HEICO CORP (HEI)
US4228061093 - Common Stock
Taking everything into account, HEI scores 6 out of 10 in our fundamental rating. HEI was compared to 64 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
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's Return On Assets of 6.77% is fine compared to the rest of the industry. HEI outperforms 78.13% of its industry peers.
With a decent Return On Equity value of 14.14%, HEI is doing good in the industry, outperforming 76.56% of the companies in the same industry.
HEI has a Return On Invested Capital of 9.76%. This is amongst the best in the industry. HEI outperforms 82.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 7.71%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(9.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 14.14% | ||
| ROIC | 9.76% |
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
With an excellent Profit Margin value of 13.33%, HEI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of HEI has declined.
HEI's Operating Margin of 21.57% is amongst the best of the industry. HEI outperforms 95.31% of its industry peers.
HEI's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 38.93%, HEI is doing good in the industry, outperforming 79.69% 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 | 21.57% | ||
| PM (TTM) | 13.33% | ||
| GM | 38.93% |
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 below the Cost of Capital (WACC), so HEI is destroying value.
HEI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HEI has been increased compared to 5 years ago.
HEI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.71 indicates that HEI is not in any danger for bankruptcy at the moment.
HEI has a better Altman-Z score (6.71) than 84.38% of its industry peers.
The Debt to FCF ratio of HEI is 3.63, which is a good value as it means it would take HEI, 3.63 years of fcf income to pay off all of its debts.
HEI's Debt to FCF ratio of 3.63 is fine compared to the rest of the industry. HEI outperforms 78.13% of its industry peers.
HEI has a Debt/Equity ratio of 0.61. This is a neutral value indicating HEI is somewhat dependend on debt financing.
The Debt to Equity ratio of HEI (0.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 6.71 |
ROIC/WACC0.99
WACC9.83%
2.3 Liquidity
HEI has a Current Ratio of 3.11. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
HEI has a better Current ratio (3.11) than 73.44% of its industry peers.
HEI has a Quick Ratio of 1.34. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
HEI has a Quick ratio (1.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.49% over the past year.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
Looking at the last year, HEI shows a very strong growth in Revenue. The Revenue has grown by 29.97%.
HEI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.42% yearly.
EPS 1Y (TTM)24.49%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%33.78%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%8.25%
3.2 Future
HEI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.23% yearly.
The Revenue is expected to grow by 8.23% on average over the next years. This is quite good.
EPS Next Y18.06%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
EPS Next 5Y14.23%
Revenue Next Year8.93%
Revenue Next 2Y8.13%
Revenue Next 3Y7%
Revenue Next 5Y8.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 65.73, which means the current valuation is very expensive for HEI.
HEI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.55, HEI is valued quite expensively.
HEI is valuated quite expensively with a Price/Forward Earnings ratio of 55.67.
HEI's Price/Forward Earnings ratio is in line with the industry average.
HEI is valuated expensively when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.73 | ||
| Fwd PE | 55.67 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA ratio is in line with the industry average.
HEI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.29 | ||
| EV/EBITDA | 35.15 |
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.
A more expensive valuation may be justified as HEI's earnings are expected to grow with 14.01% in the coming years.
PEG (NY)3.64
PEG (5Y)7.39
EPS Next 2Y16.88%
EPS Next 3Y14.01%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.09%, which is pretty low.
Compared to an average industry Dividend Yield of 1.46, HEI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.09, HEI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
5.2 History
On average, the dividend of HEI grows each year by 8.45%, which is quite nice.
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
5.65% of the earnings are spent on dividend by HEI. This is a low number and sustainable payout ratio.
HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP5.65%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
HEICO CORP
NYSE:HEI (12/26/2024, 8:19:33 PM)
After market: 240.56 0 (0%)240.56
+0.51 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners72.43%
Inst Owner Change-1.88%
Ins Owners22.57%
Ins Owner Change4.88%
Market Cap33.34B
Analysts77.5
Price Target274.5 (14.11%)
Short Float %5.75%
Short Ratio5.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Dividend Growth(5Y)8.45%
DP5.65%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.7%
Min EPS beat(2)-0.72%
Max EPS beat(2)4.11%
EPS beat(4)3
Avg EPS beat(4)5.28%
Min EPS beat(4)-0.72%
Max EPS beat(4)9.82%
EPS beat(8)6
Avg EPS beat(8)3.85%
EPS beat(12)9
Avg EPS beat(12)2.13%
EPS beat(16)13
Avg EPS beat(16)2.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-3%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-3%
Max Revenue beat(4)-0.55%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)8
Avg Revenue beat(16)0.34%
PT rev (1m)1.42%
PT rev (3m)12.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.73 | ||
| Fwd PE | 55.67 | ||
| P/S | 8.64 | ||
| P/FCF | 54.29 | ||
| P/OCF | 49.59 | ||
| P/B | 9.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.15 |
EPS(TTM)3.66
EY1.52%
EPS(NY)4.32
Fwd EY1.8%
FCF(TTM)4.43
FCFY1.84%
OCF(TTM)4.85
OCFY2.02%
SpS27.83
BVpS26.24
TBVpS-7.78
PEG (NY)3.64
PEG (5Y)7.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 14.14% | ||
| ROCE | 12.01% | ||
| ROIC | 9.76% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 32.95% | ||
| OM | 21.57% | ||
| PM (TTM) | 13.33% | ||
| GM | 38.93% | ||
| FCFM | 15.92% |
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 | 0.61 | ||
| Debt/FCF | 3.63 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 33.23% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 5.59 | ||
| Cash Conversion | 66.75% | ||
| Profit Quality | 119.45% | ||
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 6.71 |
F-Score9
WACC9.83%
ROIC/WACC0.99
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)24.49%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%33.78%
EPS Next Y18.06%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
EPS Next 5Y14.23%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%8.25%
Revenue Next Year8.93%
Revenue Next 2Y8.13%
Revenue Next 3Y7%
Revenue Next 5Y8.23%
EBIT growth 1Y33.04%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year34.48%
EBIT Next 3Y18.33%
EBIT Next 5Y14.8%
FCF growth 1Y53.8%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y49.84%
OCF growth 3Y14.83%
OCF growth 5Y8.98%