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%)
We assign a fundamental rating of 7 out of 10 to HEI. HEI was compared to 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 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.
Each year in the past 5 years HEI has been profitable.
Each year in the past 5 years HEI had a positive operating cash flow.
1.2 Ratios
HEI has a Return On Assets of 7.52%. This is amongst the best in the industry. HEI outperforms 81.69% of its industry peers.
HEI has a Return On Equity of 15.50%. This is amongst the best in the industry. HEI outperforms 80.28% of its industry peers.
HEI's Return On Invested Capital of 9.98% is amongst the best of the industry. HEI outperforms 84.51% 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 8.53%.
The last Return On Invested Capital (9.98%) for HEI is above the 3 year average (9.51%), which is a sign of increasing profitability.
| 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's Profit Margin of 14.96% is amongst the best of the industry. HEI outperforms 92.96% 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 92.96% of its industry peers.
HEI's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 39.51%, HEI is doing good in the industry, outperforming 78.87% 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 | 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 below the Cost of Capital (WACC), so HEI is destroying value.
HEI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HEI has more shares outstanding
Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
HEI has an Altman-Z score of 7.68. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HEI (7.68) is better than 78.87% of its industry peers.
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's Debt to FCF ratio of 3.13 is amongst the best of 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.
HEI has a worse Debt to Equity ratio (0.59) than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.68 |
ROIC/WACC0.98
WACC10.15%
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.
HEI has a Current ratio of 3.35. This is in the better half of the industry: HEI outperforms 67.61% 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
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.
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 13.46%.
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)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
Based on estimates for the next years, HEI will show a very strong growth in Earnings Per Share. The EPS will grow by 21.94% on average per year.
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
HEI is valuated quite expensively with a Price/Earnings ratio of 69.35.
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 (26.31), we can say HEI is valued expensively.
Based on the Price/Forward Earnings ratio of 58.68, the valuation of HEI can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.59. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.35 | ||
| Fwd PE | 58.68 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA is on the same level as 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 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 18.44% 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
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 1.14.
With a Dividend Yield of 0.08, HEI pays less dividend than the S&P500 average, which is at 2.34.
| 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.
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%
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
WACC10.15%
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.