HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
NYSE:HEI.A - New York Stock Exchange, Inc. - US4228062083 - Common Stock - Currency: USD
Taking everything into account, HEI.A scores 6 out of 10 in our fundamental rating. HEI.A was compared to 64 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 expensive, but it does show an excellent growth. These ratings could make HEI.A a good candidate 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.
In the past 5 years HEI.A has always been profitable.
Each year in the past 5 years HEI.A had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.19%, HEI.A is doing good in the industry, outperforming 79.69% of the companies in the same industry.
HEI.A has a better Return On Equity (15.14%) than 82.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.82%, HEI.A belongs to the top of the industry, outperforming 82.81% 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 7.94%.
The 3 year average ROIC (9.51%) for HEI.A is below the current ROIC(9.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 15.14% | ||
| ROIC | 9.82% |
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
The Profit Margin of HEI.A (14.21%) is better than 90.63% of its industry peers.
HEI.A's Profit Margin has declined in the last couple of years.
HEI.A has a better Operating Margin (22.01%) than 95.31% of its industry peers.
HEI.A's Operating Margin has been stable in the last couple of years.
HEI.A's Gross Margin of 39.10% is fine compared to the rest of the industry. HEI.A outperforms 78.13% of its industry peers.
HEI.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.01% | ||
| PM (TTM) | 14.21% | ||
| GM | 39.1% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HEI.A is destroying 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
HEI.A has a better debt/assets ratio than last year.
2.2 Solvency
HEI.A has an Altman-Z score of 5.94. 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 5.94. This is in the better half of the industry: HEI.A outperforms 75.00% of its industry peers.
HEI.A has a debt to FCF ratio of 3.35. This is a good value and a sign of high solvency as HEI.A would need 3.35 years to pay back of all of its debts.
The Debt to FCF ratio of HEI.A (3.35) is better than 87.50% of its industry peers.
HEI.A has a Debt/Equity ratio of 0.63. This is a neutral value indicating HEI.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, HEI.A is in line with its industry, outperforming 45.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.35 | ||
| Altman-Z | 5.94 |
ROIC/WACC0.97
WACC10.15%
2.3 Liquidity
A Current Ratio of 3.40 indicates that HEI.A has no problem at all paying its short term obligations.
HEI.A has a Current ratio of 3.40. This is in the better half of the industry: HEI.A outperforms 76.56% of its industry peers.
A Quick Ratio of 1.43 indicates that HEI.A should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.43, HEI.A is in line with its industry, outperforming 54.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 1.43 |
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 30.74%, which is quite impressive.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
HEI.A shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.06%.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
EPS 1Y (TTM)30.74%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%46.34%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.93%
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 16.84% yearly.
Based on estimates for the next years, HEI.A will show a quite strong growth in Revenue. The Revenue will grow by 8.58% on average per year.
EPS Next Y22.72%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
EPS Next 5Y16.84%
Revenue Next Year9.87%
Revenue Next 2Y8.57%
Revenue Next 3Y7.96%
Revenue Next 5Y8.58%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 52.23, which means the current valuation is very expensive for HEI.A.
HEI.A's Price/Earnings is on the same level as the industry average.
HEI.A is valuated expensively when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 42.05, HEI.A can be considered very expensive at the moment.
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's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.23 | ||
| Fwd PE | 42.05 |
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 70.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.79 | ||
| EV/EBITDA | 30.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEI.A does not grow enough to justify the current Price/Earnings ratio.
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 15.90% in the coming years.
PEG (NY)2.3
PEG (5Y)5.87
EPS Next 2Y17.09%
EPS Next 3Y15.9%
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 1.34, 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 2.36.
| 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.
HEI.A has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.45%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI.A pays out 5.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of HEI.A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5.38%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
NYSE:HEI.A (5/22/2025, 2:42:08 PM)
211.01
-1.54 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.06%
Inst Owner Change1.33%
Ins Owners22.7%
Ins Owner ChangeN/A
Market Cap29.32B
Analysts75.2
Price Target220.44 (4.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.63%
Min EPS beat(2)-0.23%
Max EPS beat(2)25.49%
EPS beat(4)3
Avg EPS beat(4)9.32%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)7.56%
EPS beat(12)9
Avg EPS beat(12)3.97%
EPS beat(16)13
Avg EPS beat(16)3.93%
Revenue beat(2)1
Avg Revenue beat(2)0.7%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)4.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)8
Avg Revenue beat(12)1.07%
Revenue beat(16)9
Avg Revenue beat(16)0.69%
PT rev (1m)-1.86%
PT rev (3m)2.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)4.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.23 | ||
| Fwd PE | 42.05 | ||
| P/S | 7.35 | ||
| P/FCF | 41.79 | ||
| P/OCF | 38.39 | ||
| P/B | 7.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.02 |
EPS(TTM)4.04
EY1.91%
EPS(NY)5.02
Fwd EY2.38%
FCF(TTM)5.05
FCFY2.39%
OCF(TTM)5.5
OCFY2.6%
SpS28.73
BVpS26.96
TBVpS-8.58
PEG (NY)2.3
PEG (5Y)5.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 15.14% | ||
| ROCE | 12.08% | ||
| ROIC | 9.82% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 32.92% | ||
| OM | 22.01% | ||
| PM (TTM) | 14.21% | ||
| GM | 39.1% | ||
| FCFM | 17.58% |
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-Score9
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.35 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 34.94% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.28% | ||
| Profit Quality | 123.65% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 5.94 |
F-Score9
WACC10.15%
ROIC/WACC0.97
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)30.74%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%46.34%
EPS Next Y22.72%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
EPS Next 5Y16.84%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.93%
Revenue Next Year9.87%
Revenue Next 2Y8.57%
Revenue Next 3Y7.96%
Revenue Next 5Y8.58%
EBIT growth 1Y29.93%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year37.68%
EBIT Next 3Y17.11%
EBIT Next 5Y16.07%
FCF growth 1Y62.2%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y63.68%
OCF growth 3Y14.83%
OCF growth 5Y8.98%