HEICO CORP (HEI) Fundamental Analysis & Valuation

NYSE:HEI • US4228061093

Current stock price

292.25 USD
+3.8 (+1.32%)
Last:

This HEI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. HEI Profitability Analysis

1.1 Basic Checks

  • In the past year HEI was profitable.
  • 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.
HEI Yearly Net Income VS EBIT VS OCF VS FCFHEI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • HEI has a better Return On Assets (7.88%) than 82.05% of its industry peers.
  • HEI has a better Return On Equity (15.83%) than 78.21% of its industry peers.
  • With a decent Return On Invested Capital value of 10.60%, HEI is doing good in the industry, outperforming 79.49% of the companies in the same industry.
  • HEI had an Average Return On Invested Capital over the past 3 years of 9.64%. This is in line with the industry average of 9.32%.
  • The last Return On Invested Capital (10.60%) for HEI is above the 3 year average (9.64%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.88%
ROE 15.83%
ROIC 10.6%
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
HEI Yearly ROA, ROE, ROICHEI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • HEI's Profit Margin of 15.38% is amongst the best of the industry. HEI outperforms 89.74% of its industry peers.
  • In the last couple of years the Profit Margin of HEI has declined.
  • With an excellent Operating Margin value of 22.71%, HEI belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HEI has grown nicely.
  • HEI has a Gross Margin of 39.62%. This is in the better half of the industry: HEI outperforms 76.92% of its industry peers.
  • In the last couple of years the Gross Margin of HEI has remained more or less at the same level.
Industry RankSector Rank
OM 22.71%
PM (TTM) 15.38%
GM 39.62%
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
HEI Yearly Profit, Operating, Gross MarginsHEI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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6

2. HEI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEI is creating some value.
  • Compared to 1 year ago, HEI has more shares outstanding
  • 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.
HEI Yearly Shares OutstandingHEI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
HEI Yearly Total Debt VS Total AssetsHEI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 7.03 indicates that HEI is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 7.03, HEI is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
  • HEI has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as HEI would need 2.98 years to pay back of all of its debts.
  • HEI has a Debt to FCF ratio of 2.98. This is amongst the best in the industry. HEI outperforms 83.33% of its industry peers.
  • HEI has a Debt/Equity ratio of 0.56. This is a neutral value indicating HEI is somewhat dependend on debt financing.
  • HEI has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: HEI outperforms 43.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.98
Altman-Z 7.03
ROIC/WACC1.09
WACC9.74%
HEI Yearly LT Debt VS Equity VS FCFHEI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 3.06 indicates that HEI has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 3.06, HEI is in line with its industry, outperforming 58.97% of the companies in the same industry.
  • A Quick Ratio of 1.41 indicates that HEI should not have too much problems paying its short term obligations.
  • The Quick ratio of HEI (1.41) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 3.06
Quick Ratio 1.41
HEI Yearly Current Assets VS Current LiabilitesHEI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. HEI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 25.37% over the past year.
  • The Earnings Per Share has been growing by 16.50% 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 16.08%.
  • Measured over the past years, HEI shows a very strong growth in Revenue. The Revenue has been growing by 20.21% on average per year.
EPS 1Y (TTM)25.37%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%12.5%
Revenue 1Y (TTM)16.08%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%14.4%

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 18.60% on average per year.
  • The Revenue is expected to grow by 10.46% on average over the next years. This is quite good.
EPS Next Y15.04%
EPS Next 2Y13.86%
EPS Next 3Y13.58%
EPS Next 5Y18.6%
Revenue Next Year12.96%
Revenue Next 2Y9.02%
Revenue Next 3Y7.93%
Revenue Next 5Y10.46%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same 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.
HEI Yearly Revenue VS EstimatesHEI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
HEI Yearly EPS VS EstimatesHEI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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3

4. HEI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 57.76, HEI can be considered very expensive at the moment.
  • HEI's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of HEI to the average of the S&P500 Index (25.71), we can say HEI is valued expensively.
  • HEI is valuated quite expensively with a Price/Forward Earnings ratio of 45.86.
  • The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
  • The average S&P500 Price/Forward Earnings ratio is at 23.83. HEI is valued rather expensively when compared to this.
Industry RankSector Rank
PE 57.76
Fwd PE 45.86
HEI Price Earnings VS Forward Price EarningsHEI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 a bit cheaper when compared to the industry. HEI is cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 48.49
EV/EBITDA 33.91
HEI Per share dataHEI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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 excellent profitability rating of HEI may justify a higher PE ratio.
  • HEI's earnings are expected to grow with 13.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.84
PEG (5Y)3.5
EPS Next 2Y13.86%
EPS Next 3Y13.58%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. HEI Dividend Analysis

5.1 Amount

  • HEI has a yearly dividend return of 0.08%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.65, 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 1.91.
Industry RankSector Rank
Dividend Yield 0.08%

5.2 History

  • On average, the dividend of HEI grows each year by 7.53%, 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)7.53%
Div Incr Years7
Div Non Decr Years7
HEI Yearly Dividends per shareHEI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.05 0.1 0.15 0.2

5.3 Sustainability

  • HEI pays out 4.69% 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.
DP4.69%
EPS Next 2Y13.86%
EPS Next 3Y13.58%
HEI Yearly Income VS Free CF VS DividendHEI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
HEI Dividend Payout.HEI Dividend Payout, showing the Payout Ratio.HEI Dividend Payout.PayoutRetained Earnings

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HEI Fundamentals: All Metrics, Ratios and Statistics

HEICO CORP

NYSE:HEI (3/16/2026, 10:18:45 AM)

292.25

+3.8 (+1.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-27
Earnings (Next)05-25
Inst Owners75.38%
Inst Owner Change4.14%
Ins Owners22.62%
Ins Owner Change3.64%
Market Cap40.77B
Revenue(TTM)4.63B
Net Income(TTM)712.62M
Analysts78.46
Price Target379.94 (30.01%)
Short Float %5.08%
Short Ratio3.5
Dividend
Industry RankSector Rank
Dividend Yield 0.08%
Yearly Dividend0.23
Dividend Growth(5Y)7.53%
DP4.69%
Div Incr Years7
Div Non Decr Years7
Ex-Date01-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.69%
Min EPS beat(2)1.74%
Max EPS beat(2)5.63%
EPS beat(4)4
Avg EPS beat(4)6.15%
Min EPS beat(4)1.74%
Max EPS beat(4)9.81%
EPS beat(8)7
Avg EPS beat(8)7.74%
EPS beat(12)11
Avg EPS beat(12)7.09%
EPS beat(16)13
Avg EPS beat(16)4.51%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.96%
Max Revenue beat(2)0.03%
Revenue beat(4)3
Avg Revenue beat(4)0.8%
Min Revenue beat(4)-0.96%
Max Revenue beat(4)2.31%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)7
Avg Revenue beat(12)0.76%
Revenue beat(16)11
Avg Revenue beat(16)1%
PT rev (1m)0%
PT rev (3m)7.03%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)0.92%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)3.31%
Valuation
Industry RankSector Rank
PE 57.76
Fwd PE 45.86
P/S 8.8
P/FCF 48.49
P/OCF 44.81
P/B 9.05
P/tB N/A
EV/EBITDA 33.91
EPS(TTM)5.06
EY1.73%
EPS(NY)6.37
Fwd EY2.18%
FCF(TTM)6.03
FCFY2.06%
OCF(TTM)6.52
OCFY2.23%
SpS33.21
BVpS32.28
TBVpS-7.49
PEG (NY)3.84
PEG (5Y)3.5
Graham Number60.62
Profitability
Industry RankSector Rank
ROA 7.88%
ROE 15.83%
ROCE 12.78%
ROIC 10.6%
ROICexc 10.95%
ROICexgc 36.01%
OM 22.71%
PM (TTM) 15.38%
GM 39.62%
FCFM 18.15%
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
ROICexc(3y)9.9%
ROICexc(5y)10.38%
ROICexgc(3y)33.39%
ROICexgc(5y)33.47%
ROCE(3y)11.62%
ROCE(5y)12.13%
ROICexgc growth 3Y-0.02%
ROICexgc growth 5Y1.82%
ROICexc growth 3Y-0.9%
ROICexc growth 5Y1.04%
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
F-Score8
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.98
Debt/EBITDA 2
Cap/Depr 34.38%
Cap/Sales 1.49%
Interest Coverage 250
Cash Conversion 72.61%
Profit Quality 117.99%
Current Ratio 3.06
Quick Ratio 1.41
Altman-Z 7.03
F-Score8
WACC9.74%
ROIC/WACC1.09
Cap/Depr(3y)36.14%
Cap/Depr(5y)36.1%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.64%
Profit Quality(3y)114.39%
Profit Quality(5y)120.24%
High Growth Momentum
Growth
EPS 1Y (TTM)25.37%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%12.5%
EPS Next Y15.04%
EPS Next 2Y13.86%
EPS Next 3Y13.58%
EPS Next 5Y18.6%
Revenue 1Y (TTM)16.08%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%14.4%
Revenue Next Year12.96%
Revenue Next 2Y9.02%
Revenue Next 3Y7.93%
Revenue Next 5Y10.46%
EBIT growth 1Y19.75%
EBIT growth 3Y27.05%
EBIT growth 5Y22.02%
EBIT Next Year35.42%
EBIT Next 3Y17.48%
EBIT Next 5Y19.29%
FCF growth 1Y94.74%
FCF growth 3Y25.49%
FCF growth 5Y17.4%
OCF growth 1Y88.1%
OCF growth 3Y25.93%
OCF growth 5Y17.96%

HEICO CORP / HEI Fundamental Analysis FAQ

What is the ChartMill fundamental rating of HEICO CORP (HEI) stock?

ChartMill assigns a fundamental rating of 7 / 10 to HEI.


Can you provide the valuation status for HEICO CORP?

ChartMill assigns a valuation rating of 3 / 10 to HEICO CORP (HEI). This can be considered as Overvalued.


Can you provide the profitability details for HEICO CORP?

HEICO CORP (HEI) has a profitability rating of 8 / 10.


Can you provide the financial health for HEI stock?

The financial health rating of HEICO CORP (HEI) is 6 / 10.


What is the earnings growth outlook for HEICO CORP?

The Earnings per Share (EPS) of HEICO CORP (HEI) is expected to grow by 15.04% in the next year.