HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - NYSE:HEI.A - US4228062083 - Common Stock
252.53 USD
+0.51 (+0.2%)
252.53 USD
0 (0%)
HEI.A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. While HEI.A has a great profitability rating, there are some minor concerns on its financial health. HEI.A shows excellent growth, but is valued quite expensive already. This makes HEI.A very considerable for growth 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.
In the past 5 years HEI.A always reported a positive cash flow from operatings.
1.2 Ratios
HEI.A has a Return On Assets of 7.52%. This is amongst the best in the industry. HEI.A outperforms 84.06% of its industry peers.
With an excellent Return On Equity value of 15.50%, HEI.A belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
HEI.A's Return On Invested Capital of 9.98% is amongst the best of the industry. HEI.A outperforms 85.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HEI.A is in line with the industry average of 8.29%.
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 94.20% of its industry peers.
In the last couple of years the Profit Margin of HEI.A has declined.
Looking at the Operating Margin, with a value of 22.38%, HEI.A belongs to the top of the industry, outperforming 94.20% 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 has a Gross Margin of 39.51%. This is amongst the best in the industry. HEI.A outperforms 81.16% 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.
Compared to 1 year ago, HEI.A has more shares outstanding
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 6.48. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HEI.A (6.48) is better than 71.01% of its industry peers.
The Debt to FCF ratio of HEI.A is 3.13, which is a good value as it means it would take HEI.A, 3.13 years of fcf income to pay off all of its debts.
HEI.A's Debt to FCF ratio of 3.13 is amongst the best of the industry. HEI.A outperforms 88.41% of its industry peers.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.48 |
ROIC/WACC1.03
WACC9.65%
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 72.46% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.02% over the past year.
HEI.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.90% yearly.
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
HEI.A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
EPS Next Y31.58%
EPS Next 2Y21.52%
EPS Next 3Y18.59%
EPS Next 5Y21.94%
Revenue Next Year13.54%
Revenue Next 2Y11.7%
Revenue Next 3Y10.2%
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.
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 55.26, 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.
Compared to an average S&P500 Price/Earnings ratio of 27.41, HEI.A is valued quite expensively.
Based on the Price/Forward Earnings ratio of 46.72, 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 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.26 | ||
| Fwd PE | 46.72 |
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 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.93 | ||
| EV/EBITDA | 32.42 |
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.
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 18.59% in the coming years.
PEG (NY)1.75
PEG (5Y)6.21
EPS Next 2Y21.52%
EPS Next 3Y18.59%
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 1.46, 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 2.38.
| 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
HEI.A pays out 4.98% 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.
DP4.98%
EPS Next 2Y21.52%
EPS Next 3Y18.59%
252.53
+0.51 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.59%
Ins Owners22.66%
Ins Owner ChangeN/A
Market Cap35.15B
Analysts78.4
Price Target281.98 (11.66%)
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)10.06%
PT rev (3m)18.31%
EPS NQ rev (1m)4.29%
EPS NQ rev (3m)5.06%
EPS NY rev (1m)3.52%
EPS NY rev (3m)7.22%
Revenue NQ rev (1m)2.69%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.26 | ||
| Fwd PE | 46.72 | ||
| P/S | 8.2 | ||
| P/FCF | 44.93 | ||
| P/OCF | 41.62 | ||
| P/B | 8.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 32.42 |
EPS(TTM)4.57
EY1.81%
EPS(NY)5.4
Fwd EY2.14%
FCF(TTM)5.62
FCFY2.23%
OCF(TTM)6.07
OCFY2.4%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)1.75
PEG (5Y)6.21
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%
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 Turnover0.5
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 | 6.48 |
F-Score8
WACC9.65%
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 Y31.58%
EPS Next 2Y21.52%
EPS Next 3Y18.59%
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 2Y11.7%
Revenue Next 3Y10.2%
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%