HEICO CORP (HEI) Stock Fundamental Analysis
NYSE:HEI - New York Stock Exchange, Inc. - US4228061093 - Common Stock - Currency: USD
Taking everything into account, HEI scores 6 out of 10 in our fundamental rating. HEI was compared to 65 industry peers in the Aerospace & Defense industry. HEI scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, HEI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
HEI had positive earnings in the past year.
HEI had a positive operating cash flow in the past year.
Each year in the past 5 years HEI has been profitable.
HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEI has a better Return On Assets (7.19%) than 74.60% of its industry peers.
With a decent Return On Equity value of 15.14%, HEI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
The Return On Invested Capital of HEI (9.82%) is better than 79.37% of its industry peers.
HEI had an Average Return On Invested Capital over the past 3 years of 9.51%. This is in line with the industry average of 7.99%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(9.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 15.14% | ||
| ROIC | 9.82% |
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
The Profit Margin of HEI (14.21%) is better than 85.71% of its industry peers.
In the last couple of years the Profit Margin of HEI has declined.
The Operating Margin of HEI (22.01%) is better than 93.65% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
The Gross Margin of HEI (39.10%) is better than 80.95% of its industry peers.
In the last couple of years the Gross Margin of HEI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.01% | ||
| PM (TTM) | 14.21% | ||
| GM | 39.1% |
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 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HEI has more shares outstanding than it did 1 year ago.
HEI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HEI has been reduced compared to a year ago.
2.2 Solvency
HEI has an Altman-Z score of 7.01. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HEI (7.01) is better than 84.13% of its industry peers.
The Debt to FCF ratio of HEI is 3.35, which is a good value as it means it would take HEI, 3.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.35, HEI is doing good in the industry, outperforming 79.37% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that HEI is somewhat dependend on debt financing.
The Debt to Equity ratio of HEI (0.63) is worse than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.35 | ||
| Altman-Z | 7.01 |
ROIC/WACC1.07
WACC9.17%
2.3 Liquidity
HEI has a Current Ratio of 3.40. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
HEI's Current ratio of 3.40 is fine compared to the rest of the industry. HEI outperforms 77.78% of its industry peers.
HEI has a Quick Ratio of 1.43. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.43, HEI perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.74% over the past year.
HEI 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 shows a very strong growth in Revenue. The Revenue has grown by 23.06%.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
EPS 1Y (TTM)30.74%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%46.34%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.93%
3.2 Future
The Earnings Per Share is expected to grow by 14.94% on average over the next years. This is quite good.
Based on estimates for the next years, HEI will show a small growth in Revenue. The Revenue will grow by 7.42% on average per year.
EPS Next Y17.36%
EPS Next 2Y15.8%
EPS Next 3Y14.77%
EPS Next 5Y14.94%
Revenue Next Year8.02%
Revenue Next 2Y7.62%
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 65.71, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Earnings ratio as HEI.
Compared to an average S&P500 Price/Earnings ratio of 29.41, HEI is valued quite expensively.
Based on the Price/Forward Earnings ratio of 54.10, the valuation of HEI can be described as expensive.
HEI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.12. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.71 | ||
| Fwd PE | 54.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HEI is valued a bit more expensive than the industry average as 60.32% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI indicates a somewhat cheap valuation: HEI is cheaper than 65.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.55 | ||
| EV/EBITDA | 37.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of HEI may justify a higher PE ratio.
HEI's earnings are expected to grow with 14.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.79
PEG (5Y)7.39
EPS Next 2Y15.8%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, HEI is not a good candidate for dividend investing.
HEI's Dividend Yield is a higher than the industry average which is at 1.44.
With a Dividend Yield of 0.08, HEI pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
The dividend of HEI is nicely growing with an annual growth rate of 8.45%!
HEI has been paying a dividend for at least 10 years, so it has a reliable track record.
As HEI 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 pays out 5.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of HEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP5.38%
EPS Next 2Y15.8%
EPS Next 3Y14.77%
265.48
-0.37 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.06%
Inst Owner Change63.7%
Ins Owners22.7%
Ins Owner Change10.3%
Market Cap36.87B
Analysts75.83
Price Target277.12 (4.38%)
Short Float %5.47%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.63%
Min EPS beat(2)-0.23%
Max EPS beat(2)25.49%
EPS beat(4)3
Avg EPS beat(4)9.32%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)7.56%
EPS beat(12)9
Avg EPS beat(12)3.97%
EPS beat(16)13
Avg EPS beat(16)3.93%
Revenue beat(2)1
Avg Revenue beat(2)0.7%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)4.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)8
Avg Revenue beat(12)1.07%
Revenue beat(16)9
Avg Revenue beat(16)0.69%
PT rev (1m)0%
PT rev (3m)0.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.71 | ||
| Fwd PE | 54.1 | ||
| P/S | 9.24 | ||
| P/FCF | 52.55 | ||
| P/OCF | 48.27 | ||
| P/B | 9.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.01 |
EPS(TTM)4.04
EY1.52%
EPS(NY)4.91
Fwd EY1.85%
FCF(TTM)5.05
FCFY1.9%
OCF(TTM)5.5
OCFY2.07%
SpS28.74
BVpS26.98
TBVpS-8.58
PEG (NY)3.79
PEG (5Y)7.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 15.14% | ||
| ROCE | 12.08% | ||
| ROIC | 9.82% | ||
| ROICexc | 10.05% | ||
| ROICexgc | 32.92% | ||
| OM | 22.01% | ||
| PM (TTM) | 14.21% | ||
| GM | 39.1% | ||
| FCFM | 17.58% |
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 | 0.63 | ||
| Debt/FCF | 3.35 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 34.94% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.28% | ||
| Profit Quality | 123.65% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 7.01 |
F-Score9
WACC9.17%
ROIC/WACC1.07
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)30.74%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%46.34%
EPS Next Y17.36%
EPS Next 2Y15.8%
EPS Next 3Y14.77%
EPS Next 5Y14.94%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.93%
Revenue Next Year8.02%
Revenue Next 2Y7.62%
Revenue Next 3Y7.23%
Revenue Next 5Y7.42%
EBIT growth 1Y29.93%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year33.76%
EBIT Next 3Y15.65%
EBIT Next 5Y13.92%
FCF growth 1Y62.2%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y63.68%
OCF growth 3Y14.83%
OCF growth 5Y8.98%