HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
245.98 USD
+6.31 (+2.63%)
245.98 USD
0 (0%)
Overall HEI.A gets a fundamental rating of 7 out of 10. We evaluated HEI.A against 71 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 expensive, but it does show an excellent growth. These ratings could make HEI.A a good candidate 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
With an excellent Return On Assets value of 7.52%, HEI.A belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
The Return On Equity of HEI.A (15.50%) is better than 81.69% of its industry peers.
HEI.A has a better Return On Invested Capital (9.98%) than 85.92% 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 8.52%.
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
Looking at the Profit Margin, with a value of 14.96%, HEI.A belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
In the last couple of years the Profit Margin of HEI.A has declined.
HEI.A has a better Operating Margin (22.38%) 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.
The number of shares outstanding for HEI.A has been increased compared to 1 year ago.
The number of shares outstanding for HEI.A has been increased compared to 5 years ago.
HEI.A has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.36 indicates that HEI.A is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.36, HEI.A is doing good in the industry, outperforming 71.83% of the companies in the same industry.
HEI.A has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as HEI.A would need 3.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.13, HEI.A belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
HEI.A has a Debt/Equity ratio of 0.59. This is a neutral value indicating HEI.A is somewhat dependend on debt financing.
The Debt to Equity ratio of HEI.A (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.36 |
ROIC/WACC0.98
WACC10.15%
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.
Looking at the Current ratio, with a value of 3.35, HEI.A is in the better half of the industry, outperforming 69.01% 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
The Earnings Per Share has grown by an impressive 34.02% over the past year.
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.
Measured over the past years, HEI.A shows a quite strong growth in Revenue. The Revenue has been growing by 13.42% on average per year.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.82, the valuation of HEI.A can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as HEI.A.
HEI.A is valuated expensively when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 45.55, HEI.A can be considered very expensive at the moment.
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 35.79, HEI.A is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.82 | ||
| Fwd PE | 45.55 |
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 | 43.76 | ||
| EV/EBITDA | 31.69 |
4.3 Compensation for Growth
HEI.A's 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.
A more expensive valuation may be justified as HEI.A's earnings are expected to grow with 18.44% in the coming years.
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.
HEI.A's Dividend Yield is a higher than the industry average which is at 1.15.
Compared to an average S&P500 Dividend Yield of 2.41, HEI.A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
The dividend of HEI.A is nicely growing with an annual growth rate of 8.47%!
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%
245.98
+6.31 (+2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change-6.4%
Ins Owners22.66%
Ins Owner ChangeN/A
Market Cap34.24B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target278.34 (13.16%)
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)-1.94%
PT rev (3m)8.64%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.5%
EPS NY rev (1m)0%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.82 | ||
| Fwd PE | 45.55 | ||
| P/S | 7.98 | ||
| P/FCF | 43.76 | ||
| P/OCF | 40.55 | ||
| P/B | 8.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.69 |
EPS(TTM)4.57
EY1.86%
EPS(NY)5.4
Fwd EY2.2%
FCF(TTM)5.62
FCFY2.28%
OCF(TTM)6.07
OCFY2.47%
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
WACC10.15%
ROIC/WACC0.98
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.