HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
316.86 USD
+2.28 (+0.72%)
HEI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. HEI scores excellent on profitability, but there are some minor concerns on its financial health. HEI shows excellent growth, but is valued quite expensive already. These ratings would make HEI suitable for growth investing!
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.
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
Looking at the Return On Assets, with a value of 7.52%, HEI belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
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.
HEI has a Return On Invested Capital of 9.98%. This is amongst the best in the industry. HEI outperforms 84.51% of its industry peers.
HEI had an Average Return On Invested Capital over the past 3 years of 9.51%. This is in line with the industry average of 8.52%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(9.98%), indicating increased profibility in the last year.
| 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
The Profit Margin of HEI (14.96%) is better than 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.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 39.51%, HEI is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
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 below the Cost of Capital (WACC), so HEI is destroying value.
HEI has more shares outstanding than it did 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 7.67 indicates that HEI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.67, HEI belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 3.13, HEI belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that 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: 60.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.67 |
ROIC/WACC0.98
WACC10.15%
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.
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 57.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.02% 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 8.90% yearly.
HEI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.46%.
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
HEI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.94% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 69.33, which means the current valuation is very expensive for HEI.
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 (25.98), we can say HEI is valued expensively.
HEI is valuated quite expensively with a Price/Forward Earnings ratio of 58.67.
HEI's Price/Forward Earnings ratio is in line with the industry average.
HEI is valuated expensively when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.33 | ||
| Fwd PE | 58.67 |
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 | 56.38 | ||
| EV/EBITDA | 39.99 |
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.
A more expensive valuation may be justified as HEI's earnings are expected to grow with 18.44% in the coming years.
PEG (NY)2.19
PEG (5Y)7.79
EPS Next 2Y21.47%
EPS Next 3Y18.44%
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 1.15, HEI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.08, HEI pays less dividend than the S&P500 average, which is at 2.41.
| 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 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)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 2Y21.47%
EPS Next 3Y18.44%
NYSE:HEI (11/26/2025, 1:11:02 PM)
316.86
+2.28 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.56%
Ins Owners22.66%
Ins Owner Change2.3%
Market Cap44.11B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target356.29 (12.44%)
Short Float %5.02%
Short Ratio7.28
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)-1.25%
PT rev (3m)8.28%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.65%
EPS NY rev (1m)0%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.33 | ||
| Fwd PE | 58.67 | ||
| P/S | 10.28 | ||
| P/FCF | 56.38 | ||
| P/OCF | 52.23 | ||
| P/B | 10.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.99 |
EPS(TTM)4.57
EY1.44%
EPS(NY)5.4
Fwd EY1.7%
FCF(TTM)5.62
FCFY1.77%
OCF(TTM)6.07
OCFY1.91%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)2.19
PEG (5Y)7.79
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 | 7.67 |
F-Score8
WACC10.15%
ROIC/WACC0.98
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 69.33 and the Price/Book (PB) ratio is 10.65.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.