HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
259.85 USD
-2.35 (-0.9%)
259.85 USD
0 (0%)
Taking everything into account, HEI.A scores 5 out of 10 in our fundamental rating. HEI.A was compared to 71 industry peers in the Aerospace & Defense industry. While HEI.A has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, HEI.A is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
HEI.A had positive earnings in the past year.
In the past year HEI.A had a positive cash flow from operations.
HEI.A had positive earnings in 4 of the past 5 years.
Of the past 5 years HEI.A 4 years had a positive operating cash flow.
1.2 Ratios
HEI.A's Return On Assets of 7.52% is amongst the best of the industry. HEI.A outperforms 83.10% of its industry peers.
HEI.A's Return On Equity of 15.50% is amongst the best of the industry. HEI.A outperforms 81.69% of its industry peers.
HEI.A's Return On Invested Capital of 9.98% is amongst the best of the industry. HEI.A outperforms 84.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEI.A is in line with the industry average of 8.60%.
The 3 year average ROIC (9.51%) for HEI.A 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.A's Profit Margin of 14.96% is amongst the best of the industry. HEI.A outperforms 94.37% of its industry peers.
In the last couple of years the Profit Margin of HEI.A has declined.
HEI.A has a Operating Margin of 22.38%. This is amongst the best in the industry. HEI.A outperforms 94.37% of its industry peers.
HEI.A's Operating Margin has been stable in the last couple of years.
HEI.A has a Gross Margin of 39.51%. This is in the better half of the industry: HEI.A outperforms 78.87% of its industry peers.
HEI.A'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI.A is creating some value.
There is no outstanding debt for HEI.A. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.67 indicates that HEI.A is not in any danger for bankruptcy at the moment.
HEI.A has a Altman-Z score of 6.67. This is in the better half of the industry: HEI.A outperforms 64.79% of its industry peers.
The Debt to FCF ratio of HEI.A is 3.13, which is a good value as it means it would take HEI.A, 3.13 years of fcf income to pay off all of its debts.
HEI.A has a better Debt to FCF ratio (3.13) than 85.92% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that HEI.A is somewhat dependend on debt financing.
The Debt to Equity ratio of HEI.A (0.59) is worse than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.67 |
ROIC/WACC1.03
WACC9.68%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI.A has no problem at all paying its short term obligations.
HEI.A has a better Current ratio (3.35) than 66.20% of its industry peers.
HEI.A has a Quick Ratio of 1.51. This is a normal value and indicates that HEI.A is financially healthy and should not expect problems in meeting its short term obligations.
HEI.A has a Quick ratio (1.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
HEI.A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.15%, which is quite impressive.
HEI.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.48% yearly.
EPS 1Y (TTM)34.15%
EPS 3Y24.41%
EPS 5Y16.48%
EPS Q2Q%34.34%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
3.2 Future
The Earnings Per Share is expected to grow by 19.06% on average over the next years. This is quite good.
Based on estimates for the next years, HEI.A will show a quite strong growth in Revenue. The Revenue will grow by 9.63% on average per year.
EPS Next Y11.53%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
EPS Next 5Y19.06%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y9.63%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 52.92, HEI.A can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HEI.A is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.57. HEI.A is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 47.45, which means the current valuation is very expensive for HEI.A.
HEI.A's Price/Forward Earnings ratio is in line with the industry average.
HEI.A is valuated expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.92 | ||
| Fwd PE | 47.45 |
4.2 Price Multiples
HEI.A's Enterprise Value to EBITDA is on the same level as the industry average.
66.20% of the companies in the same industry are more expensive than HEI.A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.23 | ||
| EV/EBITDA | 33.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HEI.A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.59
PEG (5Y)3.21
EPS Next 2Y12.68%
EPS Next 3Y11.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.07%, HEI.A is not a good candidate for dividend investing.
HEI.A's Dividend Yield is a higher than the industry average which is at 0.41.
Compared to an average S&P500 Dividend Yield of 1.88, HEI.A'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.A grows each year by 8.47%, which is quite nice.
HEI.A has paid a dividend for at least 10 years, which is a reliable track record.
As HEI.A 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.A pays out 4.98% of its income as dividend. This is a sustainable payout ratio.
The dividend of HEI.A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.98%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
259.85
-2.35 (-0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.05%
Inst Owner Change-6.39%
Ins Owners15.53%
Ins Owner ChangeN/A
Market Cap36.17B
Revenue(TTM)N/A
Net Income(TTM)641.78M
Analysts78.33
Price Target286.32 (10.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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)3.7%
PT rev (3m)1.54%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.92 | ||
| Fwd PE | 47.45 | ||
| P/S | 8.43 | ||
| P/FCF | 46.23 | ||
| P/OCF | 42.83 | ||
| P/B | 8.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.65 |
EPS(TTM)4.91
EY1.89%
EPS(NY)5.48
Fwd EY2.11%
FCF(TTM)5.62
FCFY2.16%
OCF(TTM)6.07
OCFY2.33%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)4.59
PEG (5Y)3.21
Graham Number57.33
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 | 6.67 |
F-Score8
WACC9.68%
ROIC/WACC1.03
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)34.15%
EPS 3Y24.41%
EPS 5Y16.48%
EPS Q2Q%34.34%
EPS Next Y11.53%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
EPS Next 5Y19.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y9.63%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.21%
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-CLASS A / HEI.A FAQ
What is the fundamental rating for HEI.A stock?
ChartMill assigns a fundamental rating of 5 / 10 to HEI.A.
Can you provide the valuation status for HEICO CORP-CLASS A?
ChartMill assigns a valuation rating of 2 / 10 to HEICO CORP-CLASS A (HEI.A). This can be considered as Overvalued.
What is the profitability of HEI.A stock?
HEICO CORP-CLASS A (HEI.A) has a profitability rating of 7 / 10.
What is the financial health of HEICO CORP-CLASS A (HEI.A) stock?
The financial health rating of HEICO CORP-CLASS A (HEI.A) is 6 / 10.
What is the expected EPS growth for HEICO CORP-CLASS A (HEI.A) stock?
The Earnings per Share (EPS) of HEICO CORP-CLASS A (HEI.A) is expected to grow by 11.53% in the next year.