HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
269.67 USD
+3.65 (+1.37%)
270.17 USD
+0.5 (+0.19%)
HEI.A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, HEI.A is valued expensive at the moment.
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 4 of the past 5 years.
Of the past 5 years HEI.A 4 years 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 83.10% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.50%, HEI.A belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
HEI.A has a Return On Invested Capital of 9.98%. This is amongst the best in the industry. HEI.A outperforms 84.51% of its industry peers.
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 8.63%.
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 better Profit Margin (14.96%) than 94.37% of its industry peers.
In the last couple of years the Profit Margin of HEI.A has declined.
HEI.A has a Operating Margin of 22.38%. This is amongst the best in the industry. HEI.A outperforms 94.37% 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.
With an excellent Gross Margin value of 39.51%, HEI.A belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
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 | 22.38% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HEI.A is destroying value.
HEI.A has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HEI.A has an Altman-Z score of 6.81. 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 (6.81) than 67.61% 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 85.92% of the companies in the same industry.
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's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. HEI.A outperforms 40.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.81 |
ROIC/WACC0.98
WACC10.13%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI.A has no problem at all paying its short term obligations.
The Current ratio of HEI.A (3.35) is better than 66.20% 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.
With a Quick ratio value of 1.51, HEI.A perfoms like the industry average, outperforming 54.93% of the companies in the same 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 34.29%, 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 16.50% on average per year.
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
3.2 Future
The Earnings Per Share is expected to grow by 19.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.63% on average over the next years. This is quite good.
EPS Next Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y19.03%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y9.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 54.92, HEI.A can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as HEI.A.
The average S&P500 Price/Earnings ratio is at 27.17. HEI.A is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 49.24 indicates a quite expensive valuation of HEI.A.
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 23.79. HEI.A is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.92 | ||
| Fwd PE | 49.24 |
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.
HEI.A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HEI.A is cheaper than 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.98 | ||
| EV/EBITDA | 34.55 |
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.
PEG (NY)4.81
PEG (5Y)3.33
EPS Next 2Y12.63%
EPS Next 3Y11.48%
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 0.39, 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 1.94.
| 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 8.47%!
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)8.47%
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.
HEI.A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.98%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
269.67
+3.65 (+1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73%
Inst Owner Change0%
Ins Owners15.5%
Ins Owner ChangeN/A
Market Cap37.54B
Revenue(TTM)N/A
Net Income(TTM)641.78M
Analysts78.33
Price Target286.32 (6.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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)2.87%
PT rev (3m)1.54%
EPS NQ rev (1m)3.62%
EPS NQ rev (3m)3.98%
EPS NY rev (1m)0.38%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.92 | ||
| Fwd PE | 49.24 | ||
| P/S | 8.75 | ||
| P/FCF | 47.98 | ||
| P/OCF | 44.45 | ||
| P/B | 9.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.55 |
EPS(TTM)4.91
EY1.82%
EPS(NY)5.48
Fwd EY2.03%
FCF(TTM)5.62
FCFY2.08%
OCF(TTM)6.07
OCFY2.25%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)4.81
PEG (5Y)3.33
Graham Number57.33
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 | 6.81 |
F-Score8
WACC10.13%
ROIC/WACC0.98
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)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
EPS Next Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y19.03%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y9.63%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year45.41%
EBIT Next 3Y21.08%
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
Can you provide the ChartMill fundamental rating for HEICO CORP-CLASS A?
ChartMill assigns a fundamental rating of 6 / 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 11.42% 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 4.98%.