HEICO CORP (HEI) Stock Fundamental Analysis
NYSE:HEI - New York Stock Exchange, Inc. - US4228061093 - Common Stock - Currency: USD
Overall HEI gets a fundamental rating of 6 out of 10. We evaluated HEI against 65 industry peers in the Aerospace & Defense industry. While HEI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HEI is quite expensive at the moment. It does show a decent growth rate.
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
HEI's Return On Assets of 6.77% is fine compared to the rest of the industry. HEI outperforms 78.13% of its industry peers.
Looking at the Return On Equity, with a value of 14.14%, HEI is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
HEI has a better Return On Invested Capital (9.76%) than 82.81% 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 7.61%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(9.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 14.14% | ||
| ROIC | 9.76% |
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
Looking at the Profit Margin, with a value of 13.33%, HEI belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
HEI's Profit Margin has declined in the last couple of years.
HEI has a better Operating Margin (21.57%) than 95.31% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
HEI's Gross Margin of 38.93% is amongst the best of the industry. HEI outperforms 81.25% of its industry peers.
HEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.57% | ||
| PM (TTM) | 13.33% | ||
| GM | 38.93% |
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.
Compared to 1 year ago, HEI has more shares outstanding
HEI has more shares outstanding than it did 5 years ago.
HEI has a better debt/assets ratio than last year.
2.2 Solvency
HEI has an Altman-Z score of 6.61. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HEI (6.61) is better than 79.69% of its industry peers.
HEI has a debt to FCF ratio of 3.63. This is a good value and a sign of high solvency as HEI would need 3.63 years to pay back of all of its debts.
HEI's Debt to FCF ratio of 3.63 is fine compared to the rest of the industry. HEI outperforms 79.69% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that HEI is somewhat dependend on debt financing.
HEI has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 6.61 |
ROIC/WACC0.96
WACC10.15%
2.3 Liquidity
A Current Ratio of 3.11 indicates that HEI has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.11, HEI is doing good in the industry, outperforming 71.88% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that HEI should not have too much problems paying its short term obligations.
HEI's Quick ratio of 1.34 is in line compared to the rest of the industry. HEI outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.49% 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.
Looking at the last year, HEI shows a very strong growth in Revenue. The Revenue has grown by 29.97%.
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)24.49%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%33.78%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%8.25%
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 14.94% on average per year.
The Revenue is expected to grow by 7.42% on average over the next years.
EPS Next Y18.06%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
EPS Next 5Y14.94%
Revenue Next Year8.05%
Revenue Next 2Y7.67%
Revenue Next 3Y7.36%
Revenue Next 5Y7.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HEI is valuated quite expensively with a Price/Earnings ratio of 64.24.
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 28.42, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 54.42, the valuation of HEI can be described as expensive.
HEI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.39. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.24 | ||
| Fwd PE | 54.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, HEI is valued a bit cheaper than 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.16 | ||
| EV/EBITDA | 34.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HEI has an outstanding profitability rating, which may justify a higher PE ratio.
HEI's earnings are expected to grow with 14.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.56
PEG (5Y)7.22
EPS Next 2Y16.88%
EPS Next 3Y14.01%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.09%, which is pretty low.
HEI's Dividend Yield is a higher than the industry average which is at 1.34.
With a Dividend Yield of 0.09, HEI pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
5.2 History
On average, the dividend of HEI grows each year by 8.45%, which is quite nice.
HEI has been paying a dividend for at least 10 years, so it has 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)8.45%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI pays out 5.65% 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.
DP5.65%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
HEICO CORP
NYSE:HEI (1/28/2025, 8:04:00 PM)
After market: 235.13 0 (0%)235.13
-0.3 (-0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners72.43%
Inst Owner Change-0.18%
Ins Owners22.57%
Ins Owner Change11.99%
Market Cap32.64B
Analysts76.67
Price Target274.5 (16.74%)
Short Float %5.58%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.65%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.7%
Min EPS beat(2)-0.72%
Max EPS beat(2)4.11%
EPS beat(4)3
Avg EPS beat(4)5.28%
Min EPS beat(4)-0.72%
Max EPS beat(4)9.82%
EPS beat(8)6
Avg EPS beat(8)3.85%
EPS beat(12)9
Avg EPS beat(12)2.13%
EPS beat(16)13
Avg EPS beat(16)2.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-3%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-3%
Max Revenue beat(4)-0.55%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)8
Avg Revenue beat(16)0.34%
PT rev (1m)0%
PT rev (3m)1.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.24 | ||
| Fwd PE | 54.42 | ||
| P/S | 8.46 | ||
| P/FCF | 53.16 | ||
| P/OCF | 48.55 | ||
| P/B | 8.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.5 |
EPS(TTM)3.66
EY1.56%
EPS(NY)4.32
Fwd EY1.84%
FCF(TTM)4.42
FCFY1.88%
OCF(TTM)4.84
OCFY2.06%
SpS27.79
BVpS26.2
TBVpS-7.77
PEG (NY)3.56
PEG (5Y)7.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 14.14% | ||
| ROCE | 12.01% | ||
| ROIC | 9.76% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 32.95% | ||
| OM | 21.57% | ||
| PM (TTM) | 13.33% | ||
| GM | 38.93% | ||
| FCFM | 15.92% |
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%
ROICexcg growth 3Y3.12%
ROICexcg 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-Score9
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.63 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 33.23% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 5.59 | ||
| Cash Conversion | 66.75% | ||
| Profit Quality | 119.45% | ||
| Current Ratio | 3.11 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 6.61 |
F-Score9
WACC10.15%
ROIC/WACC0.96
Cap/Depr(3y)34.82%
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)24.49%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%33.78%
EPS Next Y18.06%
EPS Next 2Y16.88%
EPS Next 3Y14.01%
EPS Next 5Y14.94%
Revenue 1Y (TTM)29.97%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%8.25%
Revenue Next Year8.05%
Revenue Next 2Y7.67%
Revenue Next 3Y7.36%
Revenue Next 5Y7.42%
EBIT growth 1Y33.04%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year34%
EBIT Next 3Y15.53%
EBIT Next 5Y13.92%
FCF growth 1Y53.8%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y49.84%
OCF growth 3Y14.83%
OCF growth 5Y8.98%