HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
358.04 USD
+5.75 (+1.63%)
358.04 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HEI. HEI was compared to 71 industry peers in the Aerospace & Defense industry. While HEI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HEI is valued quite expensively, but it does show have an excellent growth rating. These ratings would make HEI suitable for growth 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.
- In the past 5 years HEI has always been profitable.
- In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
- HEI has a better Return On Assets (8.12%) than 84.51% of its industry peers.
- With an excellent Return On Equity value of 16.04%, HEI belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 11.03%, HEI belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HEI is in line with the industry average of 8.54%.
- The last Return On Invested Capital (11.03%) for HEI is above the 3 year average (9.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROIC | 11.03% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
1.3 Margins
- HEI's Profit Margin of 15.39% is amongst the best of the industry. HEI outperforms 92.96% of its industry peers.
- In the last couple of years the Profit Margin of HEI has declined.
- HEI has a Operating Margin of 22.72%. This is amongst the best in the industry. HEI outperforms 91.55% of its industry peers.
- In the last couple of years the Operating Margin of HEI has grown nicely.
- HEI's Gross Margin of 39.83% is fine compared to the rest of the industry. HEI outperforms 78.87% of its industry peers.
- In the last couple of years the Gross Margin of HEI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% |
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
2. Health
2.1 Basic Checks
- HEI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- HEI has more shares outstanding than it did 1 year ago.
- HEI has more shares outstanding than it did 5 years ago.
- HEI has a better debt/assets ratio than last year.
2.2 Solvency
- HEI has an Altman-Z score of 8.75. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
- HEI has a Altman-Z score of 8.75. This is in the better half of the industry: HEI outperforms 76.06% of its industry peers.
- HEI has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as HEI would need 2.52 years to pay back of all of its debts.
- The Debt to FCF ratio of HEI (2.52) is better than 87.32% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that HEI is somewhat dependend on debt financing.
- The Debt to Equity ratio of HEI (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 8.75 |
ROIC/WACC1.17
WACC9.43%
2.3 Liquidity
- HEI has a Current Ratio of 2.83. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.83, HEI is in line with its industry, outperforming 53.52% of the companies in the same industry.
- HEI has a Quick Ratio of 1.28. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of HEI (1.28) is worse than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 34.29% over the past year.
- Measured over the past years, HEI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.50% on average per year.
- Looking at the last year, HEI shows a quite strong growth in Revenue. The Revenue has grown by 16.26% in the last year.
- The Revenue has been growing by 20.21% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
3.2 Future
- The Earnings Per Share is expected to grow by 18.60% on average over the next years. This is quite good.
- The Revenue is expected to grow by 10.50% on average over the next years. This is quite good.
EPS Next Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y18.6%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y10.5%
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 stable.
- 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
- Based on the Price/Earnings ratio of 72.92, the valuation of HEI can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of HEI is on the same level as its industry peers.
- HEI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.33.
- The Price/Forward Earnings ratio is 65.38, which means the current valuation is very expensive for HEI.
- The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.92 | ||
| Fwd PE | 65.38 |
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 63.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.86 | ||
| EV/EBITDA | 41.97 |
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.
PEG (NY)6.39
PEG (5Y)4.42
EPS Next 2Y12.63%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
- HEI has a yearly dividend return of 0.07%, which is pretty low.
- HEI's Dividend Yield is a higher than the industry average which is at 0.37.
- Compared to an average S&P500 Dividend Yield of 1.91, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
- On average, the dividend of HEI grows each year by 7.53%, which is quite nice.
- 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)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 4.63% of the earnings are spent on dividend by HEI. This is a low number and sustainable payout ratio.
- The dividend of HEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.63%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
358.04
+5.75 (+1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)12-22 2025-12-22/amc
Earnings (Next)02-24 2026-02-24
Inst Owners73%
Inst Owner Change0.56%
Ins Owners15.5%
Ins Owner Change3.5%
Market Cap49.84B
Revenue(TTM)4.49B
Net Income(TTM)690.38M
Analysts79.2
Price Target365.75 (2.15%)
Short Float %5.27%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
Yearly Dividend0.23
Dividend Growth(5Y)7.53%
DP4.63%
Div Incr Years7
Div Non Decr Years7
Ex-Date01-05 2026-01-05 (0.12)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.72%
Min EPS beat(2)5.63%
Max EPS beat(2)9.81%
EPS beat(4)4
Avg EPS beat(4)12.08%
Min EPS beat(4)5.63%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.74%
EPS beat(12)10
Avg EPS beat(12)6.64%
EPS beat(16)13
Avg EPS beat(16)4.65%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.03%
Max Revenue beat(2)1.83%
Revenue beat(4)4
Avg Revenue beat(4)2.07%
Min Revenue beat(4)0.03%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)1.21%
Revenue beat(16)11
Avg Revenue beat(16)0.94%
PT rev (1m)3.03%
PT rev (3m)1.37%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.92 | ||
| Fwd PE | 65.38 | ||
| P/S | 11.11 | ||
| P/FCF | 57.86 | ||
| P/OCF | 53.35 | ||
| P/B | 11.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 41.97 |
EPS(TTM)4.91
EY1.37%
EPS(NY)5.48
Fwd EY1.53%
FCF(TTM)6.19
FCFY1.73%
OCF(TTM)6.71
OCFY1.87%
SpS32.22
BVpS30.93
TBVpS-5.95
PEG (NY)6.39
PEG (5Y)4.42
Graham Number58.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROCE | 13.29% | ||
| ROIC | 11.03% | ||
| ROICexc | 11.35% | ||
| ROICexgc | 36.48% | ||
| OM | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% | ||
| FCFM | 19.21% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
ROICexc(3y)9.9%
ROICexc(5y)10.38%
ROICexgc(3y)33.39%
ROICexgc(5y)33.47%
ROCE(3y)11.62%
ROCE(5y)12.13%
ROICexgc growth 3Y-0.02%
ROICexgc growth 5Y1.82%
ROICexc growth 3Y-0.9%
ROICexc growth 5Y1.04%
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 37.17% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 7.9 | ||
| Cash Conversion | 76.89% | ||
| Profit Quality | 124.77% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 8.75 |
F-Score8
WACC9.43%
ROIC/WACC1.17
Cap/Depr(3y)36.14%
Cap/Depr(5y)36.1%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.64%
Profit Quality(3y)114.39%
Profit Quality(5y)120.24%
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 5Y18.6%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y10.5%
EBIT growth 1Y22.48%
EBIT growth 3Y27.05%
EBIT growth 5Y22.02%
EBIT Next Year34.15%
EBIT Next 3Y16.88%
EBIT Next 5Y19.29%
FCF growth 1Y40.27%
FCF growth 3Y25.49%
FCF growth 5Y17.4%
OCF growth 1Y38.95%
OCF growth 3Y25.93%
OCF growth 5Y17.96%
HEICO CORP / HEI FAQ
What is the ChartMill fundamental rating of HEICO CORP (HEI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.
Can you provide the valuation status for HEICO CORP?
ChartMill assigns a valuation rating of 3 / 10 to HEICO CORP (HEI). This can be considered as Overvalued.
Can you provide the profitability details for HEICO CORP?
HEICO CORP (HEI) has a profitability rating of 8 / 10.
Can you provide the financial health for HEI stock?
The financial health rating of HEICO CORP (HEI) is 6 / 10.
What is the earnings growth outlook for HEICO CORP?
The Earnings per Share (EPS) of HEICO CORP (HEI) is expected to grow by 11.42% in the next year.