HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
252.43 USD
-2.6 (-1.02%)
252.43 USD
0 (0%)
Taking everything into account, HEI.A scores 6 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. HEI.A is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years HEI.A 4 years were profitable.
Of the past 5 years HEI.A 4 years had a positive operating cash flow.
1.2 Ratios
HEI.A has a Return On Assets of 7.52%. This is amongst the best in the industry. HEI.A outperforms 83.10% of its industry peers.
HEI.A has a Return On Equity of 15.50%. This is amongst the best in the industry. HEI.A outperforms 81.69% of its industry peers.
HEI.A has a Return On Invested Capital of 9.98%. This is amongst the best in 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 last Return On Invested Capital (9.98%) for HEI.A 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.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.
The Operating Margin of HEI.A (22.38%) is better than 94.37% 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.
With an excellent Gross Margin value of 39.51%, HEI.A belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
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 | 22.38% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HEI.A is destroying value.
HEI.A has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HEI.A has an Altman-Z score of 6.48. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HEI.A (6.48) is better than 67.61% 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's Debt to FCF ratio of 3.13 is amongst the best of the industry. HEI.A outperforms 85.92% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that HEI.A is somewhat dependend on debt financing.
HEI.A has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.48 |
ROIC/WACC0.99
WACC10.04%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI.A has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.35, HEI.A is in the better half of the industry, outperforming 67.61% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that HEI.A should not have too much problems paying its short term obligations.
The Quick ratio of HEI.A (1.51) 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 34.29%, which is quite impressive.
Measured over the past years, HEI.A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.50% on average per year.
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
3.2 Future
Based on estimates for the next years, HEI.A will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.03% on average per year.
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 Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y19.03%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y9.63%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.41, the valuation of HEI.A can be described as expensive.
HEI.A's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.51. HEI.A is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 46.10 indicates a quite expensive valuation of HEI.A.
HEI.A's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HEI.A to the average of the S&P500 Index (23.13), we can say HEI.A is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.41 | ||
| Fwd PE | 46.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HEI.A.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI.A indicates a somewhat cheap valuation: HEI.A is cheaper than 66.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.91 | ||
| EV/EBITDA | 32.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEI.A does not grow enough to justify the current Price/Earnings ratio.
HEI.A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.5
PEG (5Y)3.12
EPS Next 2Y12.63%
EPS Next 3Y11.48%
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 0.39.
With a Dividend Yield of 0.07, HEI.A pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
The dividend of HEI.A is nicely growing with an annual growth rate of 8.47%!
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.
HEI.A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.98%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
252.43
-2.6 (-1.02%)
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 Cap35.14B
Revenue(TTM)N/A
Net Income(TTM)641.78M
Analysts78.33
Price Target286.32 (13.43%)
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)2.87%
PT rev (3m)1.54%
EPS NQ rev (1m)3.62%
EPS NQ rev (3m)3.98%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.41 | ||
| Fwd PE | 46.1 | ||
| P/S | 8.19 | ||
| P/FCF | 44.91 | ||
| P/OCF | 41.61 | ||
| P/B | 8.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 32.47 |
EPS(TTM)4.91
EY1.95%
EPS(NY)5.48
Fwd EY2.17%
FCF(TTM)5.62
FCFY2.23%
OCF(TTM)6.07
OCFY2.4%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)4.5
PEG (5Y)3.12
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 | 6.48 |
F-Score8
WACC10.04%
ROIC/WACC0.99
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)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
EPS Next Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y19.03%
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 Year45.41%
EBIT Next 3Y21.08%
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
Can you provide the ChartMill fundamental rating for HEICO CORP-CLASS A?
ChartMill assigns a fundamental rating of 6 / 10 to HEI.A.
What is the valuation status of HEICO CORP-CLASS A (HEI.A) stock?
ChartMill assigns a valuation rating of 3 / 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 8 / 10.
What is the earnings growth outlook for HEICO CORP-CLASS A?
The Earnings per Share (EPS) of HEICO CORP-CLASS A (HEI.A) is expected to grow by 11.42% in the next year.
Can you provide the dividend sustainability for HEI.A stock?
The dividend rating of HEICO CORP-CLASS A (HEI.A) is 6 / 10 and the dividend payout ratio is 4.98%.