HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
338.07 USD
+0.18 (+0.05%)
338.07 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HEI. HEI was compared to 71 industry peers in the Aerospace & Defense industry. While HEI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HEI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
HEI had positive earnings in 4 of the past 5 years.
HEI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HEI's Return On Assets of 7.52% is amongst the best of the industry. HEI outperforms 81.69% of its industry peers.
With an excellent Return On Equity value of 15.50%, HEI belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
The Return On Invested Capital of HEI (9.98%) is better than 83.10% 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 8.60%.
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 better Profit Margin (14.96%) than 92.96% of its industry peers.
HEI's Profit Margin has declined in the last couple of years.
HEI has a better Operating Margin (22.38%) than 92.96% of its industry peers.
HEI's Operating Margin has been stable in the last couple of years.
The Gross Margin of HEI (39.51%) is better than 77.46% 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.
HEI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 8.11 indicates that HEI is not in any danger for bankruptcy at the moment.
HEI's Altman-Z score of 8.11 is fine compared to the rest of the industry. HEI outperforms 77.46% of its industry peers.
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 better Debt to FCF ratio (3.13) than 84.51% 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.
With a Debt to Equity ratio value of 0.59, HEI is not doing good in the industry: 63.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 8.11 |
ROIC/WACC1.03
WACC9.72%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI has no problem at all paying its short term obligations.
HEI's Current ratio of 3.35 is fine compared to the rest of the industry. HEI outperforms 64.79% of its industry peers.
A Quick Ratio of 1.51 indicates that HEI should not have too much problems paying its short term obligations.
HEI's Quick ratio of 1.51 is in line compared to the rest of the industry. HEI outperforms 52.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.15%, which is quite impressive.
HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.48% yearly.
EPS 1Y (TTM)34.15%
EPS 3Y24.41%
EPS 5Y16.48%
EPS Q2Q%34.34%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
3.2 Future
The Earnings Per Share is expected to grow by 19.06% 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 9.63% yearly.
EPS Next Y11.53%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
EPS Next 5Y19.06%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y9.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
HEI is valuated quite expensively with a Price/Earnings ratio of 68.85.
HEI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.59, HEI is valued quite expensively.
A Price/Forward Earnings ratio of 61.73 indicates a quite expensive valuation of HEI.
HEI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.03. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.85 | ||
| Fwd PE | 61.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HEI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI indicates a somewhat cheap valuation: HEI is cheaper than 60.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.15 | ||
| EV/EBITDA | 42.84 |
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 decent profitability rating of HEI may justify a higher PE ratio.
PEG (NY)5.97
PEG (5Y)4.18
EPS Next 2Y12.68%
EPS Next 3Y11.52%
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 0.41.
Compared to an average S&P500 Dividend Yield of 1.87, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
The dividend of HEI is nicely growing with an annual growth rate of 8.47%!
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)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.
HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.98%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
338.07
+0.18 (+0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.05%
Inst Owner Change0.6%
Ins Owners15.53%
Ins Owner Change3.49%
Market Cap47.06B
Revenue(TTM)N/A
Net Income(TTM)641.78M
Analysts78.33
Price Target365.75 (8.19%)
Short Float %5.3%
Short Ratio6.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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)0.12%
PT rev (3m)-0.61%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)1.12%
EPS NY rev (1m)0.83%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.85 | ||
| Fwd PE | 61.73 | ||
| P/S | 10.97 | ||
| P/FCF | 60.15 | ||
| P/OCF | 55.72 | ||
| P/B | 11.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.84 |
EPS(TTM)4.91
EY1.45%
EPS(NY)5.48
Fwd EY1.62%
FCF(TTM)5.62
FCFY1.66%
OCF(TTM)6.07
OCFY1.79%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)5.97
PEG (5Y)4.18
Graham Number57.33
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 | 8.11 |
F-Score8
WACC9.72%
ROIC/WACC1.03
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)34.15%
EPS 3Y24.41%
EPS 5Y16.48%
EPS Q2Q%34.34%
EPS Next Y11.53%
EPS Next 2Y12.68%
EPS Next 3Y11.52%
EPS Next 5Y19.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
Revenue Next Year10.05%
Revenue Next 2Y8.89%
Revenue Next 3Y7.27%
Revenue Next 5Y9.63%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.21%
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 5 / 10 to HEI.
What is the valuation status for HEI stock?
ChartMill assigns a valuation rating of 2 / 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 7 / 10.
What are the PE and PB ratios of HEICO CORP (HEI) stock?
The Price/Earnings (PE) ratio for HEICO CORP (HEI) is 68.85 and the Price/Book (PB) ratio is 11.36.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.