HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
NYSE:HEI.A - New York Stock Exchange, Inc. - US4228062083 - Common Stock
Taking everything into account, HEI.A scores 6 out of 10 in our fundamental rating. HEI.A was compared to 65 industry peers in the Aerospace & Defense industry. While HEI.A has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, HEI.A is valued expensive at the moment.
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.
Each year in the past 5 years HEI.A has been profitable.
HEI.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEI.A's Return On Assets of 6.77% is fine compared to the rest of the industry. HEI.A outperforms 79.69% of its industry peers.
HEI.A has a Return On Equity of 14.14%. This is in the better half of the industry: HEI.A outperforms 78.13% of its industry peers.
HEI.A has a better Return On Invested Capital (9.76%) than 84.38% of its industry peers.
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 7.64%.
The 3 year average ROIC (9.51%) for HEI.A is below the current ROIC(9.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 14.14% | ||
| ROIC | 9.76% |
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 13.33%, HEI.A belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
HEI.A's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 21.57%, HEI.A belongs to the best of the industry, outperforming 96.88% 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 has a better Gross Margin (38.93%) than 82.81% of its industry peers.
HEI.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.57% | ||
| PM (TTM) | 13.33% | ||
| GM | 38.93% |
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.
HEI.A has more shares outstanding than it did 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 5.60 indicates that HEI.A is not in any danger for bankruptcy at the moment.
HEI.A's Altman-Z score of 5.60 is fine compared to the rest of the industry. HEI.A outperforms 73.44% of its industry peers.
The Debt to FCF ratio of HEI.A is 3.63, which is a good value as it means it would take HEI.A, 3.63 years of fcf income to pay off all of its debts.
HEI.A's Debt to FCF ratio of 3.63 is amongst the best of the industry. HEI.A outperforms 82.81% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that HEI.A is somewhat dependend on debt financing.
HEI.A's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. HEI.A outperforms 45.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 5.6 |
ROIC/WACC1
WACC9.79%
2.3 Liquidity
A Current Ratio of 3.11 indicates that HEI.A has no problem at all paying its short term obligations.
The Current ratio of HEI.A (3.11) is better than 73.44% of its industry peers.
A Quick Ratio of 1.34 indicates that HEI.A should not have too much problems paying its short term obligations.
HEI.A's Quick ratio of 1.34 is in line compared to the rest of the industry. HEI.A outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.49% 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%.
HEI.A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.42% yearly.
EPS 1Y (TTM)24.49%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%33.78%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%8.25%
3.2 Future
Based on estimates for the next years, HEI.A will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.94% on average per year.
The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y18.06%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
EPS Next 5Y14.94%
Revenue Next Year8.07%
Revenue Next 2Y7.68%
Revenue Next 3Y7.36%
Revenue Next 5Y7.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HEI.A is valuated quite expensively with a Price/Earnings ratio of 51.37.
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 27.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 43.52, which means the current valuation is very expensive for HEI.A.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI.A is on the same level as its industry peers.
HEI.A is valuated expensively when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.37 | ||
| Fwd PE | 43.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HEI.A.
Based on the Price/Free Cash Flow ratio, HEI.A is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.51 | ||
| EV/EBITDA | 27.85 |
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.
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 14.01% in the coming years.
PEG (NY)2.85
PEG (5Y)5.77
EPS Next 2Y16.88%
EPS Next 3Y14.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.10%, 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 1.37.
Compared to an average S&P500 Dividend Yield of 2.29, HEI.A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
5.2 History
On average, the dividend of HEI.A grows each year by 8.45%, which is quite nice.
HEI.A has paid a dividend for at least 10 years, which is 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
HEI.A pays out 5.65% 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.
DP5.65%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
HEICO CORP-CLASS A
NYSE:HEI.A (1/17/2025, 8:05:47 PM)
After market: 188.03 0 (0%)188.03
+0.89 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners72.43%
Inst Owner Change-0.03%
Ins Owners22.57%
Ins Owner ChangeN/A
Market Cap26.10B
Analysts76.67
Price Target214.91 (14.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.65%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.7%
Min EPS beat(2)-0.72%
Max EPS beat(2)4.11%
EPS beat(4)3
Avg EPS beat(4)5.28%
Min EPS beat(4)-0.72%
Max EPS beat(4)9.82%
EPS beat(8)6
Avg EPS beat(8)3.85%
EPS beat(12)9
Avg EPS beat(12)2.13%
EPS beat(16)13
Avg EPS beat(16)2.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-3%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-3%
Max Revenue beat(4)-0.55%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)8
Avg Revenue beat(16)0.34%
PT rev (1m)1.92%
PT rev (3m)5.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.37 | ||
| Fwd PE | 43.52 | ||
| P/S | 6.77 | ||
| P/FCF | 42.51 | ||
| P/OCF | 38.82 | ||
| P/B | 7.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.85 |
EPS(TTM)3.66
EY1.95%
EPS(NY)4.32
Fwd EY2.3%
FCF(TTM)4.42
FCFY2.35%
OCF(TTM)4.84
OCFY2.58%
SpS27.79
BVpS26.2
TBVpS-7.77
PEG (NY)2.85
PEG (5Y)5.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 14.14% | ||
| ROCE | 12.01% | ||
| ROIC | 9.76% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 32.95% | ||
| OM | 21.57% | ||
| PM (TTM) | 13.33% | ||
| GM | 38.93% | ||
| FCFM | 15.92% |
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-Score9
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.63 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 33.23% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 5.59 | ||
| Cash Conversion | 66.75% | ||
| Profit Quality | 119.45% | ||
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 5.6 |
F-Score9
WACC9.79%
ROIC/WACC1
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)24.49%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%33.78%
EPS Next Y18.06%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
EPS Next 5Y14.94%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%8.25%
Revenue Next Year8.07%
Revenue Next 2Y7.68%
Revenue Next 3Y7.36%
Revenue Next 5Y7.42%
EBIT growth 1Y33.04%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year34.24%
EBIT Next 3Y15.47%
EBIT Next 5Y13.92%
FCF growth 1Y53.8%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y49.84%
OCF growth 3Y14.83%
OCF growth 5Y8.98%