HEICO CORP (HEI) Stock Fundamental Analysis
NYSE:HEI - New York Stock Exchange, Inc. - US4228061093 - Common Stock - Currency: USD
Overall HEI gets a fundamental rating of 7 out of 10. We evaluated HEI against 68 industry peers in the Aerospace & Defense industry. HEI gets an excellent profitability rating and is at the same time showing great financial health properties. HEI shows excellent growth, but is valued quite expensive already. With these ratings, HEI could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year HEI was profitable.
In the past year HEI had a positive cash flow from operations.
HEI had positive earnings in each of the past 5 years.
HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEI's Return On Assets of 7.43% is amongst the best of the industry. HEI outperforms 80.88% of its industry peers.
HEI has a better Return On Equity (15.15%) than 80.88% of its industry peers.
The Return On Invested Capital of HEI (10.04%) is better than 83.82% of its industry peers.
HEI had an Average Return On Invested Capital over the past 3 years of 9.51%. This is in line with the industry average of 8.47%.
The last Return On Invested Capital (10.04%) for HEI 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 belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
In the last couple of years the Profit Margin of HEI has declined.
HEI's Operating Margin of 22.20% is amongst the best of the industry. HEI outperforms 92.65% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
With an excellent Gross Margin value of 39.35%, HEI belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
HEI's Gross Margin has been stable in the last couple of years.
| 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 is still creating some value.
Compared to 1 year ago, HEI has more shares outstanding
The number of shares outstanding for HEI has been increased compared to 5 years ago.
HEI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.28 indicates that HEI is not in any danger for bankruptcy at the moment.
HEI has a Altman-Z score of 8.28. This is amongst the best in the industry. HEI outperforms 80.88% of its industry peers.
The Debt to FCF ratio of HEI is 2.99, which is a good value as it means it would take HEI, 2.99 years of fcf income to pay off all of its debts.
HEI's Debt to FCF ratio of 2.99 is amongst the best of the industry. HEI outperforms 86.76% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that HEI is somewhat dependend on debt financing.
HEI has a Debt to Equity ratio (0.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 8.28 |
ROIC/WACC1.04
WACC9.66%
2.3 Liquidity
HEI has a Current Ratio of 3.43. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
HEI's Current ratio of 3.43 is fine compared to the rest of the industry. HEI outperforms 72.06% of its industry peers.
HEI has a Quick Ratio of 1.56. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.56, HEI is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
Measured over the past years, HEI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.90% on average per year.
HEI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.74%.
Measured over the past years, HEI shows a quite strong growth in Revenue. The Revenue has been growing by 13.42% on average per year.
EPS 1Y (TTM)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
3.2 Future
The Earnings Per Share is expected to grow by 21.41% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y26.47%
EPS Next 2Y19.86%
EPS Next 3Y17.58%
EPS Next 5Y21.41%
Revenue Next Year11.87%
Revenue Next 2Y10.04%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
HEI is valuated quite expensively with a Price/Earnings ratio of 75.96.
The rest of the industry has a similar Price/Earnings ratio as HEI.
HEI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.82.
HEI is valuated quite expensively with a Price/Forward Earnings ratio of 61.83.
HEI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HEI to the average of the S&P500 Index (36.21), we can say HEI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.96 | ||
| Fwd PE | 61.83 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI indicates a somewhat cheap valuation: HEI is cheaper than 66.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.34 | ||
| EV/EBITDA | 42.9 |
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 may justify a higher PE ratio.
A more expensive valuation may be justified as HEI's earnings are expected to grow with 17.58% in the coming years.
PEG (NY)2.87
PEG (5Y)8.54
EPS Next 2Y19.86%
EPS Next 3Y17.58%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.07%, which is pretty low.
Compared to an average industry Dividend Yield of 1.16, HEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, HEI'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 is nicely growing with an annual growth rate of 8.45%!
HEI has been paying a dividend for at least 10 years, so it has a reliable track record.
HEI 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
5.08% of the earnings are spent on dividend by HEI. This is a low number and sustainable payout ratio.
HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5.08%
EPS Next 2Y19.86%
EPS Next 3Y17.58%
325.09
-1.71 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners71.77%
Inst Owner Change-1.17%
Ins Owners22.67%
Ins Owner Change-11.5%
Market Cap45.22B
Analysts77.5
Price Target326.16 (0.33%)
Short Float %5.46%
Short Ratio4.98
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)5%
PT rev (3m)18.28%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)0.38%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.96 | ||
| Fwd PE | 61.83 | ||
| P/S | 10.94 | ||
| P/FCF | 59.34 | ||
| P/OCF | 54.66 | ||
| P/B | 11.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.9 |
EPS(TTM)4.28
EY1.32%
EPS(NY)5.26
Fwd EY1.62%
FCF(TTM)5.48
FCFY1.69%
OCF(TTM)5.95
OCFY1.83%
SpS29.72
BVpS28.52
TBVpS-7.16
PEG (NY)2.87
PEG (5Y)8.54
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 | 8.28 |
F-Score8
WACC9.66%
ROIC/WACC1.04
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)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
EPS Next Y26.47%
EPS Next 2Y19.86%
EPS Next 3Y17.58%
EPS Next 5Y21.41%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
Revenue Next Year11.87%
Revenue Next 2Y10.04%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year37.56%
EBIT Next 3Y17.14%
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%