HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
NYSE:HEI.A - New York Stock Exchange, Inc. - US4228062083 - Common Stock - Currency: USD
HEI.A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 65 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 valued quite expensively, but it does show have an excellent growth rating. 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.
HEI.A had a positive operating cash flow in the past year.
Each year in the past 5 years HEI.A has been profitable.
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 7.43%. This is in the better half of the industry: HEI.A outperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 15.15%, HEI.A belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.04%, HEI.A belongs to the best of the industry, outperforming 84.62% 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 8.44%.
The 3 year average ROIC (9.51%) for HEI.A is below the current ROIC(10.04%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 14.54%, HEI.A belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
HEI.A's Profit Margin has declined in the last couple of years.
The Operating Margin of HEI.A (22.20%) is better than 93.85% 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 39.35%, HEI.A belongs to the best of the industry, outperforming 81.54% 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
HEI.A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
HEI.A has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.69 indicates that HEI.A is not in any danger for bankruptcy at the moment.
The Altman-Z score of HEI.A (6.69) is better than 75.38% of its industry peers.
HEI.A has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as HEI.A would need 2.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.99, HEI.A belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
HEI.A has a Debt/Equity ratio of 0.57. This is a neutral value indicating HEI.A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, HEI.A is in line with its industry, outperforming 49.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 6.69 |
ROIC/WACC0.97
WACC10.39%
2.3 Liquidity
A Current Ratio of 3.43 indicates that HEI.A has no problem at all paying its short term obligations.
HEI.A has a better Current ratio (3.43) than 73.85% of its industry peers.
HEI.A has a Quick Ratio of 1.56. 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 1.56, HEI.A is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 |
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 33.33%, which is quite impressive.
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.
The Revenue has grown by 17.74% in the past year. This is quite good.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
EPS 1Y (TTM)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
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 21.41% yearly.
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y25.99%
EPS Next 2Y19.43%
EPS Next 3Y17.4%
EPS Next 5Y21.41%
Revenue Next Year11.64%
Revenue Next 2Y9.99%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
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.
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
A Price/Earnings ratio of 57.72 indicates a quite expensive valuation of HEI.A.
The rest of the industry has a similar Price/Earnings ratio as HEI.A.
HEI.A's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 47.32, HEI.A can be considered very expensive at the moment.
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 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.72 | ||
| Fwd PE | 47.32 |
4.2 Price Multiples
HEI.A's Enterprise Value to EBITDA ratio is in line with the industry average.
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 70.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.05 | ||
| EV/EBITDA | 33.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 17.40% in the coming years.
PEG (NY)2.22
PEG (5Y)6.49
EPS Next 2Y19.43%
EPS Next 3Y17.4%
5. Dividend
5.1 Amount
With a yearly dividend of 0.07%, 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 1.24.
With a Dividend Yield of 0.07, HEI.A pays less dividend than the S&P500 average, which is at 2.37.
| 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.
HEI.A has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y19.43%
EPS Next 3Y17.4%
247.06
-6.98 (-2.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners71.77%
Inst Owner Change0%
Ins Owners22.67%
Ins Owner ChangeN/A
Market Cap34.33B
Analysts77.5
Price Target243.28 (-1.53%)
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)2.07%
PT rev (3m)8.31%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)2.66%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.72 | ||
| Fwd PE | 47.32 | ||
| P/S | 8.3 | ||
| P/FCF | 45.05 | ||
| P/OCF | 41.49 | ||
| P/B | 8.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.01 |
EPS(TTM)4.28
EY1.73%
EPS(NY)5.22
Fwd EY2.11%
FCF(TTM)5.48
FCFY2.22%
OCF(TTM)5.95
OCFY2.41%
SpS29.75
BVpS28.55
TBVpS-7.17
PEG (NY)2.22
PEG (5Y)6.49
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 | 6.69 |
F-Score8
WACC10.39%
ROIC/WACC0.97
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)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
EPS Next Y25.99%
EPS Next 2Y19.43%
EPS Next 3Y17.4%
EPS Next 5Y21.41%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
Revenue Next Year11.64%
Revenue Next 2Y9.99%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year37.56%
EBIT Next 3Y17.14%
EBIT Next 5Y20.23%
FCF growth 1Y85.96%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y84.87%
OCF growth 3Y14.83%
OCF growth 5Y8.98%