HEICO CORP-CLASS A (HEI.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI.A - US4228062083 - Common Stock
261.35 USD
+2.4 (+0.93%)
261.34 USD
-0.01 (0%)
HEI.A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. While HEI.A has a great profitability rating, 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 would make HEI.A suitable for growth 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.
- HEI.A had positive earnings in each of the past 5 years.
- Each year in the past 5 years HEI.A had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of HEI.A (8.12%) is better than 86.30% of its industry peers.
- HEI.A has a Return On Equity of 16.04%. This is amongst the best in the industry. HEI.A outperforms 82.19% of its industry peers.
- With an excellent Return On Invested Capital value of 11.03%, HEI.A belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HEI.A is in line with the industry average of 8.56%.
- The last Return On Invested Capital (11.03%) for HEI.A is above the 3 year average (9.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROIC | 11.03% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.39%, HEI.A belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of HEI.A has declined.
- HEI.A has a Operating Margin of 22.72%. This is amongst the best in the industry. HEI.A outperforms 93.15% of its industry peers.
- In the last couple of years the Operating Margin of HEI.A has grown nicely.
- HEI.A's Gross Margin of 39.83% is amongst the best of the industry. HEI.A outperforms 80.82% of its industry peers.
- 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 | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% |
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
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.
- The number of shares outstanding for HEI.A has been increased compared to 1 year ago.
- Compared to 5 years ago, HEI.A has more shares outstanding
- Compared to 1 year ago, HEI.A has an improved debt to assets ratio.
2.2 Solvency
- HEI.A has an Altman-Z score of 6.94. 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 6.94, HEI.A is doing good in the industry, outperforming 65.75% of the companies in the same industry.
- HEI.A has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as HEI.A would need 2.52 years to pay back of all of its debts.
- HEI.A has a Debt to FCF ratio of 2.52. This is amongst the best in the industry. HEI.A outperforms 89.04% of its industry peers.
- HEI.A has a Debt/Equity ratio of 0.50. This is a neutral value indicating HEI.A is somewhat dependend on debt financing.
- HEI.A has a Debt to Equity ratio (0.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 6.94 |
ROIC/WACC1.1
WACC10.06%
2.3 Liquidity
- HEI.A has a Current Ratio of 2.83. This indicates that HEI.A is financially healthy and has no problem in meeting its short term obligations.
- HEI.A's Current ratio of 2.83 is in line compared to the rest of the industry. HEI.A outperforms 54.79% of its industry peers.
- A Quick Ratio of 1.28 indicates that HEI.A should not have too much problems paying its short term obligations.
- HEI.A's Quick ratio of 1.28 is on the low side compared to the rest of the industry. HEI.A is outperformed by 60.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 34.29% over the past year.
- The Earnings Per Share has been growing by 16.50% on average over the past years. This is quite good.
- Looking at the last year, HEI.A shows a quite strong growth in Revenue. The Revenue has grown by 16.26% in the last year.
- The Revenue has been growing by 20.21% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
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 18.60% on average per year.
- HEI.A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
EPS Next Y13.62%
EPS Next 2Y13.09%
EPS Next 3Y13.52%
EPS Next 5Y18.6%
Revenue Next Year11.72%
Revenue Next 2Y9.93%
Revenue Next 3Y9.05%
Revenue Next 5Y10.46%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 53.23, the valuation of HEI.A can be described as expensive.
- HEI.A's Price/Earnings ratio is in line with the industry average.
- HEI.A's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 46.80, the valuation of HEI.A can be described as expensive.
- 60.27% of the companies in the same industry are more expensive than HEI.A, based on the Price/Forward Earnings ratio.
- HEI.A is valuated expensively when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.23 | ||
| Fwd PE | 46.8 |
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 78.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.24 | ||
| EV/EBITDA | 31.55 |
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.
- HEI.A's earnings are expected to grow with 13.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.91
PEG (5Y)3.23
EPS Next 2Y13.09%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
- HEI.A has a yearly dividend return of 0.07%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.34, HEI.A pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.07, HEI.A pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
- On average, the dividend of HEI.A grows each year by 7.53%, 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)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- HEI.A pays out 4.63% 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.
DP4.63%
EPS Next 2Y13.09%
EPS Next 3Y13.52%
HEICO CORP-CLASS A / HEI.A FAQ
Can you provide the ChartMill fundamental rating for HEICO CORP-CLASS A?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.A.
What is the valuation status of HEICO CORP-CLASS A (HEI.A) stock?
ChartMill assigns a valuation rating of 3 / 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 8 / 10.
What is the earnings growth outlook for HEICO CORP-CLASS A?
The Earnings per Share (EPS) of HEICO CORP-CLASS A (HEI.A) is expected to grow by 13.62% in the next year.
Can you provide the dividend sustainability for HEI.A stock?
The dividend rating of HEICO CORP-CLASS A (HEI.A) is 6 / 10 and the dividend payout ratio is 4.63%.