HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
345.56 USD
+3.94 (+1.15%)
Taking everything into account, HEI scores 5 out of 10 in our fundamental rating. HEI was compared to 71 industry peers in the Aerospace & Defense industry. While HEI has a great profitability rating, there are some minor concerns on its financial health. HEI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
HEI had positive earnings in 4 of the past 5 years.
HEI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HEI's Return On Assets of 7.52% is amongst the best of the industry. HEI outperforms 81.69% of its industry peers.
HEI's Return On Equity of 15.50% is amongst the best of the industry. HEI outperforms 80.28% of its industry peers.
HEI has a better Return On Invested Capital (9.98%) than 83.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 8.63%.
The last Return On Invested Capital (9.98%) for HEI is above the 3 year average (9.51%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 14.96%. This is amongst the best in the industry. HEI outperforms 92.96% of its industry peers.
HEI's Profit Margin has declined in the last couple of years.
HEI has a better Operating Margin (22.38%) than 92.96% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
HEI's Gross Margin of 39.51% is fine compared to the rest of the industry. HEI outperforms 78.87% of its industry peers.
HEI'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
HEI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HEI 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 has an Altman-Z score of 8.18. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
HEI has a better Altman-Z score (8.18) than 77.46% of its industry peers.
The Debt to FCF ratio of HEI is 3.13, which is a good value as it means it would take HEI, 3.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.13, HEI belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that HEI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, HEI is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 8.18 |
ROIC/WACC0.98
WACC10.13%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI has no problem at all paying its short term obligations.
HEI's Current ratio of 3.35 is fine compared to the rest of the industry. HEI outperforms 64.79% of its industry peers.
A Quick Ratio of 1.51 indicates that HEI should not have too much problems paying its short term obligations.
HEI has a Quick ratio of 1.51. This is comparable to the rest of the industry: HEI outperforms 53.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.29%, which is quite impressive.
The Earnings Per Share has been growing by 16.50% on average over the past years. This is quite good.
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.
HEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.63% yearly.
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
Based on the Price/Earnings ratio of 70.38, 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.
The average S&P500 Price/Earnings ratio is at 26.87. HEI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 63.10, the valuation of HEI can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, HEI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.38 | ||
| Fwd PE | 63.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HEI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI indicates a somewhat cheap valuation: HEI is cheaper than 60.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.48 | ||
| EV/EBITDA | 43.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEI does not grow enough to justify the current Price/Earnings ratio.
HEI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.16
PEG (5Y)4.26
EPS Next 2Y12.63%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.07%, HEI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.39, HEI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.07, HEI pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
On average, the dividend of HEI grows each year by 8.47%, which is quite nice.
HEI has paid a dividend for at least 10 years, which is 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)8.47%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
4.98% 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.
DP4.98%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
NYSE:HEI (1/6/2026, 1:48:03 PM)
345.56
+3.94 (+1.15%)
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 Change3.5%
Market Cap48.11B
Revenue(TTM)N/A
Net Income(TTM)641.78M
Analysts78.33
Price Target365.75 (5.84%)
Short Float %5.27%
Short Ratio5.89
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)2.66%
PT rev (3m)1.37%
EPS NQ rev (1m)3.62%
EPS NQ rev (3m)4.39%
EPS NY rev (1m)0.38%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.38 | ||
| Fwd PE | 63.1 | ||
| P/S | 11.22 | ||
| P/FCF | 61.48 | ||
| P/OCF | 56.96 | ||
| P/B | 11.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.27 |
EPS(TTM)4.91
EY1.42%
EPS(NY)5.48
Fwd EY1.58%
FCF(TTM)5.62
FCFY1.63%
OCF(TTM)6.07
OCFY1.76%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)6.16
PEG (5Y)4.26
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 | 8.18 |
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 / HEI FAQ
What is the ChartMill fundamental rating of HEICO CORP (HEI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HEI.
Can you provide the valuation status for HEICO CORP?
ChartMill assigns a valuation rating of 2 / 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 7 / 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.