HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
356.74 USD
+3.18 (+0.9%)
356.74 USD
0 (0%)
Overall HEI gets a fundamental rating of 7 out of 10. We evaluated HEI against 71 industry peers in the Aerospace & Defense industry. HEI has an excellent profitability rating, but there are some minor concerns on its financial health. HEI shows excellent growth, but is valued quite expensive already. These ratings could make HEI a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year HEI was profitable.
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
The Return On Assets of HEI (8.12%) is better than 84.51% of its industry peers.
HEI has a better Return On Equity (16.04%) than 80.28% of its industry peers.
The Return On Invested Capital of HEI (11.03%) is better than 84.51% of its industry peers.
HEI had an Average Return On Invested Capital over the past 3 years of 9.64%. This is in line with the industry average of 8.54%.
The 3 year average ROIC (9.64%) for HEI is below the current ROIC(11.03%), indicating increased profibility in the last year.
| 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 belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
In the last couple of years the Profit Margin of HEI has declined.
Looking at the Operating Margin, with a value of 22.72%, HEI belongs to the top of the industry, outperforming 91.55% of the companies in the same industry.
HEI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 39.83%, HEI is doing good in the industry, outperforming 78.87% of the companies in the same industry.
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 | 22.72% | ||
| 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 is still creating some value.
The number of shares outstanding for HEI has been increased compared to 1 year ago.
The number of shares outstanding for HEI has been increased compared to 5 years ago.
Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
HEI has an Altman-Z score of 8.78. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
HEI has a Altman-Z score of 8.78. This is in the better half of the industry: HEI outperforms 76.06% of its industry peers.
The Debt to FCF ratio of HEI is 2.52, which is a good value as it means it would take HEI, 2.52 years of fcf income to pay off all of its debts.
HEI has a better Debt to FCF ratio (2.52) than 87.32% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that HEI is somewhat dependend on debt financing.
HEI has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: HEI outperforms 47.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 8.78 |
ROIC/WACC1.17
WACC9.46%
2.3 Liquidity
HEI has a Current Ratio of 2.83. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
HEI has a Current ratio (2.83) which is in line with its industry peers.
HEI has a Quick Ratio of 1.28. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
HEI's Quick ratio of 1.28 is on the low side compared to the rest of the industry. HEI is outperformed by 61.97% 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.
HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.50% yearly.
Looking at the last year, HEI shows a quite strong growth in Revenue. The Revenue has grown by 16.26% in the last year.
HEI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.21% yearly.
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
The Earnings Per Share is expected to grow by 18.60% on average over the next years. This is quite good.
HEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.50% yearly.
EPS Next Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y18.6%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y10.5%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 72.66, which means the current valuation is very expensive for HEI.
HEI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.25. HEI is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 65.14 indicates a quite expensive valuation of HEI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI is on the same level as its industry peers.
HEI is valuated expensively when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.66 | ||
| Fwd PE | 65.14 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HEI is valued a bit cheaper than 60.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.65 | ||
| EV/EBITDA | 42.11 |
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 excellent profitability rating of HEI may justify a higher PE ratio.
PEG (NY)6.36
PEG (5Y)4.4
EPS Next 2Y12.63%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.07%, which is pretty low.
Compared to an average industry Dividend Yield of 0.37, HEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
On average, the dividend of HEI grows each year by 7.53%, which is quite nice.
HEI has been paying a dividend for at least 10 years, so it has a reliable track record.
HEI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI pays out 4.63% of its income as dividend. This is a sustainable payout ratio.
HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.63%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
356.74
+3.18 (+0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73%
Inst Owner Change0.56%
Ins Owners15.5%
Ins Owner Change3.5%
Market Cap49.66B
Revenue(TTM)4.49B
Net Income(TTM)690.38M
Analysts79.2
Price Target365.75 (2.53%)
Short Float %5.27%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
Yearly Dividend0.23
Dividend Growth(5Y)7.53%
DP4.63%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.72%
Min EPS beat(2)5.63%
Max EPS beat(2)9.81%
EPS beat(4)4
Avg EPS beat(4)12.08%
Min EPS beat(4)5.63%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.74%
EPS beat(12)10
Avg EPS beat(12)6.64%
EPS beat(16)13
Avg EPS beat(16)4.65%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.03%
Max Revenue beat(2)1.83%
Revenue beat(4)4
Avg Revenue beat(4)2.07%
Min Revenue beat(4)0.03%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)1.21%
Revenue beat(16)11
Avg Revenue beat(16)0.94%
PT rev (1m)3.03%
PT rev (3m)1.37%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.66 | ||
| Fwd PE | 65.14 | ||
| P/S | 11.07 | ||
| P/FCF | 57.65 | ||
| P/OCF | 53.16 | ||
| P/B | 11.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.11 |
EPS(TTM)4.91
EY1.38%
EPS(NY)5.48
Fwd EY1.54%
FCF(TTM)6.19
FCFY1.73%
OCF(TTM)6.71
OCFY1.88%
SpS32.22
BVpS30.93
TBVpS-5.95
PEG (NY)6.36
PEG (5Y)4.4
Graham Number58.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROCE | 13.29% | ||
| ROIC | 11.03% | ||
| ROICexc | 11.35% | ||
| ROICexgc | 36.48% | ||
| OM | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% | ||
| FCFM | 19.21% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
ROICexc(3y)9.9%
ROICexc(5y)10.38%
ROICexgc(3y)33.39%
ROICexgc(5y)33.47%
ROCE(3y)11.62%
ROCE(5y)12.13%
ROICexgc growth 3Y-0.02%
ROICexgc growth 5Y1.82%
ROICexc growth 3Y-0.9%
ROICexc growth 5Y1.04%
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%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 37.17% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 7.9 | ||
| Cash Conversion | 76.89% | ||
| Profit Quality | 124.77% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 8.78 |
F-Score8
WACC9.46%
ROIC/WACC1.17
Cap/Depr(3y)36.14%
Cap/Depr(5y)36.1%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.64%
Profit Quality(3y)114.39%
Profit Quality(5y)120.24%
High Growth Momentum
Growth
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
EPS Next Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y18.6%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y10.5%
EBIT growth 1Y22.48%
EBIT growth 3Y27.05%
EBIT growth 5Y22.02%
EBIT Next Year34.15%
EBIT Next 3Y16.88%
EBIT Next 5Y19.29%
FCF growth 1Y40.27%
FCF growth 3Y25.49%
FCF growth 5Y17.4%
OCF growth 1Y38.95%
OCF growth 3Y25.93%
OCF growth 5Y17.96%
HEICO CORP / HEI FAQ
What is the ChartMill fundamental rating of HEICO CORP (HEI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.
Can you provide the valuation status for HEICO CORP?
ChartMill assigns a valuation rating of 3 / 10 to HEICO CORP (HEI). This can be considered as Overvalued.
Can you provide the profitability details for HEICO CORP?
HEICO CORP (HEI) has a profitability rating of 8 / 10.
Can you provide the financial health for HEI stock?
The financial health rating of HEICO CORP (HEI) is 6 / 10.
What is the earnings growth outlook for HEICO CORP?
The Earnings per Share (EPS) of HEICO CORP (HEI) is expected to grow by 11.42% in the next year.