HEICO CORP (HEI) Stock Fundamental Analysis
USA - NYSE:HEI - US4228061093 - Common Stock
313.64 USD
-3.77 (-1.19%)
313.64 USD
0 (0%)
HEI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 72 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 expensively, but it does show have an excellent growth rating. These ratings would make HEI suitable 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.
In the past 5 years HEI has always been profitable.
Each year in the past 5 years HEI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.52%, HEI belongs to the best of the industry, outperforming 81.94% of the companies in the same industry.
The Return On Equity of HEI (15.50%) is better than 80.56% of its industry peers.
HEI has a better Return On Invested Capital (9.98%) than 83.33% 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 8.50%.
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 93.06% of its industry peers.
HEI's Profit Margin has declined in the last couple of years.
The Operating Margin of HEI (22.38%) is better than 93.06% of its industry peers.
HEI's Operating Margin has been stable in the last couple of years.
HEI's Gross Margin of 39.51% is fine compared to the rest of the industry. HEI outperforms 79.17% 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
HEI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HEI has been increased compared to 1 year ago.
The number of shares outstanding for HEI has been increased compared to 5 years ago.
The debt/assets ratio for HEI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.72 indicates that HEI is not in any danger for bankruptcy at the moment.
HEI's Altman-Z score of 7.72 is fine compared to the rest of the industry. HEI outperforms 79.17% of its industry peers.
The Debt to FCF ratio of HEI is 3.13, which is a good value as it means it would take HEI, 3.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.13, HEI belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that HEI is somewhat dependend on debt financing.
HEI's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. HEI outperforms 43.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.72 |
ROIC/WACC1.01
WACC9.85%
2.3 Liquidity
HEI has a Current Ratio of 3.35. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HEI (3.35) is better than 69.44% of its industry peers.
HEI has a Quick Ratio of 1.51. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.51, HEI perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| 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 34.02%, 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 8.90% yearly.
Looking at the last year, HEI shows a quite strong growth in Revenue. The Revenue has grown by 13.46% in the last year.
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)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
3.2 Future
Based on estimates for the next years, HEI will show a very strong growth in Earnings Per Share. The EPS will grow by 21.94% on average per year.
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 Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
HEI is valuated quite expensively with a Price/Earnings ratio of 68.63.
HEI's Price/Earnings is on the same level as the industry average.
HEI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 58.08, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
HEI is valuated expensively when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.63 | ||
| Fwd PE | 58.08 |
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 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.8 | ||
| EV/EBITDA | 40.34 |
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.
HEI's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)7.71
EPS Next 2Y21.47%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.08%, which is pretty low.
HEI's Dividend Yield is a higher than the industry average which is at 1.12.
With a Dividend Yield of 0.08, HEI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
On average, the dividend of HEI grows each year by 8.47%, 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)8.47%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
4.98% 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.
DP4.98%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
313.64
-3.77 (-1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.21%
Ins Owners22.66%
Ins Owner Change2.3%
Market Cap43.66B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target354.54 (13.04%)
Short Float %4.96%
Short Ratio5.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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)-1.74%
PT rev (3m)8.17%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.63 | ||
| Fwd PE | 58.08 | ||
| P/S | 10.18 | ||
| P/FCF | 55.8 | ||
| P/OCF | 51.7 | ||
| P/B | 10.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.34 |
EPS(TTM)4.57
EY1.46%
EPS(NY)5.4
Fwd EY1.72%
FCF(TTM)5.62
FCFY1.79%
OCF(TTM)6.07
OCFY1.93%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)2.17
PEG (5Y)7.71
Graham Number55.31
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 | 7.72 |
F-Score8
WACC9.85%
ROIC/WACC1.01
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)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.27%
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 7 / 10 to HEI.
What is the valuation status for HEI stock?
ChartMill assigns a valuation rating of 3 / 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 8 / 10.
What are the PE and PB ratios of HEICO CORP (HEI) stock?
The Price/Earnings (PE) ratio for HEICO CORP (HEI) is 68.63 and the Price/Book (PB) ratio is 10.54.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.