HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
271.06 USD
-3.55 (-1.29%)
271.06 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. 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. These ratings would make HEI.A suitable for growth investing!
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.
HEI.A had positive earnings in each of the past 5 years.
Each year in the past 5 years HEI.A had a positive operating cash flow.
1.2 Ratios
HEI.A has a Return On Assets of 8.12%. This is amongst the best in the industry. HEI.A outperforms 85.92% of its industry peers.
HEI.A has a better Return On Equity (16.04%) than 81.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.03%, HEI.A belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HEI.A is in line with the industry average of 8.54%.
The last Return On Invested Capital (11.03%) for HEI.A is above the 3 year average (9.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROIC | 11.03% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
1.3 Margins
With an excellent Profit Margin value of 15.39%, 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 Profit Margin of HEI.A has declined.
The Operating Margin of HEI.A (22.72%) is better than 92.96% of its industry peers.
In the last couple of years the Operating Margin of HEI.A has grown nicely.
Looking at the Gross Margin, with a value of 39.83%, HEI.A belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
HEI.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% |
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI.A is creating some value.
The number of shares outstanding for HEI.A has been increased compared to 1 year ago.
HEI.A has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HEI.A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.21 indicates that HEI.A is not in any danger for bankruptcy at the moment.
HEI.A's Altman-Z score of 7.21 is fine compared to the rest of the industry. HEI.A outperforms 67.61% of its industry peers.
HEI.A has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as HEI.A would need 2.52 years to pay back of all of its debts.
The Debt to FCF ratio of HEI.A (2.52) is better than 88.73% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that HEI.A is somewhat dependend on debt financing.
HEI.A has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: HEI.A outperforms 49.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 7.21 |
ROIC/WACC1.16
WACC9.47%
2.3 Liquidity
A Current Ratio of 2.83 indicates that HEI.A has no problem at all paying its short term obligations.
The Current ratio of HEI.A (2.83) is comparable to the rest of the industry.
A Quick Ratio of 1.28 indicates that HEI.A should not have too much problems paying its short term obligations.
The Quick ratio of HEI.A (1.28) is worse than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 |
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.
The Earnings Per Share has been growing by 16.50% on average over the past years. This is quite good.
Looking at the last year, HEI.A shows a quite strong growth in Revenue. The Revenue has grown by 16.26% in the last year.
HEI.A shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.21% yearly.
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
3.2 Future
The Earnings Per Share is expected to grow by 18.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.50% on average over the next years. This is quite good.
EPS Next Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y18.6%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y10.5%
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.
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
HEI.A is valuated quite expensively with a Price/Earnings ratio of 55.21.
HEI.A's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, HEI.A is valued quite expensively.
HEI.A is valuated quite expensively with a Price/Forward Earnings ratio of 49.50.
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 (24.04), we can say HEI.A is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.21 | ||
| Fwd PE | 49.5 |
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.
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 73.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.81 | ||
| EV/EBITDA | 33.07 |
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)4.83
PEG (5Y)3.35
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.
Compared to an average industry Dividend Yield of 0.37, HEI.A pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.07, HEI.A pays less dividend than the S&P500 average, which is at 1.92.
| 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 7.53%!
HEI.A has paid a dividend for at least 10 years, which is 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)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
4.63% 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.
DP4.63%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
271.06
-3.55 (-1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73%
Inst Owner Change0.02%
Ins Owners15.5%
Ins Owner ChangeN/A
Market Cap37.73B
Revenue(TTM)4.49B
Net Income(TTM)690.38M
Analysts79.2
Price Target286.32 (5.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
Yearly Dividend0.23
Dividend Growth(5Y)7.53%
DP4.63%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.72%
Min EPS beat(2)5.63%
Max EPS beat(2)9.81%
EPS beat(4)4
Avg EPS beat(4)12.08%
Min EPS beat(4)5.63%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.74%
EPS beat(12)10
Avg EPS beat(12)6.64%
EPS beat(16)13
Avg EPS beat(16)4.65%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.03%
Max Revenue beat(2)1.83%
Revenue beat(4)4
Avg Revenue beat(4)2.07%
Min Revenue beat(4)0.03%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)1.21%
Revenue beat(16)11
Avg Revenue beat(16)0.94%
PT rev (1m)3.1%
PT rev (3m)0.88%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.21 | ||
| Fwd PE | 49.5 | ||
| P/S | 8.41 | ||
| P/FCF | 43.81 | ||
| P/OCF | 40.39 | ||
| P/B | 8.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.07 |
EPS(TTM)4.91
EY1.81%
EPS(NY)5.48
Fwd EY2.02%
FCF(TTM)6.19
FCFY2.28%
OCF(TTM)6.71
OCFY2.48%
SpS32.22
BVpS30.93
TBVpS-5.95
PEG (NY)4.83
PEG (5Y)3.35
Graham Number58.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROCE | 13.29% | ||
| ROIC | 11.03% | ||
| ROICexc | 11.35% | ||
| ROICexgc | 36.48% | ||
| OM | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% | ||
| FCFM | 19.21% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
ROICexc(3y)9.9%
ROICexc(5y)10.38%
ROICexgc(3y)33.39%
ROICexgc(5y)33.47%
ROCE(3y)11.62%
ROCE(5y)12.13%
ROICexgc growth 3Y-0.02%
ROICexgc growth 5Y1.82%
ROICexc growth 3Y-0.9%
ROICexc growth 5Y1.04%
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 37.17% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 7.9 | ||
| Cash Conversion | 76.89% | ||
| Profit Quality | 124.77% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 7.21 |
F-Score8
WACC9.47%
ROIC/WACC1.16
Cap/Depr(3y)36.14%
Cap/Depr(5y)36.1%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.64%
Profit Quality(3y)114.39%
Profit Quality(5y)120.24%
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 5Y18.6%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y10.5%
EBIT growth 1Y22.48%
EBIT growth 3Y27.05%
EBIT growth 5Y22.02%
EBIT Next Year34.15%
EBIT Next 3Y16.88%
EBIT Next 5Y19.29%
FCF growth 1Y40.27%
FCF growth 3Y25.49%
FCF growth 5Y17.4%
OCF growth 1Y38.95%
OCF growth 3Y25.93%
OCF growth 5Y17.96%
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 7 / 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 4.63%.