HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
NYSE:HEI.A - New York Stock Exchange, Inc. - US4228062083 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to HEI.A. HEI.A was compared to 65 industry peers in the Aerospace & Defense industry. While HEI.A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HEI.A is valued quite expensively, but it does show have an excellent growth rating. With these ratings, HEI.A could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year HEI.A was profitable.
In the past year HEI.A had a positive cash flow from operations.
In the past 5 years HEI.A has always been profitable.
HEI.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEI.A has a Return On Assets of 7.19%. This is in the better half of the industry: HEI.A outperforms 80.00% of its industry peers.
HEI.A's Return On Equity of 15.14% is amongst the best of the industry. HEI.A outperforms 83.08% of its industry peers.
The Return On Invested Capital of HEI.A (9.82%) is better than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HEI.A is in line with the industry average of 7.87%.
The last Return On Invested Capital (9.82%) for HEI.A is above the 3 year average (9.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 15.14% | ||
| ROIC | 9.82% |
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 has a better Profit Margin (14.21%) than 90.77% of its industry peers.
HEI.A's Profit Margin has declined in the last couple of years.
The Operating Margin of HEI.A (22.01%) is better than 95.38% of its industry peers.
In the last couple of years the Operating Margin of HEI.A has remained more or less at the same level.
HEI.A has a better Gross Margin (39.10%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of HEI.A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.01% | ||
| PM (TTM) | 14.21% | ||
| GM | 39.1% |
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.A is destroying value.
HEI.A has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HEI.A has been increased compared to 5 years ago.
Compared to 1 year ago, HEI.A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.50 indicates that HEI.A is not in any danger for bankruptcy at the moment.
HEI.A's Altman-Z score of 5.50 is fine compared to the rest of the industry. HEI.A outperforms 76.92% of its industry peers.
HEI.A has a debt to FCF ratio of 3.35. This is a good value and a sign of high solvency as HEI.A would need 3.35 years to pay back of all of its debts.
HEI.A has a better Debt to FCF ratio (3.35) than 89.23% of its industry peers.
HEI.A has a Debt/Equity ratio of 0.63. This is a neutral value indicating HEI.A is somewhat dependend on debt financing.
HEI.A has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.35 | ||
| Altman-Z | 5.5 |
ROIC/WACC1
WACC9.83%
2.3 Liquidity
A Current Ratio of 3.40 indicates that HEI.A has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.40, HEI.A is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that HEI.A should not have too much problems paying its short term obligations.
HEI.A's Quick ratio of 1.43 is in line compared to the rest of the industry. HEI.A outperforms 52.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 1.43 |
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 30.74%, 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 8.90% yearly.
HEI.A shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.06%.
HEI.A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.42% yearly.
EPS 1Y (TTM)30.74%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%46.34%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.93%
3.2 Future
The Earnings Per Share is expected to grow by 16.84% 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 8.58% on average per year.
EPS Next Y22.72%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
EPS Next 5Y16.84%
Revenue Next Year9.95%
Revenue Next 2Y8.7%
Revenue Next 3Y7.96%
Revenue Next 5Y8.58%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HEI.A is valuated quite expensively with a Price/Earnings ratio of 47.98.
Compared to the rest of the industry, the Price/Earnings ratio of HEI.A is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HEI.A to the average of the S&P500 Index (28.33), we can say HEI.A is valued expensively.
Based on the Price/Forward Earnings ratio of 38.62, the valuation of HEI.A can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI.A is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of HEI.A to the average of the S&P500 Index (21.37), we can say HEI.A is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.98 | ||
| Fwd PE | 38.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEI.A is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, HEI.A is valued a bit cheaper than the industry average as 73.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.39 | ||
| EV/EBITDA | 27.18 |
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.
A more expensive valuation may be justified as HEI.A's earnings are expected to grow with 15.90% in the coming years.
PEG (NY)2.11
PEG (5Y)5.39
EPS Next 2Y17.09%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.09%, HEI.A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.36, HEI.A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, HEI.A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
5.2 History
The dividend of HEI.A is nicely growing with an annual growth rate of 8.45%!
HEI.A has been paying a dividend for at least 10 years, so it has a reliable track record.
HEI.A 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
5.38% of the earnings are spent on dividend by HEI.A. This is a low number and sustainable payout ratio.
HEI.A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5.38%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
193.82
+2.91 (+1.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.06%
Inst Owner Change0.33%
Ins Owners22.7%
Ins Owner ChangeN/A
Market Cap26.93B
Analysts75.83
Price Target224.61 (15.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.63%
Min EPS beat(2)-0.23%
Max EPS beat(2)25.49%
EPS beat(4)3
Avg EPS beat(4)9.32%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)7.56%
EPS beat(12)9
Avg EPS beat(12)3.97%
EPS beat(16)13
Avg EPS beat(16)3.93%
Revenue beat(2)1
Avg Revenue beat(2)0.7%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)4.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)8
Avg Revenue beat(12)1.07%
Revenue beat(16)9
Avg Revenue beat(16)0.69%
PT rev (1m)0.64%
PT rev (3m)4.52%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)4.57%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.98 | ||
| Fwd PE | 38.62 | ||
| P/S | 6.75 | ||
| P/FCF | 38.39 | ||
| P/OCF | 35.26 | ||
| P/B | 7.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.18 |
EPS(TTM)4.04
EY2.08%
EPS(NY)5.02
Fwd EY2.59%
FCF(TTM)5.05
FCFY2.6%
OCF(TTM)5.5
OCFY2.84%
SpS28.73
BVpS26.96
TBVpS-8.58
PEG (NY)2.11
PEG (5Y)5.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 15.14% | ||
| ROCE | 12.08% | ||
| ROIC | 9.82% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 32.92% | ||
| OM | 22.01% | ||
| PM (TTM) | 14.21% | ||
| GM | 39.1% | ||
| FCFM | 17.58% |
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-Score9
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.35 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 34.94% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.28% | ||
| Profit Quality | 123.65% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 5.5 |
F-Score9
WACC9.83%
ROIC/WACC1
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)30.74%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%46.34%
EPS Next Y22.72%
EPS Next 2Y17.09%
EPS Next 3Y15.9%
EPS Next 5Y16.84%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.93%
Revenue Next Year9.95%
Revenue Next 2Y8.7%
Revenue Next 3Y7.96%
Revenue Next 5Y8.58%
EBIT growth 1Y29.93%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year37.68%
EBIT Next 3Y17.11%
EBIT Next 5Y16.07%
FCF growth 1Y62.2%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y63.68%
OCF growth 3Y14.83%
OCF growth 5Y8.98%