HEICO CORP (HEI) Stock Fundamental Analysis
USA - NYSE:HEI - US4228061093 - Common Stock
314.21 USD
-7.8 (-2.42%)
Taking everything into account, HEI scores 7 out of 10 in our fundamental rating. HEI was compared to 68 industry peers in the Aerospace & Defense industry. While HEI has a great profitability rating, 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
HEI had positive earnings in the past year.
HEI had a positive operating cash flow in the past year.
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
The Return On Assets of HEI (7.52%) is better than 82.35% of its industry peers.
HEI has a Return On Equity of 15.50%. This is amongst the best in the industry. HEI outperforms 80.88% of its industry peers.
HEI has a better Return On Invested Capital (9.98%) than 83.82% 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 8.27%.
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 Profit Margin of 14.96%. This is amongst the best in the industry. HEI outperforms 92.65% of its industry peers.
HEI's Profit Margin has declined in the last couple of years.
The Operating Margin of HEI (22.38%) is better than 92.65% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
The Gross Margin of HEI (39.51%) is better than 79.41% 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 | 22.38% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI is still creating some value.
The number of shares outstanding for HEI has been increased compared to 1 year ago.
Compared to 5 years ago, HEI has more shares outstanding
HEI has a better debt/assets ratio than last year.
2.2 Solvency
HEI has an Altman-Z score of 7.81. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
HEI's Altman-Z score of 7.81 is fine compared to the rest of the industry. HEI outperforms 73.53% of its industry peers.
The Debt to FCF ratio of HEI is 3.13, which is a good value as it means it would take HEI, 3.13 years of fcf income to pay off all of its debts.
HEI has a Debt to FCF ratio of 3.13. This is amongst the best in the industry. HEI outperforms 88.24% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that 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 | 7.81 |
ROIC/WACC1.04
WACC9.61%
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 72.06% 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.
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
The Earnings Per Share has grown by an impressive 34.02% over the past year.
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.
Measured over the past years, HEI shows a quite strong growth in Revenue. The Revenue has been growing by 13.42% on average per year.
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 Y31.58%
EPS Next 2Y21.52%
EPS Next 3Y18.59%
EPS Next 5Y21.94%
Revenue Next Year13.46%
Revenue Next 2Y11.59%
Revenue Next 3Y10.04%
Revenue Next 5Y10.46%
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
The Price/Earnings ratio is 68.75, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Earnings ratio as HEI.
HEI is valuated expensively when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 58.13, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
The average S&P500 Price/Forward Earnings ratio is at 23.36. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.75 | ||
| Fwd PE | 58.13 |
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 indicates a somewhat cheap valuation: HEI is cheaper than 63.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.9 | ||
| EV/EBITDA | 40.89 |
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.
A more expensive valuation may be justified as HEI's earnings are expected to grow with 18.59% in the coming years.
PEG (NY)2.18
PEG (5Y)7.73
EPS Next 2Y21.52%
EPS Next 3Y18.59%
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 1.21, 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 2.44.
| 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
HEI pays out 4.98% 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.
DP4.98%
EPS Next 2Y21.52%
EPS Next 3Y18.59%
NYSE:HEI (10/7/2025, 11:52:00 AM)
314.21
-7.8 (-2.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.01%
Ins Owners22.66%
Ins Owner Change-11.5%
Market Cap43.74B
Analysts79.13
Price Target360.8 (14.83%)
Short Float %5.06%
Short Ratio5.41
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)4.28%
PT rev (3m)16.15%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)3.87%
EPS NY rev (1m)3.52%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)3.94%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.75 | ||
| Fwd PE | 58.13 | ||
| P/S | 10.2 | ||
| P/FCF | 55.9 | ||
| P/OCF | 51.79 | ||
| P/B | 10.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.89 |
EPS(TTM)4.57
EY1.45%
EPS(NY)5.4
Fwd EY1.72%
FCF(TTM)5.62
FCFY1.79%
OCF(TTM)6.07
OCFY1.93%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)2.18
PEG (5Y)7.73
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%
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 Turnover0.5
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 | 7.81 |
F-Score8
WACC9.61%
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 Y31.58%
EPS Next 2Y21.52%
EPS Next 3Y18.59%
EPS Next 5Y21.94%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.46%
Revenue Next 2Y11.59%
Revenue Next 3Y10.04%
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%