HEICO CORP (HEI) Stock Fundamental Analysis
USA - NYSE:HEI - US4228061093 - Common Stock
313.88 USD
+3.55 (+1.14%)
HEI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Aerospace & Defense industry. While HEI has a great profitability rating, there are some minor concerns on its financial health. HEI is valued quite expensive, but it does show an excellent growth. These ratings would make HEI suitable for growth investing!
1. Profitability
1.1 Basic Checks
HEI had positive earnings in the past year.
In the past year HEI had a positive cash flow from operations.
Each year in the past 5 years HEI has been profitable.
In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
HEI's Return On Assets of 7.52% is amongst the best of the industry. HEI outperforms 81.43% of its industry peers.
HEI's Return On Equity of 15.50% is fine compared to the rest of the industry. HEI outperforms 80.00% of its industry peers.
The Return On Invested Capital of HEI (9.98%) is better than 82.86% 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 8.43%.
The last Return On Invested Capital (9.98%) for HEI 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 has a Profit Margin of 14.96%. This is amongst the best in the industry. HEI outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of HEI has declined.
With an excellent Operating Margin value of 22.38%, HEI belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
HEI has a better Gross Margin (39.51%) than 80.00% of its industry peers.
HEI'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 is still creating some value.
The number of shares outstanding for HEI has been increased compared to 1 year ago.
Compared to 5 years ago, HEI has more shares outstanding
Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
HEI has an Altman-Z score of 7.59. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.59, HEI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
HEI has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as HEI would need 3.13 years to pay back of all of its debts.
HEI has a Debt to FCF ratio of 3.13. This is amongst the best in the industry. HEI outperforms 87.14% of its industry peers.
HEI has a Debt/Equity ratio of 0.59. This is a neutral value indicating HEI is somewhat dependend on debt financing.
HEI has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.59 |
ROIC/WACC1.04
WACC9.55%
2.3 Liquidity
HEI has a Current Ratio of 3.35. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.35, HEI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that HEI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.51, HEI perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.02% over the past year.
Measured over the past years, HEI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.90% on average per year.
HEI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.46%.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
EPS 1Y (TTM)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
3.2 Future
HEI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.94% yearly.
HEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 68.68, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Earnings ratio as HEI.
When comparing the Price/Earnings ratio of HEI to the average of the S&P500 Index (26.19), we can say HEI is valued expensively.
HEI is valuated quite expensively with a Price/Forward Earnings ratio of 58.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI is on the same level as its industry peers.
HEI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.68 | ||
| Fwd PE | 58.12 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA is on the same level as the industry average.
61.43% of the companies in the same industry are more expensive than HEI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.84 | ||
| EV/EBITDA | 39.48 |
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.
HEI's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)7.72
EPS Next 2Y21.47%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.08%, which is pretty low.
Compared to an average industry Dividend Yield of 1.11, HEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
On average, the dividend of HEI grows each year by 8.47%, which is quite nice.
HEI has paid a dividend for at least 10 years, which is 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)8.47%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI pays out 4.98% 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.
DP4.98%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
NYSE:HEI (10/31/2025, 1:35:16 PM)
313.88
+3.55 (+1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.46%
Ins Owners22.66%
Ins Owner Change-2.03%
Market Cap43.70B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target360.8 (14.95%)
Short Float %4.96%
Short Ratio5.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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)1.02%
PT rev (3m)10.62%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.68 | ||
| Fwd PE | 58.12 | ||
| P/S | 10.19 | ||
| P/FCF | 55.84 | ||
| P/OCF | 51.74 | ||
| P/B | 10.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.48 |
EPS(TTM)4.57
EY1.46%
EPS(NY)5.4
Fwd EY1.72%
FCF(TTM)5.62
FCFY1.79%
OCF(TTM)6.07
OCFY1.93%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)2.17
PEG (5Y)7.72
Graham Number55.31
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 | 7.59 |
F-Score8
WACC9.55%
ROIC/WACC1.04
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)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.27%
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 / HEI FAQ
Can you provide the ChartMill fundamental rating for HEICO CORP?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.
What is the valuation status for HEI stock?
ChartMill assigns a valuation rating of 3 / 10 to HEICO CORP (HEI). This can be considered as Overvalued.
What is the profitability of HEI stock?
HEICO CORP (HEI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of HEICO CORP (HEI) stock?
The Price/Earnings (PE) ratio for HEICO CORP (HEI) is 68.68 and the Price/Book (PB) ratio is 10.55.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.