HEICO CORP (HEI) Stock Fundamental Analysis
USA - NYSE:HEI - US4228061093 - Common Stock
312.55 USD
-3.43 (-1.09%)
312.55 USD
0 (0%)
Overall HEI gets a fundamental rating of 6 out of 10. We evaluated HEI against 70 industry peers in the Aerospace & Defense industry. HEI scores excellent on profitability, but 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.
HEI had a positive operating cash flow in the past year.
HEI had positive earnings in each of the past 5 years.
In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
HEI has a Return On Assets of 7.52%. This is amongst the best in the industry. HEI outperforms 81.43% of its industry peers.
HEI has a better Return On Equity (15.50%) than 80.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.98%, HEI belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HEI is in line with the industry average of 8.43%.
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 92.86% of its industry peers.
In the last couple of years the Profit Margin of HEI has declined.
Looking at the Operating Margin, with a value of 22.38%, 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 Operating Margin of HEI has remained more or less at the same level.
HEI has a Gross Margin of 39.51%. This is in the better half of the industry: HEI outperforms 80.00% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI is creating some value.
HEI has more shares outstanding than it did 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
An Altman-Z score of 7.69 indicates that HEI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.69, HEI is in the better half of the industry, outperforming 72.86% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 3.13, HEI belongs to the best of the industry, outperforming 87.14% of the companies in the same industry.
HEI has a Debt/Equity ratio of 0.59. This is a neutral value indicating HEI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, HEI is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.69 |
ROIC/WACC1.05
WACC9.49%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI has no problem at all paying its short term obligations.
HEI's Current ratio of 3.35 is fine compared to the rest of the industry. HEI outperforms 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.
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.
Looking at the last year, HEI shows a quite strong growth in Revenue. The Revenue has grown by 13.46% in the last year.
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
HEI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.94% yearly.
Based on estimates for the next years, HEI will show a quite strong growth in Revenue. The Revenue will grow by 10.46% on average per year.
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
Based on the Price/Earnings ratio of 68.39, the valuation of HEI can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as HEI.
The average S&P500 Price/Earnings ratio is at 26.83. HEI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 57.87, the valuation of HEI can be described as expensive.
HEI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.88. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.39 | ||
| Fwd PE | 57.87 |
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.
HEI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.61 | ||
| EV/EBITDA | 40.16 |
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)2.16
PEG (5Y)7.69
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 1.11, HEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, HEI's dividend is way lower than the S&P500 average.
| 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%
312.55
-3.43 (-1.09%)
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 Cap43.51B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target360.8 (15.44%)
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 | 68.39 | ||
| Fwd PE | 57.87 | ||
| P/S | 10.14 | ||
| P/FCF | 55.61 | ||
| P/OCF | 51.52 | ||
| P/B | 10.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.16 |
EPS(TTM)4.57
EY1.46%
EPS(NY)5.4
Fwd EY1.73%
FCF(TTM)5.62
FCFY1.8%
OCF(TTM)6.07
OCFY1.94%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)2.16
PEG (5Y)7.69
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 | 7.69 |
F-Score8
WACC9.49%
ROIC/WACC1.05
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 6 / 10 to HEI.
What is the valuation status for HEI stock?
ChartMill assigns a valuation rating of 2 / 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 68.39 and the Price/Book (PB) ratio is 10.51.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.