HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
263.18 USD
+1.96 (+0.75%)
263.18 USD
0 (0%)
We assign a fundamental rating of 5 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.
HEI.A had positive earnings in 4 of the past 5 years.
HEI.A had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HEI.A has a better Return On Assets (7.52%) than 83.10% of its industry peers.
Looking at the Return On Equity, with a value of 15.50%, HEI.A belongs to the top 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.
Measured over the past 3 years, the Average Return On Invested Capital for HEI.A is in line with the industry average of 8.60%.
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
HEI.A has a Profit Margin of 14.96%. This is amongst the best in the industry. HEI.A outperforms 94.37% of its industry peers.
HEI.A's Profit Margin has declined in the last couple of years.
HEI.A has a Operating Margin of 22.38%. This is amongst the best in the industry. HEI.A outperforms 94.37% of its industry peers.
HEI.A's Operating Margin has been stable in the last couple of years.
HEI.A has a better Gross Margin (39.51%) than 78.87% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI.A is still creating some value.
There is no outstanding debt for HEI.A. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.65 indicates that HEI.A is not in any danger for bankruptcy at the moment.
HEI.A's Altman-Z score of 6.65 is fine compared to the rest of the industry. HEI.A outperforms 64.79% of its industry peers.
HEI.A has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as HEI.A would need 3.13 years to pay back of all of its debts.
HEI.A has a better Debt to FCF ratio (3.13) than 85.92% of its industry peers.
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's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. HEI.A is outperformed by 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 6.65 |
ROIC/WACC1.03
WACC9.69%
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 Current ratio of 3.35. This is in the better half of the industry: HEI.A outperforms 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 53.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
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 34.15%, which is quite impressive.
The Earnings Per Share has been growing by 16.48% on average over the past years. This is quite good.
EPS 1Y (TTM)34.15%
EPS 3Y24.41%
EPS 5Y16.48%
EPS Q2Q%34.34%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
3.2 Future
HEI.A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.06% yearly.
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 Y11.53%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
EPS Next 5Y19.06%
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
HEI.A is valuated quite expensively with a Price/Earnings ratio of 53.60.
The rest of the industry has a similar Price/Earnings ratio as HEI.A.
When comparing the Price/Earnings ratio of HEI.A to the average of the S&P500 Index (26.61), we can say HEI.A is valued expensively.
With a Price/Forward Earnings ratio of 48.06, 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.
When comparing the Price/Forward Earnings ratio of HEI.A to the average of the S&P500 Index (24.01), we can say HEI.A is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.6 | ||
| Fwd PE | 48.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HEI.A.
HEI.A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HEI.A is cheaper than 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.82 | ||
| EV/EBITDA | 33.53 |
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 decent profitability rating of HEI.A may justify a higher PE ratio.
PEG (NY)4.65
PEG (5Y)3.25
EPS Next 2Y12.68%
EPS Next 3Y11.52%
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 0.41.
Compared to an average S&P500 Dividend Yield of 1.87, HEI.A's dividend is way lower than the S&P500 average.
| 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 8.47%!
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)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.
HEI.A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.98%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
263.18
+1.96 (+0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.05%
Inst Owner Change-6.39%
Ins Owners15.53%
Ins Owner ChangeN/A
Market Cap36.64B
Revenue(TTM)N/A
Net Income(TTM)641.78M
Analysts78.33
Price Target286.32 (8.79%)
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)3.7%
PT rev (3m)1.54%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.6 | ||
| Fwd PE | 48.06 | ||
| P/S | 8.54 | ||
| P/FCF | 46.82 | ||
| P/OCF | 43.38 | ||
| P/B | 8.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.53 |
EPS(TTM)4.91
EY1.87%
EPS(NY)5.48
Fwd EY2.08%
FCF(TTM)5.62
FCFY2.14%
OCF(TTM)6.07
OCFY2.31%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)4.65
PEG (5Y)3.25
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 | 6.65 |
F-Score8
WACC9.69%
ROIC/WACC1.03
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)34.15%
EPS 3Y24.41%
EPS 5Y16.48%
EPS Q2Q%34.34%
EPS Next Y11.53%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
EPS Next 5Y19.06%
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 Year44.7%
EBIT Next 3Y20.21%
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
What is the fundamental rating for HEI.A stock?
ChartMill assigns a fundamental rating of 5 / 10 to HEI.A.
Can you provide the valuation status for HEICO CORP-CLASS A?
ChartMill assigns a valuation rating of 2 / 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 7 / 10.
What is the financial health of HEICO CORP-CLASS A (HEI.A) stock?
The financial health rating of HEICO CORP-CLASS A (HEI.A) is 6 / 10.
What is the expected EPS growth for HEICO CORP-CLASS A (HEI.A) stock?
The Earnings per Share (EPS) of HEICO CORP-CLASS A (HEI.A) is expected to grow by 11.53% in the next year.