HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
352.55 USD
-5.49 (-1.53%)
352.55 USD
0 (0%)
Overall HEI gets a fundamental rating of 7 out of 10. We evaluated HEI against 72 industry peers in the Aerospace & Defense industry. HEI scores excellent on profitability, but there are some minor concerns on its financial health. HEI is valued quite expensively, but it does show have an excellent growth rating. With these ratings, HEI could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- In the past year HEI was profitable.
- In the past year HEI had a positive cash flow from operations.
- HEI had positive earnings in each of the past 5 years.
- HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HEI has a better Return On Assets (8.12%) 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.
- The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 8.54%.
- The last Return On Invested Capital (11.03%) for HEI is above the 3 year average (9.64%), which is a sign of increasing profitability.
| 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
- HEI has a better Profit Margin (15.39%) than 92.96% of its industry peers.
- In the last couple of years the Profit Margin of HEI has declined.
- HEI has a better Operating Margin (22.72%) than 91.55% of its industry peers.
- In the last couple of years the Operating Margin of HEI has grown nicely.
- HEI's Gross Margin of 39.83% is fine compared to the rest of the industry. HEI outperforms 78.87% of its industry peers.
- HEI's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI is creating some value.
- HEI has more shares outstanding than it did 1 year ago.
- HEI has more shares outstanding than it did 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 8.87. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 8.87, HEI is doing good in the industry, outperforming 76.06% of the companies in the same industry.
- HEI has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as HEI would need 2.52 years to pay back of all of its debts.
- The Debt to FCF ratio of HEI (2.52) is better than 87.32% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that HEI is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.50, HEI is in line with its industry, outperforming 47.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 8.87 |
ROIC/WACC1.16
WACC9.52%
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 has a Quick ratio of 1.28. This is in the lower half of the industry: HEI underperforms 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.
- Measured over the past years, HEI shows a very strong growth in Revenue. The Revenue has been growing by 20.21% on average per year.
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
- Based on estimates for the next years, HEI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.60% on average per year.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- Based on the Price/Earnings ratio of 71.80, the valuation of HEI can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as HEI.
- HEI is valuated expensively when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 64.38, HEI can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.8 | ||
| Fwd PE | 64.38 |
4.2 Price Multiples
- HEI's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI indicates a somewhat cheap valuation: HEI is cheaper than 61.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.98 | ||
| EV/EBITDA | 42.63 |
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.
- HEI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.29
PEG (5Y)4.35
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 0.35, HEI pays a bit more dividend than its industry peers.
- 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
- 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.
- As HEI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 4.63% of the earnings are spent on dividend by HEI. This is a low number and sustainable payout ratio.
- The dividend of HEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.63%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
352.55
-5.49 (-1.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)12-22 2025-12-22/amc
Earnings (Next)02-24 2026-02-24
Inst Owners73%
Inst Owner Change0.56%
Ins Owners15.5%
Ins Owner Change3.5%
Market Cap49.08B
Revenue(TTM)4.49B
Net Income(TTM)690.38M
Analysts79.2
Price Target372.64 (5.7%)
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-Date01-05 2026-01-05 (0.12)
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 | 71.8 | ||
| Fwd PE | 64.38 | ||
| P/S | 10.94 | ||
| P/FCF | 56.98 | ||
| P/OCF | 52.53 | ||
| P/B | 11.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.63 |
EPS(TTM)4.91
EY1.39%
EPS(NY)5.48
Fwd EY1.55%
FCF(TTM)6.19
FCFY1.76%
OCF(TTM)6.71
OCFY1.9%
SpS32.22
BVpS30.93
TBVpS-5.95
PEG (NY)6.29
PEG (5Y)4.35
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 | 8.87 |
F-Score8
WACC9.52%
ROIC/WACC1.16
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.