HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - NYSE:HEI.A - US4228062083 - Common Stock
246.12 USD
+0.19 (+0.08%)
246.12 USD
0 (0%)
Taking everything into account, HEI.A scores 7 out of 10 in our fundamental rating. HEI.A was compared to 71 industry peers in the Aerospace & Defense industry. HEI.A scores excellent on profitability, but there are some minor concerns on its financial health. HEI.A is valued quite expensively, but it does show have an excellent growth rating. This makes HEI.A very considerable 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.
Each year in the past 5 years HEI.A had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HEI.A (7.52%) is better than 83.10% of its industry peers.
The Return On Equity of HEI.A (15.50%) is better than 81.69% of its industry peers.
The Return On Invested Capital of HEI.A (9.98%) is better than 84.51% 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 8.48%.
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 has a better Profit Margin (14.96%) than 94.37% of its industry peers.
In the last couple of years the Profit Margin of HEI.A has declined.
HEI.A's Operating Margin of 22.38% is amongst the best of the industry. HEI.A outperforms 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 81.69% 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 just above the Cost of Capital (WACC), so HEI.A is still creating some value.
Compared to 1 year ago, HEI.A has more shares outstanding
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
HEI.A has an Altman-Z score of 6.36. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
HEI.A has a better Altman-Z score (6.36) 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 87.32% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that HEI.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, HEI.A is in line with its industry, outperforming 45.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.36 |
ROIC/WACC1.04
WACC9.57%
2.3 Liquidity
HEI.A has a Current Ratio of 3.35. This indicates that HEI.A is financially healthy and has no problem in meeting its short term obligations.
HEI.A's Current ratio of 3.35 is fine compared to the rest of the industry. HEI.A outperforms 71.83% of its industry peers.
A Quick Ratio of 1.51 indicates that HEI.A should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, HEI.A is in line with its industry, outperforming 57.75% of the companies in the same 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 34.02%, 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 8.90% on average per year.
The Revenue has grown by 13.46% in the past year. This is quite good.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
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.A is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.94% yearly.
The Revenue is expected to grow by 10.46% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 53.86, HEI.A can be considered very expensive at the moment.
HEI.A's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.03. HEI.A is valued rather expensively when compared to this.
HEI.A is valuated quite expensively with a Price/Forward Earnings ratio of 45.57.
HEI.A's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, HEI.A is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.86 | ||
| Fwd PE | 45.57 |
4.2 Price Multiples
HEI.A's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HEI.A is valued a bit cheaper than 71.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.79 | ||
| EV/EBITDA | 31.68 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HEI.A may justify a higher PE ratio.
HEI.A's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)6.05
EPS Next 2Y21.47%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, HEI.A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.10, HEI.A pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, HEI.A'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.A grows each year by 8.47%, which is quite nice.
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)8.47%
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 2Y21.47%
EPS Next 3Y18.44%
246.12
+0.19 (+0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change-1.08%
Ins Owners22.66%
Ins Owner ChangeN/A
Market Cap34.26B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target276.42 (12.31%)
Short Float %N/A
Short RatioN/A
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)-1.97%
PT rev (3m)7.78%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.86 | ||
| Fwd PE | 45.57 | ||
| P/S | 7.99 | ||
| P/FCF | 43.79 | ||
| P/OCF | 40.57 | ||
| P/B | 8.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.68 |
EPS(TTM)4.57
EY1.86%
EPS(NY)5.4
Fwd EY2.19%
FCF(TTM)5.62
FCFY2.28%
OCF(TTM)6.07
OCFY2.46%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)1.7
PEG (5Y)6.05
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 | 6.36 |
F-Score8
WACC9.57%
ROIC/WACC1.04
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-CLASS A / HEI.A FAQ
What is the fundamental rating for HEI.A stock?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.A.
Can you provide the valuation status for HEICO CORP-CLASS A?
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 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 31.63% in the next year.