HEICO CORP (HEI) Stock Fundamental Analysis
NYSE:HEI - New York Stock Exchange, Inc. - US4228061093 - Common Stock - Currency: USD
Taking everything into account, HEI scores 6 out of 10 in our fundamental rating. HEI was compared to 64 industry peers in the Aerospace & Defense industry. HEI scores excellent on profitability, but 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.
HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HEI (7.19%) is better than 78.13% of its industry peers.
HEI has a Return On Equity of 15.14%. This is amongst the best in the industry. HEI outperforms 81.25% of its industry peers.
The Return On Invested Capital of HEI (9.82%) is better than 81.25% 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 7.93%.
The last Return On Invested Capital (9.82%) for HEI is above the 3 year average (9.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 15.14% | ||
| ROIC | 9.82% |
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 (14.21%) is better than 89.06% of its industry peers.
In the last couple of years the Profit Margin of HEI has declined.
The Operating Margin of HEI (22.01%) is better than 93.75% of its industry peers.
HEI's Operating Margin has been stable in the last couple of years.
HEI's Gross Margin of 39.10% is fine compared to the rest of the industry. HEI outperforms 76.56% 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 | 22.01% | ||
| PM (TTM) | 14.21% | ||
| GM | 39.1% |
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.
Compared to 1 year ago, HEI has more shares outstanding
HEI has more shares outstanding than it did 5 years ago.
HEI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.98 indicates that HEI is not in any danger for bankruptcy at the moment.
HEI has a better Altman-Z score (6.98) than 81.25% of its industry peers.
The Debt to FCF ratio of HEI is 3.35, which is a good value as it means it would take HEI, 3.35 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 3.35, HEI belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that HEI is somewhat dependend on debt financing.
HEI's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. HEI outperforms 42.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.35 | ||
| Altman-Z | 6.98 |
ROIC/WACC0.99
WACC9.93%
2.3 Liquidity
A Current Ratio of 3.40 indicates that HEI has no problem at all paying its short term obligations.
The Current ratio of HEI (3.40) is better than 75.00% of its industry peers.
A Quick Ratio of 1.43 indicates that HEI should not have too much problems paying its short term obligations.
HEI has a Quick ratio of 1.43. This is comparable to the rest of the industry: HEI outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.74% over the past year.
HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.90% yearly.
HEI shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.06%.
HEI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.42% yearly.
EPS 1Y (TTM)30.74%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%46.34%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.93%
3.2 Future
HEI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.84% yearly.
The Revenue is expected to grow by 8.58% on average over the next years. This is quite good.
EPS Next Y22.72%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
EPS Next 5Y16.84%
Revenue Next Year9.87%
Revenue Next 2Y8.57%
Revenue Next 3Y7.96%
Revenue Next 5Y8.58%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 66.46, HEI can be considered very expensive at the moment.
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 (24.83), we can say HEI is valued expensively.
The Price/Forward Earnings ratio is 53.50, which means the current valuation is very expensive for HEI.
HEI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, HEI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.46 | ||
| Fwd PE | 53.5 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HEI is valued a bit cheaper than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.18 | ||
| EV/EBITDA | 36.81 |
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.
The excellent profitability rating of HEI may justify a higher PE ratio.
HEI's earnings are expected to grow with 15.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.93
PEG (5Y)7.47
EPS Next 2Y17.09%
EPS Next 3Y15.9%
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 1.37, HEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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.
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
5.38% 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.
DP5.38%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
268.48
+4.32 (+1.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.06%
Inst Owner Change-36.54%
Ins Owners22.7%
Ins Owner Change-1.04%
Market Cap37.31B
Analysts75.2
Price Target275.74 (2.7%)
Short Float %5.24%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.63%
Min EPS beat(2)-0.23%
Max EPS beat(2)25.49%
EPS beat(4)3
Avg EPS beat(4)9.32%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)7.56%
EPS beat(12)9
Avg EPS beat(12)3.97%
EPS beat(16)13
Avg EPS beat(16)3.93%
Revenue beat(2)1
Avg Revenue beat(2)0.7%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)4.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)8
Avg Revenue beat(12)1.07%
Revenue beat(16)9
Avg Revenue beat(16)0.69%
PT rev (1m)-3.07%
PT rev (3m)2.06%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0.09%
EPS NY rev (3m)4.57%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.46 | ||
| Fwd PE | 53.5 | ||
| P/S | 9.35 | ||
| P/FCF | 53.18 | ||
| P/OCF | 48.84 | ||
| P/B | 9.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.81 |
EPS(TTM)4.04
EY1.5%
EPS(NY)5.02
Fwd EY1.87%
FCF(TTM)5.05
FCFY1.88%
OCF(TTM)5.5
OCFY2.05%
SpS28.73
BVpS26.96
TBVpS-8.58
PEG (NY)2.93
PEG (5Y)7.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 15.14% | ||
| ROCE | 12.08% | ||
| ROIC | 9.82% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 32.92% | ||
| OM | 22.01% | ||
| PM (TTM) | 14.21% | ||
| GM | 39.1% | ||
| FCFM | 17.58% |
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-Score9
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.35 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 34.94% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.28% | ||
| Profit Quality | 123.65% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 6.98 |
F-Score9
WACC9.93%
ROIC/WACC0.99
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)30.74%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%46.34%
EPS Next Y22.72%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
EPS Next 5Y16.84%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.93%
Revenue Next Year9.87%
Revenue Next 2Y8.57%
Revenue Next 3Y7.96%
Revenue Next 5Y8.58%
EBIT growth 1Y29.93%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year37.68%
EBIT Next 3Y17.11%
EBIT Next 5Y16.07%
FCF growth 1Y62.2%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y63.68%
OCF growth 3Y14.83%
OCF growth 5Y8.98%