HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
273.16 USD
+1.91 (+0.7%)
273.16 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HEI.A. HEI.A was compared to 71 industry peers in the Aerospace & Defense industry. HEI.A has an excellent profitability rating, but 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
HEI.A had positive earnings in the past year.
In the past year HEI.A had a positive cash flow from operations.
Of the past 5 years HEI.A 4 years were profitable.
HEI.A had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.52%, HEI.A belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
With an excellent Return On Equity value of 15.50%, HEI.A belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.98%, HEI.A belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
HEI.A had an Average Return On Invested Capital over the past 3 years of 9.51%. This is in line with the industry average of 8.63%.
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
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.
With an excellent Operating Margin value of 22.38%, HEI.A belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
In the last couple of years the Operating Margin of HEI.A has remained more or less at the same level.
HEI.A's Gross Margin of 39.51% is amongst the best of the industry. HEI.A outperforms 80.28% 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) below the Cost of Capital (WACC), 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 6.84. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HEI.A (6.84) is better than 66.20% 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.
With an excellent Debt to FCF ratio value of 3.13, HEI.A belongs to the best of the industry, outperforming 85.92% 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.
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 | 6.84 |
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.
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.
Looking at the Quick ratio, with a value of 1.51, HEI.A is in line with its industry, outperforming 54.93% of the companies in the same 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 34.29% over the past year.
The Earnings Per Share has been growing by 16.50% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 19.03% on average over the next years. This is quite good.
HEI.A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.63% yearly.
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
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
Based on the Price/Earnings ratio of 55.63, the valuation of HEI.A can be described as expensive.
HEI.A's Price/Earnings ratio is in line with the industry average.
HEI.A is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 49.88, 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.
When comparing the Price/Forward Earnings ratio of HEI.A to the average of the S&P500 Index (23.88), we can say HEI.A is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.63 | ||
| Fwd PE | 49.88 |
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 the industry average as 66.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.6 | ||
| EV/EBITDA | 34.75 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.87
PEG (5Y)3.37
EPS Next 2Y12.63%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
HEI.A has a yearly dividend return of 0.07%, which is pretty low.
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 1.94.
| 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 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
4.98% of the earnings are spent on dividend by HEI.A. This is a low number and 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 2Y12.63%
EPS Next 3Y11.48%
273.16
+1.91 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73%
Inst Owner Change0%
Ins Owners15.5%
Ins Owner ChangeN/A
Market Cap38.03B
Revenue(TTM)N/A
Net Income(TTM)641.78M
Analysts78.33
Price Target286.32 (4.82%)
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)0.38%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.63 | ||
| Fwd PE | 49.88 | ||
| P/S | 8.87 | ||
| P/FCF | 48.6 | ||
| P/OCF | 45.03 | ||
| P/B | 9.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.75 |
EPS(TTM)4.91
EY1.8%
EPS(NY)5.48
Fwd EY2%
FCF(TTM)5.62
FCFY2.06%
OCF(TTM)6.07
OCFY2.22%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)4.87
PEG (5Y)3.37
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 | 6.84 |
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)34.29%
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%.