HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
NYSE:HEI.A - New York Stock Exchange, Inc. - US4228062083 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to HEI.A. HEI.A was compared to 65 industry peers in the Aerospace & Defense industry. HEI.A scores excellent on profitability, 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
In the past year HEI.A was profitable.
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
Looking at the Return On Assets, with a value of 6.77%, HEI.A is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.14%, HEI.A is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.76%, HEI.A belongs to the top of the industry, outperforming 81.25% 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 7.98%.
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 85.94% of the companies in the same industry.
HEI.A's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.57%, HEI.A belongs to the top of the industry, outperforming 95.31% 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.
The Gross Margin of HEI.A (38.93%) is better 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI.A is creating some value.
Compared to 1 year ago, HEI.A has more shares outstanding
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
HEI.A has an Altman-Z score of 5.50. This indicates that HEI.A is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.50, HEI.A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
HEI.A has a debt to FCF ratio of 3.63. This is a good value and a sign of high solvency as HEI.A would need 3.63 years to pay back of all of its debts.
HEI.A has a better Debt to FCF ratio (3.63) than 78.13% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that HEI.A is somewhat dependend on debt financing.
HEI.A has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 5.5 |
ROIC/WACC1.05
WACC9.31%
2.3 Liquidity
A Current Ratio of 3.11 indicates that HEI.A has no problem at all paying its short term obligations.
HEI.A's Current ratio of 3.11 is fine compared to the rest of the industry. HEI.A outperforms 73.44% of its industry peers.
HEI.A has a Quick Ratio of 1.34. This is a normal value and indicates that HEI.A is financially healthy and should not expect problems in meeting its short term obligations.
HEI.A has a Quick ratio (1.34) which is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
HEI.A shows a strong growth in Revenue. In the last year, 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)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 Y17.36%
EPS Next 2Y15.8%
EPS Next 3Y14.77%
EPS Next 5Y14.94%
Revenue Next Year8.05%
Revenue Next 2Y7.61%
Revenue Next 3Y7.23%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 49.91, which means the current valuation is very expensive for HEI.A.
Compared to the rest of the industry, the Price/Earnings ratio of HEI.A is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HEI.A to the average of the S&P500 Index (29.63), we can say HEI.A is valued expensively.
Based on the Price/Forward Earnings ratio of 42.53, the valuation of HEI.A can be described as expensive.
HEI.A's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HEI.A to the average of the S&P500 Index (22.68), we can say HEI.A is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.91 | ||
| Fwd PE | 42.53 |
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.
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 | 41.31 | ||
| EV/EBITDA | 27.2 |
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 14.77% in the coming years.
PEG (NY)2.88
PEG (5Y)5.61
EPS Next 2Y15.8%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.10%, HEI.A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.45, HEI.A pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.10, HEI.A pays less dividend than the S&P500 average, which is at 2.29.
| 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 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
HEI.A pays out 5.65% of its income as dividend. This is a sustainable payout ratio.
The dividend of HEI.A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5.65%
EPS Next 2Y15.8%
EPS Next 3Y14.77%
182.68
+0.3 (+0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners72.43%
Inst Owner Change-0.31%
Ins Owners22.57%
Ins Owner ChangeN/A
Market Cap25.37B
Analysts76.52
Price Target215.77 (18.11%)
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)1.94%
Min EPS beat(2)-0.23%
Max EPS beat(2)4.11%
EPS beat(4)3
Avg EPS beat(4)5.41%
Min EPS beat(4)-0.23%
Max EPS beat(4)9.82%
EPS beat(8)6
Avg EPS beat(8)3.91%
EPS beat(12)9
Avg EPS beat(12)2.17%
EPS beat(16)13
Avg EPS beat(16)2.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)-0.55%
Revenue beat(8)4
Avg Revenue beat(8)0.77%
Revenue beat(12)7
Avg Revenue beat(12)0.56%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)0.4%
PT rev (3m)2.72%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.91 | ||
| Fwd PE | 42.53 | ||
| P/S | 6.58 | ||
| P/FCF | 41.31 | ||
| P/OCF | 37.73 | ||
| P/B | 6.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.2 |
EPS(TTM)3.66
EY2%
EPS(NY)4.3
Fwd EY2.35%
FCF(TTM)4.42
FCFY2.42%
OCF(TTM)4.84
OCFY2.65%
SpS27.78
BVpS26.19
TBVpS-7.76
PEG (NY)2.88
PEG (5Y)5.61
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 | 5.5 |
F-Score9
WACC9.31%
ROIC/WACC1.05
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 Y17.36%
EPS Next 2Y15.8%
EPS Next 3Y14.77%
EPS Next 5Y14.94%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%8.25%
Revenue Next Year8.05%
Revenue Next 2Y7.61%
Revenue Next 3Y7.23%
Revenue Next 5Y7.42%
EBIT growth 1Y33.04%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year33.76%
EBIT Next 3Y15.65%
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%