HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
334.41 USD
-5.03 (-1.48%)
334.41 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HEI. HEI was compared to 73 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. 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.
- 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 8.12% is amongst the best of the industry. HEI outperforms 84.93% of its industry peers.
- HEI's Return On Equity of 16.04% is amongst the best of the industry. HEI outperforms 80.82% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.03%, HEI belongs to the top of the industry, outperforming 84.93% of the companies in the same industry.
- HEI had an Average Return On Invested Capital over the past 3 years of 9.64%. This is in line with the industry average of 8.56%.
- The 3 year average ROIC (9.64%) for HEI is below the current ROIC(11.03%), indicating increased profibility in the last year.
| 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's Profit Margin of 15.39% is amongst the best of the industry. HEI outperforms 93.15% of its industry peers.
- In the last couple of years the Profit Margin of HEI has declined.
- Looking at the Operating Margin, with a value of 22.72%, HEI belongs to the top of the industry, outperforming 91.78% of the companies in the same industry.
- HEI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 39.83%, HEI is in the better half of the industry, outperforming 79.45% 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI is still creating some value.
- Compared to 1 year ago, HEI has more shares outstanding
- 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
- An Altman-Z score of 8.50 indicates that HEI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HEI (8.50) is better than 75.34% of its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 2.52, HEI belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
- HEI has a Debt/Equity ratio of 0.50. This is a neutral value indicating HEI is somewhat dependend on debt financing.
- HEI has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 8.5 |
ROIC/WACC1.12
WACC9.82%
2.3 Liquidity
- A Current Ratio of 2.83 indicates that HEI has no problem at all paying its short term obligations.
- HEI has a Current ratio (2.83) which is in line with its industry peers.
- A Quick Ratio of 1.28 indicates that HEI should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.28, HEI is not doing good in the industry: 61.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.29%, which is quite impressive.
- The Earnings Per Share has been growing by 16.50% on average over the past years. This is quite good.
- HEI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.26%.
- The Revenue has been growing by 20.21% on average over the past years. This is a very strong growth!
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
- The Earnings Per Share is expected to grow by 18.60% on average over the next years. This is quite good.
- Based on estimates for the next years, HEI will show a quite strong growth in Revenue. The Revenue will grow by 10.46% on average per year.
EPS Next Y11.42%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
EPS Next 5Y18.6%
Revenue Next Year11.25%
Revenue Next 2Y9.81%
Revenue Next 3Y8.93%
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 stable.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 68.11, HEI can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of HEI is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of HEI to the average of the S&P500 Index (27.21), we can say HEI is valued expensively.
- HEI is valuated quite expensively with a Price/Forward Earnings ratio of 61.07.
- HEI's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, HEI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.11 | ||
| Fwd PE | 61.07 |
4.2 Price Multiples
- HEI's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, HEI is valued a bit cheaper than the industry average as 65.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.04 | ||
| EV/EBITDA | 40.49 |
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.
PEG (NY)5.96
PEG (5Y)4.13
EPS Next 2Y12.63%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.07%, HEI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.34, HEI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.07, HEI pays less dividend than the S&P500 average, which is at 1.82.
| 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 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)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- HEI pays out 4.63% 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.
DP4.63%
EPS Next 2Y12.63%
EPS Next 3Y11.48%
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.