HEICO CORP (HEI) Stock Fundamental Analysis
USA - NYSE:HEI - US4228061093 - Common Stock
317.77 USD
+7.44 (+2.4%)
317.77 USD
0 (0%)
Overall HEI gets a fundamental rating of 7 out of 10. We evaluated HEI against 70 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 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.
In the past year HEI had a positive cash flow from operations.
HEI had positive earnings in each of the past 5 years.
HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.52%, HEI belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
HEI has a Return On Equity of 15.50%. This is in the better half of the industry: HEI outperforms 80.00% of its industry peers.
HEI has a better Return On Invested Capital (9.98%) than 82.86% of its industry peers.
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 8.43%.
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
Looking at the Profit Margin, with a value of 14.96%, HEI belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of HEI has declined.
The Operating Margin of HEI (22.38%) is better than 92.86% of its industry peers.
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 80.00% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI is creating some value.
The number of shares outstanding for HEI has been increased compared to 1 year ago.
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 7.59 indicates that HEI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.59, HEI is doing good in the industry, outperforming 71.43% 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.
The Debt to FCF ratio of HEI (3.13) is better than 87.14% 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.
HEI has a Debt to Equity ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.59 |
ROIC/WACC1.04
WACC9.57%
2.3 Liquidity
HEI has a Current Ratio of 3.35. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HEI (3.35) is better than 70.00% of its industry peers.
HEI has a Quick Ratio of 1.51. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.51, HEI perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
| 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.
HEI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.46%.
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
HEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 69.53 indicates a quite expensive valuation of HEI.
HEI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.10. HEI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 58.84, 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 22.52, HEI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.53 | ||
| Fwd PE | 58.84 |
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.
Based on the Price/Free Cash Flow ratio, HEI is valued a bit cheaper than 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.54 | ||
| EV/EBITDA | 39.48 |
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)2.2
PEG (5Y)7.82
EPS Next 2Y21.47%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.08%, which is pretty low.
HEI's Dividend Yield is a higher than the industry average which is at 1.11.
With a Dividend Yield of 0.08, HEI pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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.
The dividend of HEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.98%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
317.77
+7.44 (+2.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.46%
Ins Owners22.66%
Ins Owner Change-2.03%
Market Cap44.24B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target360.8 (13.54%)
Short Float %4.96%
Short Ratio5.97
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)1.02%
PT rev (3m)10.62%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.53 | ||
| Fwd PE | 58.84 | ||
| P/S | 10.31 | ||
| P/FCF | 56.54 | ||
| P/OCF | 52.38 | ||
| P/B | 10.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.48 |
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)2.2
PEG (5Y)7.82
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 | 7.59 |
F-Score8
WACC9.57%
ROIC/WACC1.04
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 69.53 and the Price/Book (PB) ratio is 10.68.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.