HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
316.91 USD
+1.65 (+0.52%)
316.91 USD
0 (0%)
HEI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 shows excellent growth, but is valued quite expensive already. 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.
Each year in the past 5 years HEI has been profitable.
In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.52%, HEI belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
HEI has a better Return On Equity (15.50%) than 80.28% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.98%, HEI belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
HEI had an Average Return On Invested Capital over the past 3 years of 9.51%. This is in line with the industry average of 8.53%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(9.98%), indicating increased profibility in the last year.
| 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 better Profit Margin (14.96%) than 92.96% of its industry peers.
HEI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.38%, HEI belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
HEI's Operating Margin has been stable in the last couple of years.
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.
Compared to 1 year ago, HEI has more shares outstanding
The number of shares outstanding for HEI has been increased compared to 5 years ago.
Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.68 indicates that HEI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.68, HEI is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
HEI has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as HEI would need 3.13 years to pay back of all of its debts.
HEI has a Debt to FCF ratio of 3.13. This is amongst the best in the industry. HEI outperforms 85.92% of its industry peers.
HEI has a Debt/Equity ratio of 0.59. This is a neutral value indicating 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 | 7.68 |
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 has a better Current ratio (3.35) than 67.61% 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 (1.51) which is in line with 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 34.02%, which is quite impressive.
Measured over the past years, HEI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.90% on average per year.
The Revenue has grown by 13.46% in the past year. This is quite good.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
EPS 1Y (TTM)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
3.2 Future
The Earnings Per Share is expected to grow by 21.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.46% on average over the next years. This is quite good.
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 69.35, which means the current valuation is very expensive for HEI.
HEI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of HEI to the average of the S&P500 Index (26.31), we can say HEI is valued expensively.
With a Price/Forward Earnings ratio of 58.68, HEI can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
HEI is valuated expensively when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.35 | ||
| Fwd PE | 58.68 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA ratio is in line with the industry average.
60.56% 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 | 56.38 | ||
| EV/EBITDA | 40.07 |
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.
A more expensive valuation may be justified as HEI's earnings are expected to grow with 18.44% in the coming years.
PEG (NY)2.19
PEG (5Y)7.79
EPS Next 2Y21.47%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, HEI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.15, HEI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.08, HEI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
The dividend of HEI is nicely growing with an annual growth rate of 8.47%!
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)8.47%
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 2Y21.47%
EPS Next 3Y18.44%
316.91
+1.65 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.56%
Ins Owners22.66%
Ins Owner Change2.3%
Market Cap44.12B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target356.29 (12.43%)
Short Float %5.02%
Short Ratio7.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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)-1.25%
PT rev (3m)8.28%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.65%
EPS NY rev (1m)0%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.35 | ||
| Fwd PE | 58.68 | ||
| P/S | 10.29 | ||
| P/FCF | 56.38 | ||
| P/OCF | 52.24 | ||
| P/B | 10.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.07 |
EPS(TTM)4.57
EY1.44%
EPS(NY)5.4
Fwd EY1.7%
FCF(TTM)5.62
FCFY1.77%
OCF(TTM)6.07
OCFY1.91%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)2.19
PEG (5Y)7.79
Graham Number55.31
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 | 7.68 |
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)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.27%
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
Can you provide the ChartMill fundamental rating for HEICO CORP?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.
What is the valuation status for HEI stock?
ChartMill assigns a valuation rating of 3 / 10 to HEICO CORP (HEI). This can be considered as Overvalued.
What is the profitability of HEI stock?
HEICO CORP (HEI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of HEICO CORP (HEI) stock?
The Price/Earnings (PE) ratio for HEICO CORP (HEI) is 69.35 and the Price/Book (PB) ratio is 10.65.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.