HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
312.2 USD
-3.44 (-1.09%)
312.2 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HEI. HEI was compared to 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 expensive, but it does show an excellent growth. With these ratings, HEI could be worth investigating further 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 has a Return On Assets of 7.52%. This is amongst the best in the industry. HEI outperforms 81.69% of its industry peers.
HEI has a Return On Equity of 15.50%. This is amongst the best in the industry. HEI outperforms 80.28% of its industry peers.
With an excellent Return On Invested Capital value of 9.98%, HEI belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HEI is in line with the industry average of 8.58%.
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 Profit Margin of 14.96%. This is amongst the best in the industry. HEI outperforms 92.96% of its industry peers.
In the last couple of years the Profit Margin of HEI has declined.
With an excellent Operating Margin value of 22.38%, HEI belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
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
HEI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HEI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HEI has more shares outstanding
HEI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.62 indicates that HEI is not in any danger for bankruptcy at the moment.
HEI has a Altman-Z score of 7.62. This is in the better half of the industry: HEI outperforms 77.46% 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.
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.
HEI's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. HEI is outperformed by 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.62 |
ROIC/WACC1.02
WACC9.77%
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 67.61% of its industry peers.
A Quick Ratio of 1.51 indicates that HEI should not have too much problems paying its short term obligations.
The Quick ratio of HEI (1.51) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 8.90% 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 13.46%.
Measured over the past years, HEI shows a quite strong growth in Revenue. The Revenue has been growing by 13.42% on average per year.
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
The Earnings Per Share is expected to grow by 21.94% on average over the next years. This is a very strong growth
HEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
EPS Next Y32.72%
EPS Next 2Y22.02%
EPS Next 3Y18.91%
EPS Next 5Y21.94%
Revenue Next Year13.54%
Revenue Next 2Y11.68%
Revenue Next 3Y10.16%
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
A Price/Earnings ratio of 68.32 indicates a quite expensive valuation of HEI.
The rest of the industry has a similar Price/Earnings ratio as HEI.
The average S&P500 Price/Earnings ratio is at 26.49. HEI is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 57.29, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
When comparing the Price/Forward Earnings ratio of HEI to the average of the S&P500 Index (23.69), we can say HEI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.32 | ||
| Fwd PE | 57.29 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA is on the same level as the industry average.
HEI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HEI is cheaper than 60.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.55 | ||
| EV/EBITDA | 39.7 |
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.
A more expensive valuation may be justified as HEI's earnings are expected to grow with 18.91% in the coming years.
PEG (NY)2.09
PEG (5Y)7.68
EPS Next 2Y22.02%
EPS Next 3Y18.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, HEI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.12, HEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, HEI's dividend is way lower than the S&P500 average.
| 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.
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.
The dividend of HEI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.98%
EPS Next 2Y22.02%
EPS Next 3Y18.91%
312.2
-3.44 (-1.09%)
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 Cap43.46B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts78.33
Price Target354.97 (13.7%)
Short Float %5.34%
Short Ratio7.49
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)0.12%
PT rev (3m)2.6%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)0.83%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.32 | ||
| Fwd PE | 57.29 | ||
| P/S | 10.13 | ||
| P/FCF | 55.55 | ||
| P/OCF | 51.46 | ||
| P/B | 10.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.7 |
EPS(TTM)4.57
EY1.46%
EPS(NY)5.45
Fwd EY1.75%
FCF(TTM)5.62
FCFY1.8%
OCF(TTM)6.07
OCFY1.94%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)2.09
PEG (5Y)7.68
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 | 7.62 |
F-Score8
WACC9.77%
ROIC/WACC1.02
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 Y32.72%
EPS Next 2Y22.02%
EPS Next 3Y18.91%
EPS Next 5Y21.94%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.54%
Revenue Next 2Y11.68%
Revenue Next 3Y10.16%
Revenue Next 5Y10.46%
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 6 / 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 8 / 10.
What are the PE and PB ratios of HEICO CORP (HEI) stock?
The Price/Earnings (PE) ratio for HEICO CORP (HEI) is 68.32 and the Price/Book (PB) ratio is 10.49.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.