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. HEI scores excellent on profitability, but there are some minor concerns on its financial health. HEI is valued quite expensively, but it does show have an excellent growth rating. 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.
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
The Return On Assets of HEI (7.43%) is better than 78.46% of its industry peers.
HEI has a Return On Equity of 15.15%. This is in the better half of the industry: HEI outperforms 80.00% of its industry peers.
HEI has a Return On Invested Capital of 10.04%. This is amongst the best in the industry. HEI outperforms 83.08% 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 8.44%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(10.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 15.15% | ||
| ROIC | 10.04% |
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 14.54%, HEI belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
HEI's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.20%, HEI belongs to the best of the industry, outperforming 92.31% 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.
The Gross Margin of HEI (39.35%) is better than 80.00% of its industry peers.
HEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.2% | ||
| PM (TTM) | 14.54% | ||
| GM | 39.35% |
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 below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
HEI has an Altman-Z score of 8.20. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
HEI has a better Altman-Z score (8.20) than 84.62% of its industry peers.
HEI has a debt to FCF ratio of 2.99. This is a good value and a sign of high solvency as HEI would need 2.99 years to pay back of all of its debts.
HEI has a better Debt to FCF ratio (2.99) than 86.15% of its industry peers.
HEI has a Debt/Equity ratio of 0.57. This is a neutral value indicating HEI is somewhat dependend on debt financing.
HEI has a Debt to Equity ratio (0.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 8.2 |
ROIC/WACC0.99
WACC10.1%
2.3 Liquidity
A Current Ratio of 3.43 indicates that HEI has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.43, HEI is doing good in the industry, outperforming 70.77% of the companies in the same industry.
HEI has a Quick Ratio of 1.56. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
HEI has a Quick ratio of 1.56. This is comparable to the rest of the industry: HEI outperforms 58.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
Measured over the past years, HEI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.90% on average per year.
Looking at the last year, HEI shows a quite strong growth in Revenue. The Revenue has grown by 17.74% in the last year.
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)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
3.2 Future
The Earnings Per Share is expected to grow by 21.41% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y25.99%
EPS Next 2Y19.43%
EPS Next 3Y17.4%
EPS Next 5Y21.41%
Revenue Next Year11.64%
Revenue Next 2Y9.99%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
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
HEI is valuated quite expensively with a Price/Earnings ratio of 74.50.
The rest of the industry has a similar Price/Earnings ratio as HEI.
Compared to an average S&P500 Price/Earnings ratio of 27.28, HEI is valued quite expensively.
A Price/Forward Earnings ratio of 61.07 indicates a quite expensive valuation of HEI.
HEI's Price/Forward Earnings is on the same level as the industry average.
HEI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.5 | ||
| Fwd PE | 61.07 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HEI is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.13 | ||
| EV/EBITDA | 42.4 |
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 a very decent profitability rating, which may justify a higher PE ratio.
HEI's earnings are expected to grow with 17.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.87
PEG (5Y)8.37
EPS Next 2Y19.43%
EPS Next 3Y17.4%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.07%, which is pretty low.
Compared to an average industry Dividend Yield of 1.27, HEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, HEI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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.
As HEI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.45%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI pays out 5.08% 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.
DP5.08%
EPS Next 2Y19.43%
EPS Next 3Y17.4%
318.84
-2.67 (-0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners71.77%
Inst Owner Change-36.38%
Ins Owners22.67%
Ins Owner Change-3.02%
Market Cap44.30B
Analysts75.2
Price Target310.64 (-2.57%)
Short Float %5.62%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
Yearly Dividend0.21
Dividend Growth(5Y)8.45%
DP5.08%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.45%
Min EPS beat(2)7.42%
Max EPS beat(2)25.49%
EPS beat(4)3
Avg EPS beat(4)9.2%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.09%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)13
Avg EPS beat(16)4.06%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)2.31%
Max Revenue beat(2)4.12%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.95%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)9
Avg Revenue beat(16)0.57%
PT rev (1m)12.66%
PT rev (3m)9.75%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)2.66%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.5 | ||
| Fwd PE | 61.07 | ||
| P/S | 10.72 | ||
| P/FCF | 58.13 | ||
| P/OCF | 53.55 | ||
| P/B | 11.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.4 |
EPS(TTM)4.28
EY1.34%
EPS(NY)5.22
Fwd EY1.64%
FCF(TTM)5.48
FCFY1.72%
OCF(TTM)5.95
OCFY1.87%
SpS29.75
BVpS28.55
TBVpS-7.17
PEG (NY)2.87
PEG (5Y)8.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 15.15% | ||
| ROCE | 12.35% | ||
| ROIC | 10.04% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 33.57% | ||
| OM | 22.2% | ||
| PM (TTM) | 14.54% | ||
| GM | 39.35% | ||
| FCFM | 18.43% |
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-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 35.44% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.1% | ||
| Profit Quality | 126.8% | ||
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 8.2 |
F-Score8
WACC10.1%
ROIC/WACC0.99
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)33.33%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%27.27%
EPS Next Y25.99%
EPS Next 2Y19.43%
EPS Next 3Y17.4%
EPS Next 5Y21.41%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%14.91%
Revenue Next Year11.64%
Revenue Next 2Y9.99%
Revenue Next 3Y9.09%
Revenue Next 5Y10.16%
EBIT growth 1Y26%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year37.56%
EBIT Next 3Y17.14%
EBIT Next 5Y20.23%
FCF growth 1Y85.96%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y84.87%
OCF growth 3Y14.83%
OCF growth 5Y8.98%