HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
238.75 USD
-6.89 (-2.8%)
238.75 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HEI.A. HEI.A was compared to 72 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 expensive, but it does show an excellent growth. 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.
Each year in the past 5 years HEI.A had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.52%, HEI.A belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With an excellent Return On Equity value of 15.50%, HEI.A belongs to the best of the industry, outperforming 81.94% 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 84.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HEI.A is in line with the industry average of 8.58%.
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
HEI.A has a Profit Margin of 14.96%. This is amongst the best in the industry. HEI.A outperforms 94.44% of its industry peers.
HEI.A's Profit Margin has declined in the last couple of years.
HEI.A has a Operating Margin of 22.38%. This is amongst the best in the industry. HEI.A outperforms 94.44% 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 (39.51%) is better than 79.17% 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
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 6.36. 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 (6.36) than 69.44% 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.
The Debt to FCF ratio of HEI.A (3.13) is better than 86.11% 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.
HEI.A has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: HEI.A outperforms 40.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.36 |
ROIC/WACC1.02
WACC9.74%
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 Current ratio of 3.35. This is in the better half of the industry: HEI.A outperforms 69.44% 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's Quick ratio of 1.51 is in line compared to the rest of the industry. HEI.A outperforms 58.33% of its industry peers.
| 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.
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.
HEI.A shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.46%.
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
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 Y32.72%
EPS Next 2Y22.02%
EPS Next 3Y18.91%
EPS Next 5Y21.94%
Revenue Next Year13.54%
Revenue Next 2Y11.68%
Revenue Next 3Y10.16%
Revenue Next 5Y10.46%
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.
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
The Price/Earnings ratio is 52.24, which means the current valuation is very expensive for HEI.A.
HEI.A's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.28, HEI.A is valued quite expensively.
Based on the Price/Forward Earnings ratio of 43.81, the valuation of HEI.A can be described as expensive.
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 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.24 | ||
| Fwd PE | 43.81 |
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.
Based on the Price/Free Cash Flow ratio, HEI.A is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.48 | ||
| EV/EBITDA | 31.64 |
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 18.91% in the coming years.
PEG (NY)1.6
PEG (5Y)5.87
EPS Next 2Y22.02%
EPS Next 3Y18.91%
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 1.12, HEI.A pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.08, HEI.A pays less dividend than the S&P500 average, which is at 2.31.
| 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 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)8.47%
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 2Y22.02%
EPS Next 3Y18.91%
238.75
-6.89 (-2.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.05%
Inst Owner Change-6.39%
Ins Owners15.53%
Ins Owner ChangeN/A
Market Cap33.24B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts78.33
Price Target277.71 (16.32%)
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)0.47%
PT rev (3m)7.9%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)0.83%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.24 | ||
| Fwd PE | 43.81 | ||
| P/S | 7.75 | ||
| P/FCF | 42.48 | ||
| P/OCF | 39.35 | ||
| P/B | 8.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.64 |
EPS(TTM)4.57
EY1.91%
EPS(NY)5.45
Fwd EY2.28%
FCF(TTM)5.62
FCFY2.35%
OCF(TTM)6.07
OCFY2.54%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)1.6
PEG (5Y)5.87
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 | 6.36 |
F-Score8
WACC9.74%
ROIC/WACC1.02
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 Y32.72%
EPS Next 2Y22.02%
EPS Next 3Y18.91%
EPS Next 5Y21.94%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.54%
Revenue Next 2Y11.68%
Revenue Next 3Y10.16%
Revenue Next 5Y10.46%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.21%
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 32.72% in the next year.