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 65 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 expensive, but it does show an excellent growth. These ratings could make HEI a good candidate 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.
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 7.43%, HEI is doing good in the industry, outperforming 78.46% of the companies in the same industry.
With a decent Return On Equity value of 15.15%, HEI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
HEI has a better Return On Invested Capital (10.04%) than 83.08% 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 8.44%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(10.04%), indicating increased profibility in the last year.
| 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
HEI has a better Profit Margin (14.54%) than 89.23% of its industry peers.
HEI's Profit Margin has declined in the last couple of years.
HEI's Operating Margin of 22.20% is amongst the best of the industry. HEI outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
With a decent Gross Margin value of 39.35%, HEI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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 | 22.2% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HEI is destroying 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.15 indicates that HEI is not in any danger for bankruptcy at the moment.
HEI's Altman-Z score of 8.15 is amongst the best of the industry. HEI outperforms 83.08% 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 86.15% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that HEI is somewhat dependend on debt financing.
HEI has a Debt to Equity ratio (0.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 8.15 |
ROIC/WACC0.99
WACC10.1%
2.3 Liquidity
HEI has a Current Ratio of 3.43. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
HEI has a better Current ratio (3.43) than 70.77% of its industry peers.
A Quick Ratio of 1.56 indicates that HEI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.56, HEI is in line with its industry, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.33% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.74%.
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)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
HEI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.41% yearly.
HEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
EPS Next Y25.99%
EPS Next 2Y19.43%
EPS Next 3Y17.4%
EPS Next 5Y21.41%
Revenue Next Year11.64%
Revenue Next 2Y9.99%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
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 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
With a Price/Earnings ratio of 74.50, 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 (27.28), we can say HEI is valued expensively.
With a Price/Forward Earnings ratio of 61.07, HEI can be considered very expensive at the moment.
HEI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HEI is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, HEI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.5 | ||
| Fwd PE | 61.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEI is on the same level as its industry peers.
63.08% of the companies in the same industry are more expensive than HEI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.13 | ||
| EV/EBITDA | 42.06 |
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 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 17.40% in the coming years.
PEG (NY)2.87
PEG (5Y)8.37
EPS Next 2Y19.43%
EPS Next 3Y17.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.07%, HEI is not a good candidate for dividend investing.
HEI's Dividend Yield is a higher than the industry average which is at 1.27.
Compared to an average S&P500 Dividend Yield of 2.42, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
The dividend of HEI is nicely growing with an annual growth rate of 8.45%!
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)8.45%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI pays out 5.08% 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.
DP5.08%
EPS Next 2Y19.43%
EPS Next 3Y17.4%
318.84
-2.67 (-0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners71.77%
Inst Owner Change-36.38%
Ins Owners22.67%
Ins Owner Change-3.02%
Market Cap44.30B
Analysts75.2
Price Target310.64 (-2.57%)
Short Float %5.62%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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)12.66%
PT rev (3m)9.75%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)2.66%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.5 | ||
| Fwd PE | 61.07 | ||
| P/S | 10.72 | ||
| P/FCF | 58.13 | ||
| P/OCF | 53.55 | ||
| P/B | 11.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.06 |
EPS(TTM)4.28
EY1.34%
EPS(NY)5.22
Fwd EY1.64%
FCF(TTM)5.48
FCFY1.72%
OCF(TTM)5.95
OCFY1.87%
SpS29.75
BVpS28.55
TBVpS-7.17
PEG (NY)2.87
PEG (5Y)8.37
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 | 8.15 |
F-Score8
WACC10.1%
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)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
EPS Next Y25.99%
EPS Next 2Y19.43%
EPS Next 3Y17.4%
EPS Next 5Y21.41%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
Revenue Next Year11.64%
Revenue Next 2Y9.99%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year37.56%
EBIT Next 3Y17.14%
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%