HEICO CORP (HEI) Stock Fundamental Analysis
USA - NYSE:HEI - US4228061093 - Common Stock
321.74 USD
+4.79 (+1.51%)
321.74 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HEI. HEI was compared to 69 industry peers in the Aerospace & Defense industry. HEI has an excellent profitability rating, but there are some minor concerns on its financial health. HEI is valued quite expensive, but it does show an excellent growth. This makes HEI very considerable 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.
HEI had positive earnings in each of the past 5 years.
In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
HEI has a better Return On Assets (7.43%) than 82.61% of its industry peers.
Looking at the Return On Equity, with a value of 15.15%, HEI belongs to the top of the industry, outperforming 81.16% of the companies in the same industry.
HEI has a Return On Invested Capital of 10.04%. This is amongst the best in the industry. HEI outperforms 84.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HEI is in line with the industry average of 8.29%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(10.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 15.15% | ||
| ROIC | 10.04% |
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's Profit Margin of 14.54% is amongst the best of the industry. HEI outperforms 92.75% of its industry peers.
HEI's Profit Margin has declined in the last couple of years.
HEI has a Operating Margin of 22.20%. This is amongst the best in the industry. HEI outperforms 92.75% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
HEI has a Gross Margin of 39.35%. This is in the better half of the industry: HEI outperforms 79.71% of its industry peers.
HEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 14.54% | ||
| GM | 39.35% |
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.
HEI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HEI has more shares outstanding
HEI has a better debt/assets ratio than last year.
2.2 Solvency
HEI has an Altman-Z score of 8.22. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
HEI has a better Altman-Z score (8.22) than 79.71% of its industry peers.
The Debt to FCF ratio of HEI is 2.99, which is a good value as it means it would take HEI, 2.99 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.99, HEI belongs to the best of the industry, outperforming 88.41% of the companies in the same industry.
HEI has a Debt/Equity ratio of 0.57. This is a neutral value indicating HEI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, HEI is in line with its industry, outperforming 46.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 8.22 |
ROIC/WACC1.04
WACC9.7%
2.3 Liquidity
A Current Ratio of 3.43 indicates that HEI has no problem at all paying its short term obligations.
The Current ratio of HEI (3.43) is better than 72.46% of its industry peers.
A Quick Ratio of 1.56 indicates that HEI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.56, HEI perfoms like the industry average, outperforming 59.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.02%, which is quite impressive.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
HEI shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.97%.
Measured over the past years, HEI shows a quite strong growth in Revenue. The Revenue has been growing by 13.42% on average per year.
EPS 1Y (TTM)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
3.2 Future
The Earnings Per Share is expected to grow by 21.94% on average over the next years. This is a very strong growth
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 Y27.11%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
EPS Next 5Y21.94%
Revenue Next Year13.54%
Revenue Next 2Y11.7%
Revenue Next 3Y10.2%
Revenue Next 5Y10.46%
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 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 70.40, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Earnings ratio as HEI.
HEI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 61.11 indicates a quite expensive valuation of HEI.
HEI's Price/Forward Earnings ratio is in line with the industry average.
HEI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.4 | ||
| Fwd PE | 61.11 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA is on the same level as the industry average.
HEI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HEI is cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.77 | ||
| EV/EBITDA | 42.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HEI may justify a higher PE ratio.
HEI's earnings are expected to grow with 17.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.6
PEG (5Y)7.91
EPS Next 2Y19.94%
EPS Next 3Y17.6%
5. Dividend
5.1 Amount
With a yearly dividend of 0.07%, HEI is not a good candidate for dividend investing.
HEI's Dividend Yield is a higher than the industry average which is at 1.47.
Compared to an average S&P500 Dividend Yield of 2.38, 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 8.45%, 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)8.45%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI pays out 5.08% 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.
DP5.08%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
321.74
+4.79 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners72.32%
Inst Owner Change-0.33%
Ins Owners22.67%
Ins Owner Change-11.5%
Market Cap44.79B
Analysts78.4
Price Target357.15 (11.01%)
Short Float %4.95%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.08%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.45%
Min EPS beat(2)7.42%
Max EPS beat(2)25.49%
EPS beat(4)3
Avg EPS beat(4)9.2%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.09%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)13
Avg EPS beat(16)4.06%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)2.31%
Max Revenue beat(2)4.12%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.95%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)9
Avg Revenue beat(16)0.57%
PT rev (1m)8.97%
PT rev (3m)17.94%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)0.5%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.4 | ||
| Fwd PE | 61.11 | ||
| P/S | 10.83 | ||
| P/FCF | 58.77 | ||
| P/OCF | 54.14 | ||
| P/B | 11.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.5 |
EPS(TTM)4.57
EY1.42%
EPS(NY)5.27
Fwd EY1.64%
FCF(TTM)5.47
FCFY1.7%
OCF(TTM)5.94
OCFY1.85%
SpS29.7
BVpS28.5
TBVpS-7.16
PEG (NY)2.6
PEG (5Y)7.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 15.15% | ||
| ROCE | 12.35% | ||
| ROIC | 10.04% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 33.57% | ||
| OM | 22.2% | ||
| PM (TTM) | 14.54% | ||
| GM | 39.35% | ||
| FCFM | 18.43% |
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-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 35.44% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 126.8% | ||
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 8.22 |
F-Score8
WACC9.7%
ROIC/WACC1.04
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)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
EPS Next Y27.11%
EPS Next 2Y19.94%
EPS Next 3Y17.6%
EPS Next 5Y21.94%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.54%
Revenue Next 2Y11.7%
Revenue Next 3Y10.2%
Revenue Next 5Y10.46%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year41.37%
EBIT Next 3Y18.93%
EBIT Next 5Y20.69%
FCF growth 1Y85.96%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y84.87%
OCF growth 3Y14.83%
OCF growth 5Y8.98%