A belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
HEI.A had an Average Return On Invested Capital over the past 3 years of 9.51%. This is in line with the industry average of 8.46%.
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
Looking at the Profit Margin, with a value of 14.96%, HEI.A belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
HEI.A's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.38%, HEI.A belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
In the last couple of years the Operating Margin of HEI.A has remained more or less at the same level.
HEI.A's Gross Margin of 39.51% is amongst the best of the industry. HEI.A outperforms 80.28% 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
HEI.A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HEI.A has been increased compared to 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
HEI.A has an Altman-Z score of 6.29. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
HEI.A has a better Altman-Z score (6.29) than 73.24% 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.
With an excellent Debt to FCF ratio value of 3.13, HEI.A belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that HEI.A is somewhat dependend on debt financing.
HEI.A has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.29 |
ROIC/WACC1.03
WACC9.68%
2.3 Liquidity
HEI.A has a Current Ratio of 3.35. This indicates that HEI.A is financially healthy and has no problem in meeting its short term obligations.
HEI.A has a better Current ratio (3.35) than 70.42% 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 (1.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
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 34.02%, which is quite impressive.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
Looking at the last year, HEI.A shows a quite strong growth in Revenue. The Revenue has grown by 13.46% in the last year.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 21.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.46% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 52.89, HEI.A can be considered very expensive at the moment.
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 (25.51), we can say HEI.A is valued expensively.
HEI.A is valuated quite expensively with a Price/Forward Earnings ratio of 44.76.
HEI.A's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.98. HEI.A is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.89 | ||
| Fwd PE | 44.76 |
4.2 Price Multiples
HEI.A's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HEI.A is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.01 | ||
| EV/EBITDA | 31.25 |
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.
A more expensive valuation may be justified as HEI.A's earnings are expected to grow with 18.44% in the coming years.
PEG (NY)1.67
PEG (5Y)5.94
EPS Next 2Y21.47%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, HEI.A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.37, HEI.A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, HEI.A's dividend is way lower than the S&P500 average.
| 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.
As HEI.A did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.47%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
4.98% 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.
DP4.98%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
241.72
-0.65 (-0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change-6.41%
Ins Owners22.66%
Ins Owner ChangeN/A
Market Cap33.65B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target276.12 (14.23%)
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)-2.72%
PT rev (3m)7.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.89 | ||
| Fwd PE | 44.76 | ||
| P/S | 7.85 | ||
| P/FCF | 43.01 | ||
| P/OCF | 39.84 | ||
| P/B | 8.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.25 |
EPS(TTM)4.57
EY1.89%
EPS(NY)5.4
Fwd EY2.23%
FCF(TTM)5.62
FCFY2.33%
OCF(TTM)6.07
OCFY2.51%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)1.67
PEG (5Y)5.94
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 | 6.29 |
F-Score8
WACC9.68%
ROIC/WACC1.03
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.