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. Both the health and profitability get an excellent rating, making HEI a very profitable company, without any liquidiy or solvency issues. HEI is valued quite expensively, but it does show have an excellent growth rating. These ratings could make HEI a good candidate for growth and quality 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 76.92% 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.
The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 8.36%.
The last Return On Invested Capital (10.04%) for HEI is above the 3 year average (9.51%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 14.54%, HEI belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
In the last couple of years the Profit Margin of HEI has declined.
HEI's Operating Margin of 22.20% is amongst the best of the industry. HEI outperforms 92.31% of its industry peers.
HEI's Operating Margin has been stable in the last couple of years.
HEI's Gross Margin of 39.35% is fine compared to the rest of the industry. HEI outperforms 78.46% 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 | 22.2% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI is still creating some value.
HEI has more shares outstanding than it did 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 7.79 indicates that HEI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.79, HEI belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
The Debt to FCF ratio of HEI is 2.99, which is a good value as it means it would take HEI, 2.99 years of fcf income to pay off all of its debts.
HEI has a Debt to FCF ratio of 2.99. This is amongst the best in the industry. HEI outperforms 86.15% of its industry peers.
HEI has a Debt/Equity ratio of 0.57. This is a neutral value indicating 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 | 7.79 |
ROIC/WACC1.02
WACC9.83%
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 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
Looking at the last year, HEI shows a quite strong growth in Revenue. The Revenue has grown by 17.74% in the last year.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 21.41% 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 10.16% yearly.
EPS Next Y22.72%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
EPS Next 5Y21.41%
Revenue Next Year11.14%
Revenue Next 2Y9.52%
Revenue Next 3Y8.78%
Revenue Next 5Y10.16%
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
With a Price/Earnings ratio of 70.88, HEI can be considered very expensive at the moment.
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 (26.52), we can say HEI is valued expensively.
A Price/Forward Earnings ratio of 60.45 indicates a quite expensive valuation of HEI.
Based on the Price/Forward Earnings ratio, HEI is valued a bit more expensive than the industry average as 63.08% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.25, HEI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.88 | ||
| Fwd PE | 60.45 |
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 the industry average as 63.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.31 | ||
| EV/EBITDA | 39.83 |
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 15.90% in the coming years.
PEG (NY)3.12
PEG (5Y)7.97
EPS Next 2Y17.09%
EPS Next 3Y15.9%
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 1.30.
Compared to an average S&P500 Dividend Yield of 2.38, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
On average, the dividend of HEI grows each year by 8.45%, 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)8.45%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
5.08% 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.
DP5.08%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
303.35
+2.21 (+0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.06%
Inst Owner Change-36.38%
Ins Owners22.7%
Ins Owner Change-1.03%
Market Cap42.15B
Analysts75.2
Price Target302.83 (-0.17%)
Short Float %4.81%
Short Ratio3.73
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)0%
PT rev (3m)2.06%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0%
EPS NY rev (3m)4.57%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.88 | ||
| Fwd PE | 60.45 | ||
| P/S | 10.2 | ||
| P/FCF | 55.31 | ||
| P/OCF | 50.95 | ||
| P/B | 10.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.83 |
EPS(TTM)4.28
EY1.41%
EPS(NY)5.02
Fwd EY1.65%
FCF(TTM)5.48
FCFY1.81%
OCF(TTM)5.95
OCFY1.96%
SpS29.75
BVpS28.55
TBVpS-7.17
PEG (NY)3.12
PEG (5Y)7.97
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 | 7.79 |
F-Score8
WACC9.83%
ROIC/WACC1.02
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 Y22.72%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
EPS Next 5Y21.41%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
Revenue Next Year11.14%
Revenue Next 2Y9.52%
Revenue Next 3Y8.78%
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%