HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - NYSE:HEI.A - US4228062083 - Common Stock
253.44 USD
+3.06 (+1.22%)
253.44 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HEI.A. HEI.A was compared to 69 industry peers in the Aerospace & Defense industry. HEI.A has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HEI.A is valued quite expensive, but it does show an excellent growth. These ratings would make HEI.A suitable for growth and quality 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.
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
HEI.A's Return On Assets of 7.43% is amongst the best of the industry. HEI.A outperforms 84.06% of its industry peers.
HEI.A's Return On Equity of 15.15% is amongst the best of the industry. HEI.A outperforms 82.61% of its industry peers.
The Return On Invested Capital of HEI.A (10.04%) is better than 85.51% 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 8.29%.
The last Return On Invested Capital (10.04%) for HEI.A is above the 3 year average (9.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 15.15% | ||
| ROIC | 10.04% |
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 (14.54%) than 94.20% of its industry peers.
In the last couple of years the Profit Margin of HEI.A has declined.
HEI.A's Operating Margin of 22.20% is amongst the best of the industry. HEI.A outperforms 94.20% of its industry peers.
HEI.A's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 39.35%, HEI.A belongs to the top of the industry, outperforming 81.16% 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 | 22.2% | ||
| PM (TTM) | 14.54% | ||
| GM | 39.35% |
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) just above the Cost of Capital (WACC), HEI.A is creating some value.
HEI.A has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HEI.A has been increased compared to 5 years ago.
The debt/assets ratio for HEI.A has been reduced compared to a year ago.
2.2 Solvency
HEI.A has an Altman-Z score of 6.83. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.83, HEI.A is in the better half of the industry, outperforming 72.46% of the companies in the same industry.
The Debt to FCF ratio of HEI.A is 2.99, which is a good value as it means it would take HEI.A, 2.99 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HEI.A (2.99) is better than 89.86% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that HEI.A is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, HEI.A perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 6.83 |
ROIC/WACC1.04
WACC9.7%
2.3 Liquidity
HEI.A has a Current Ratio of 3.43. This indicates that HEI.A is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.43, HEI.A is doing good in the industry, outperforming 73.91% of the companies in the same industry.
A Quick Ratio of 1.56 indicates that HEI.A should not have too much problems paying its short term obligations.
HEI.A's Quick ratio of 1.56 is fine compared to the rest of the industry. HEI.A outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.02% over the past year.
HEI.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.90% yearly.
Looking at the last year, HEI.A shows a very strong growth in Revenue. The Revenue has grown by 29.97%.
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)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
3.2 Future
Based on estimates for the next years, HEI.A will show a very strong growth in Earnings Per Share. The EPS will grow by 21.94% 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 10.46% on average per year.
EPS Next Y27.11%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
EPS Next 5Y21.94%
Revenue Next Year13.54%
Revenue Next 2Y11.7%
Revenue Next 3Y10.2%
Revenue Next 5Y10.46%
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 accelerating.
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
A Price/Earnings ratio of 55.46 indicates a quite expensive valuation of HEI.A.
The rest of the industry has a similar Price/Earnings ratio as HEI.A.
The average S&P500 Price/Earnings ratio is at 27.41. HEI.A is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 48.14, the valuation of HEI.A can be described as expensive.
HEI.A's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, HEI.A is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.46 | ||
| Fwd PE | 48.14 |
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 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.3 | ||
| EV/EBITDA | 33.87 |
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.
A more expensive valuation may be justified as HEI.A's earnings are expected to grow with 17.60% in the coming years.
PEG (NY)2.05
PEG (5Y)6.23
EPS Next 2Y19.94%
EPS Next 3Y17.6%
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 1.47.
With a Dividend Yield of 0.07, HEI.A pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
On average, the dividend of HEI.A grows each year by 8.45%, which is quite nice.
HEI.A has been paying a dividend for at least 10 years, so it has 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)8.45%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
5.08% 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.
DP5.08%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
253.44
+3.06 (+1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change0.59%
Ins Owners22.67%
Ins Owner ChangeN/A
Market Cap35.28B
Analysts78.4
Price Target281.98 (11.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.08%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.45%
Min EPS beat(2)7.42%
Max EPS beat(2)25.49%
EPS beat(4)3
Avg EPS beat(4)9.2%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.09%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)13
Avg EPS beat(16)4.06%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)2.31%
Max Revenue beat(2)4.12%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.95%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)9
Avg Revenue beat(16)0.57%
PT rev (1m)10.06%
PT rev (3m)18.31%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)0.5%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.46 | ||
| Fwd PE | 48.14 | ||
| P/S | 8.53 | ||
| P/FCF | 46.3 | ||
| P/OCF | 42.65 | ||
| P/B | 8.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.87 |
EPS(TTM)4.57
EY1.8%
EPS(NY)5.27
Fwd EY2.08%
FCF(TTM)5.47
FCFY2.16%
OCF(TTM)5.94
OCFY2.34%
SpS29.7
BVpS28.5
TBVpS-7.16
PEG (NY)2.05
PEG (5Y)6.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 15.15% | ||
| ROCE | 12.35% | ||
| ROIC | 10.04% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 33.57% | ||
| OM | 22.2% | ||
| PM (TTM) | 14.54% | ||
| GM | 39.35% | ||
| FCFM | 18.43% |
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%
ROICexcg growth 3Y3.12%
ROICexcg 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 35.44% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 126.8% | ||
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 6.83 |
F-Score8
WACC9.7%
ROIC/WACC1.04
Cap/Depr(3y)34.82%
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 Y27.11%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
EPS Next 5Y21.94%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.54%
Revenue Next 2Y11.7%
Revenue Next 3Y10.2%
Revenue Next 5Y10.46%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year41.37%
EBIT Next 3Y18.93%
EBIT Next 5Y20.69%
FCF growth 1Y85.96%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y84.87%
OCF growth 3Y14.83%
OCF growth 5Y8.98%