HEICO CORP (HEI)
US4228061093 - Common Stock
Overall HEI gets a fundamental rating of 6 out of 10. We evaluated HEI against 64 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 could make HEI a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year HEI was profitable.
HEI had a positive operating cash flow in the past year.
In the past 5 years HEI has always been profitable.
Each year in the past 5 years HEI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.80%, HEI is doing good in the industry, outperforming 71.88% of the companies in the same industry.
With a decent Return On Equity value of 13.02%, HEI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.01%, HEI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 8.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 13.02% | ||
| ROIC | 8.01% |
ROA(3y)7.63%
ROA(5y)8.56%
ROE(3y)13.26%
ROE(5y)15.06%
ROIC(3y)9.4%
ROIC(5y)10.18%
1.3 Margins
The Profit Margin of HEI (13.11%) is better than 87.50% of its industry peers.
HEI's Profit Margin has been stable in the last couple of years.
HEI has a better Operating Margin (20.85%) than 93.75% of its industry peers.
HEI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 38.74%, HEI belongs to the best of the industry, outperforming 84.38% 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 | 20.85% | ||
| PM (TTM) | 13.11% | ||
| GM | 38.74% |
OM growth 3Y-0.01%
OM growth 5Y-0.09%
PM growth 3Y-8.19%
PM growth 5Y-1.39%
GM growth 3Y0.6%
GM growth 5Y0%
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.
Compared to 1 year ago, HEI has more shares outstanding
HEI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HEI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.70 indicates that HEI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.70, HEI belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
HEI has a debt to FCF ratio of 5.79. This is a neutral value as HEI would need 5.79 years to pay back of all of its debts.
HEI has a Debt to FCF ratio of 5.79. This is in the better half of the industry: HEI outperforms 67.19% of its industry peers.
HEI has a Debt/Equity ratio of 0.76. This is a neutral value indicating HEI is somewhat dependend on debt financing.
HEI has a worse Debt to Equity ratio (0.76) than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 5.7 |
ROIC/WACC0.88
WACC9.08%
2.3 Liquidity
HEI has a Current Ratio of 3.17. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
HEI has a Current ratio of 3.17. This is in the better half of the industry: HEI outperforms 79.69% of its industry peers.
A Quick Ratio of 1.40 indicates that HEI should not have too much problems paying its short term obligations.
HEI has a Quick ratio (1.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.31%, which is quite good.
The Earnings Per Share has been growing by 10.56% on average over the past years. This is quite good.
HEI shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.68%.
HEI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.80% yearly.
EPS 1Y (TTM)19.31%
EPS 3Y8.69%
EPS 5Y10.56%
EPS growth Q2Q22.39%
Revenue 1Y (TTM)38.68%
Revenue growth 3Y18.43%
Revenue growth 5Y10.8%
Revenue growth Q2Q44.37%
3.2 Future
The Earnings Per Share is expected to grow by 14.71% 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 15.20% yearly.
EPS Next Y20.34%
EPS Next 2Y19.49%
EPS Next 3Y17.43%
EPS Next 5Y14.71%
Revenue Next Year33.46%
Revenue Next 2Y19.83%
Revenue Next 3Y15.2%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HEI is valuated quite expensively with a Price/Earnings ratio of 66.82.
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 24.92.
Based on the Price/Forward Earnings ratio of 49.18, the valuation of HEI can be described as expensive.
HEI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.82 | ||
| Fwd PE | 49.18 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.17 | ||
| EV/EBITDA | 37.59 |
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 decent 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 17.43% in the coming years.
PEG (NY)3.29
PEG (5Y)6.33
EPS Next 2Y19.49%
EPS Next 3Y17.43%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.10%, which is pretty low.
HEI's Dividend Yield is a higher than the industry average which is at 1.34.
With a Dividend Yield of 0.10, HEI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
5.2 History
The dividend of HEI is nicely growing with an annual growth rate of 11.36%!
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)11.36%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
HEI pays out 6.47% of its income as dividend. This is a sustainable payout ratio.
HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP6.47%
EPS Next 2Y19.49%
EPS Next 3Y17.43%
HEICO CORP
NYSE:HEI (4/26/2024, 7:04:00 PM)
After market: 206.46 0 (0%)206.46
-0.36 (-0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.82 | ||
| Fwd PE | 49.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.29
PEG (5Y)6.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.8% | ||
| ROE | 13.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.85% | ||
| PM (TTM) | 13.11% | ||
| GM | 38.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.31%
EPS 3Y8.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)38.68%
Revenue growth 3Y18.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y