HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
NYSE:HEI.A - US4228062083 - Common Stock
248.46 USD
+0.12 (+0.05%)
248.46 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HEI.A. HEI.A was compared to 68 industry peers in the Aerospace & Defense industry. HEI.A gets an excellent profitability rating and is at the same time showing great financial health properties. HEI.A is valued quite expensive, but it does show an excellent growth. These ratings would make HEI.A suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HEI.A was profitable.
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 Return On Assets of 7.43%. This is amongst the best in the industry. HEI.A outperforms 83.82% of its industry peers.
HEI.A's Return On Equity of 15.15% is amongst the best of the industry. HEI.A outperforms 83.82% 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 86.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEI.A is in line with the industry average of 8.40%.
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
Looking at the Profit Margin, with a value of 14.54%, HEI.A belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
HEI.A's Profit Margin has declined in the last couple of years.
HEI.A has a better Operating Margin (22.20%) than 94.12% 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.
The Gross Margin of HEI.A (39.35%) is better than 82.35% 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 | 22.2% | ||
| 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 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.
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 6.73. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
HEI.A has a Altman-Z score of 6.73. This is in the better half of the industry: HEI.A outperforms 73.53% of its industry peers.
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.
HEI.A has a better Debt to FCF ratio (2.99) than 91.18% of its industry peers.
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 | 6.73 |
ROIC/WACC1.01
WACC9.96%
2.3 Liquidity
A Current Ratio of 3.43 indicates that HEI.A has no problem at all paying its short term obligations.
The Current ratio of HEI.A (3.43) is better than 75.00% of its industry peers.
HEI.A has a Quick Ratio of 1.56. 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 better Quick ratio (1.56) than 61.76% of its industry peers.
| 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 34.02%, which is quite impressive.
Measured over the past years, HEI.A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.90% on average per year.
The Revenue has grown by 29.97% in the past year. This is a very strong growth!
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)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
Revenue 1Y (TTM)29.97%
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 21.41% on average per year.
HEI.A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
EPS Next Y27.11%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
EPS Next 5Y21.41%
Revenue Next Year11.97%
Revenue Next 2Y10.12%
Revenue Next 3Y9.17%
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
The Price/Earnings ratio is 54.37, which means the current valuation is very expensive for HEI.A.
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 (27.17), we can say HEI.A is valued expensively.
A Price/Forward Earnings ratio of 47.19 indicates a quite expensive valuation of HEI.A.
The rest of the industry has a similar Price/Forward Earnings ratio as HEI.A.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, HEI.A is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.37 | ||
| Fwd PE | 47.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEI.A is on the same level as its industry peers.
70.59% 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 | 45.35 | ||
| EV/EBITDA | 33.2 |
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.
A more expensive valuation may be justified as HEI.A's earnings are expected to grow with 17.60% in the coming years.
PEG (NY)2.01
PEG (5Y)6.11
EPS Next 2Y19.94%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
HEI.A has a yearly dividend return of 0.07%, which is pretty low.
HEI.A's Dividend Yield is a higher than the industry average which is at 1.18.
Compared to an average S&P500 Dividend Yield of 2.34, HEI.A's dividend is way lower than the S&P500 average.
| 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 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
HEI.A pays out 5.08% 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.
DP5.08%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
248.46
+0.12 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change0.59%
Ins Owners22.67%
Ins Owner ChangeN/A
Market Cap34.56B
Analysts78.4
Price Target257.37 (3.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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)0.35%
PT rev (3m)16.75%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)3.08%
EPS NY rev (1m)0.5%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.37 | ||
| Fwd PE | 47.19 | ||
| P/S | 8.36 | ||
| P/FCF | 45.35 | ||
| P/OCF | 41.78 | ||
| P/B | 8.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.2 |
EPS(TTM)4.57
EY1.84%
EPS(NY)5.27
Fwd EY2.12%
FCF(TTM)5.48
FCFY2.21%
OCF(TTM)5.95
OCFY2.39%
SpS29.72
BVpS28.52
TBVpS-7.16
PEG (NY)2.01
PEG (5Y)6.11
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 | 6.73 |
F-Score8
WACC9.96%
ROIC/WACC1.01
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)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
EPS Next Y27.11%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
EPS Next 5Y21.41%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year11.97%
Revenue Next 2Y10.12%
Revenue Next 3Y9.17%
Revenue Next 5Y10.16%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year41.37%
EBIT Next 3Y18.93%
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%