Is HEICO CORP (NYSE:HEI) suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if HEICO CORP (NYSE:HEI) is suited for quality investing. Investors should of course do their own research, but we spotted HEICO CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:HEI highlighted

• HEICO CORP has shown strong performance in revenue growth over the past 5 years, with a 7.69% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• HEICO CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 33.52% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• HEICO CORP maintains a healthy Debt/Free Cash Flow Ratio of 3.02, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 123.0%, HEICO CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• HEICO CORP has consistently achieved strong EBIT growth over the past 5 years, with a 10.13% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• HEICO CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to HEI. HEI was compared to 64 industry peers in the Aerospace & Defense industry. HEI gets an excellent profitability rating and is at the same time showing great financial health properties. HEI is quite expensive at the moment. It does show a decent growth rate. These ratings could make HEI a good candidate for quality investing.

For an up to date full fundamental analysis you can check the fundamental report of HEI

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.