HEICO CORP (HEI)
US4228061093 - Common Stock
HEI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 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. These ratings would make HEI suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year HEI was profitable.
In the past year HEI had a positive cash flow from operations.
Each year in the past 5 years HEI has 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 6.44% is fine compared to the rest of the industry. HEI outperforms 78.46% of its industry peers.
HEI has a Return On Equity of 13.50%. This is in the better half of the industry: HEI outperforms 76.92% of its industry peers.
With a decent Return On Invested Capital value of 9.39%, HEI is doing good in the industry, outperforming 78.46% 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 7.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 13.5% | ||
| ROIC | 9.39% |
ROA(3y)7.63%
ROA(5y)8.56%
ROE(3y)13.26%
ROE(5y)15.06%
ROIC(3y)9.4%
ROIC(5y)10.18%
1.3 Margins
Looking at the Profit Margin, with a value of 12.64%, HEI belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
HEI's Profit Margin has been stable in the last couple of years.
HEI has a Operating Margin of 21.19%. This is amongst the best in the industry. HEI outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
With a decent Gross Margin value of 38.94%, HEI is doing good in the industry, outperforming 80.00% 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 | 21.19% | ||
| PM (TTM) | 12.64% | ||
| GM | 38.94% |
OM growth 3Y-0.01%
OM growth 5Y-0.09%
PM growth 3Y-8.19%
PM growth 5Y-1.39%
GM growth 3Y0.6%
GM growth 5Y0%
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.
Compared to 1 year ago, HEI has more shares outstanding
HEI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HEI is higher compared to a year ago.
2.2 Solvency
HEI has an Altman-Z score of 7.59. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
HEI has a Altman-Z score of 7.59. This is amongst the best in the industry. HEI outperforms 90.77% of its industry peers.
The Debt to FCF ratio of HEI is 4.05, which is a neutral value as it means it would take HEI, 4.05 years of fcf income to pay off all of its debts.
HEI has a Debt to FCF ratio of 4.05. This is in the better half of the industry: HEI outperforms 75.38% of its industry peers.
HEI has a Debt/Equity ratio of 0.64. This is a neutral value indicating HEI is somewhat dependend on debt financing.
HEI has a Debt to Equity ratio (0.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 7.59 |
ROIC/WACC1.06
WACC8.84%
2.3 Liquidity
A Current Ratio of 3.30 indicates that HEI has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.30, HEI is doing good in the industry, outperforming 78.46% of the companies in the same industry.
HEI has a Quick Ratio of 1.47. This is a normal value and indicates that HEI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HEI (1.47) is better than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.59%, which is quite good.
HEI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.56% yearly.
The Revenue has grown by 43.13% in the past year. This is a very strong growth!
The Revenue has been growing by 10.80% on average over the past years. This is quite good.
EPS 1Y (TTM)17.59%
EPS 3Y8.69%
EPS 5Y10.56%
EPS Q2Q%25.97%
Revenue 1Y (TTM)43.13%
Revenue growth 3Y18.43%
Revenue growth 5Y10.8%
Sales Q2Q%37.26%
3.2 Future
HEI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.21% yearly.
HEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.89% yearly.
EPS Next Y25.52%
EPS Next 2Y21.37%
EPS Next 3Y19.36%
EPS Next 5Y16.21%
Revenue Next Year33.25%
Revenue Next 2Y20.56%
Revenue Next 3Y15.99%
Revenue Next 5Y12.89%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HEI is valuated quite expensively with a Price/Earnings ratio of 81.33.
Compared to the rest of the industry, the Price/Earnings ratio of HEI is on the same level as its industry peers.
HEI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.96.
HEI is valuated quite expensively with a Price/Forward Earnings ratio of 64.04.
HEI's Price/Forward Earnings ratio is in line with the industry average.
HEI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.33 | ||
| Fwd PE | 64.04 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA ratio is in line with the industry average.
HEI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.93 | ||
| EV/EBITDA | 41.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent 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 19.36% in the coming years.
PEG (NY)3.19
PEG (5Y)7.7
EPS Next 2Y21.37%
EPS Next 3Y19.36%
5. Dividend
5.1 Amount
HEI has a yearly dividend return of 0.08%, which is pretty low.
Compared to an average industry Dividend Yield of 1.49, 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
The dividend of HEI is nicely growing with an annual growth rate of 11.36%!
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)11.36%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI pays out 6.08% 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.
DP6.08%
EPS Next 2Y21.37%
EPS Next 3Y19.36%
HEICO CORP
NYSE:HEI (11/21/2024, 8:04:00 PM)
After market: 277.35 0 (0%)277.35
-0.07 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.33 | ||
| Fwd PE | 64.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.19
PEG (5Y)7.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 13.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.19% | ||
| PM (TTM) | 12.64% | ||
| GM | 38.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.3 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.59%
EPS 3Y8.69%
EPS 5Y
EPS Q2Q%
EPS Next Y25.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)43.13%
Revenue growth 3Y18.43%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y