HEICO CORP (HEI) Stock Fundamental Analysis
NYSE:HEI - US4228061093 - Common Stock
305.34 USD
-4.25 (-1.37%)
310.2 USD
+4.86 (+1.59%)
We assign a fundamental rating of 7 out of 10 to HEI. HEI was compared to 68 industry peers in the Aerospace & Defense industry. HEI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HEI is valued quite expensively, but it does show have an excellent growth rating. With these ratings, HEI could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
HEI had positive earnings in the past year.
In the past year HEI had a positive cash flow from operations.
Each year in the past 5 years HEI has been profitable.
Each year in the past 5 years HEI had a positive operating cash flow.
1.2 Ratios
HEI's Return On Assets of 7.43% is amongst the best of the industry. HEI outperforms 82.35% of its industry peers.
HEI's Return On Equity of 15.15% is amongst the best of the industry. HEI outperforms 82.35% of its industry peers.
HEI has a Return On Invested Capital of 10.04%. This is amongst the best in the industry. HEI outperforms 85.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HEI is in line with the industry average of 8.61%.
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
The Profit Margin of HEI (14.54%) is better than 92.65% of its industry peers.
In the last couple of years the Profit Margin of HEI has declined.
HEI has a better Operating Margin (22.20%) than 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.
Looking at the Gross Margin, with a value of 39.35%, HEI belongs to the top 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.
HEI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HEI has been increased compared to 5 years ago.
Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
HEI has an Altman-Z score of 7.97. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
HEI has a better Altman-Z score (7.97) than 77.94% of its industry peers.
HEI has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as HEI would need 2.99 years to pay back of all of its debts.
HEI has a better Debt to FCF ratio (2.99) than 89.71% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that HEI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, HEI is in line with its industry, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 7.97 |
ROIC/WACC1.01
WACC9.9%
2.3 Liquidity
A Current Ratio of 3.43 indicates that HEI has no problem at all paying its short term obligations.
HEI has a Current ratio of 3.43. This is in the better half of the industry: HEI outperforms 73.53% 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 60.29% 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.
HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.90% yearly.
The Revenue has grown by 17.74% in the past year. This is quite good.
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
Based on estimates for the next years, HEI will show a quite strong growth in Revenue. The Revenue will grow by 10.16% on average per year.
EPS Next Y27.11%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
EPS Next 5Y21.41%
Revenue Next Year11.97%
Revenue Next 2Y10.12%
Revenue Next 3Y9.17%
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
Based on the Price/Earnings ratio of 71.34, the valuation of HEI can be described as expensive.
HEI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of HEI to the average of the S&P500 Index (27.03), we can say HEI is valued expensively.
The Price/Forward Earnings ratio is 57.99, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
HEI is valuated expensively when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.34 | ||
| Fwd PE | 57.99 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HEI is valued a bit cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.73 | ||
| EV/EBITDA | 40.94 |
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 17.60% in the coming years.
PEG (NY)2.63
PEG (5Y)8.02
EPS Next 2Y19.94%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.08%, which is pretty low.
Compared to an average industry Dividend Yield of 1.18, HEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
On average, the dividend of HEI grows each year by 8.45%, which is quite nice.
HEI has been paying a dividend for at least 10 years, so it has a reliable track record.
As HEI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y19.94%
EPS Next 3Y17.6%
305.34
-4.25 (-1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change-0.79%
Ins Owners22.67%
Ins Owner Change-11.5%
Market Cap42.47B
Analysts78.4
Price Target329.03 (7.76%)
Short Float %5.69%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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)0.88%
PT rev (3m)19.33%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)3.08%
EPS NY rev (1m)0.5%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.34 | ||
| Fwd PE | 57.99 | ||
| P/S | 10.27 | ||
| P/FCF | 55.73 | ||
| P/OCF | 51.34 | ||
| P/B | 10.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.94 |
EPS(TTM)4.28
EY1.4%
EPS(NY)5.27
Fwd EY1.72%
FCF(TTM)5.48
FCFY1.79%
OCF(TTM)5.95
OCFY1.95%
SpS29.72
BVpS28.52
TBVpS-7.16
PEG (NY)2.63
PEG (5Y)8.02
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 | 7.97 |
F-Score8
WACC9.9%
ROIC/WACC1.01
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 Y27.11%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
EPS Next 5Y21.41%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
Revenue Next Year11.97%
Revenue Next 2Y10.12%
Revenue Next 3Y9.17%
Revenue Next 5Y10.16%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year41.37%
EBIT Next 3Y18.93%
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%