HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
331.11 USD
-7.45 (-2.2%)
331.11 USD
0 (0%)
HEI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 73 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 expensively, but it does show have an excellent growth rating. These ratings could make HEI a good candidate 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.
- HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.12%, HEI belongs to the top of the industry, outperforming 84.93% of the companies in the same industry.
- HEI has a better Return On Equity (16.04%) than 80.82% of its industry peers.
- The Return On Invested Capital of HEI (11.03%) is better than 84.93% 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 8.56%.
- The 3 year average ROIC (9.64%) for HEI is below the current ROIC(11.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROIC | 11.03% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.39%, HEI belongs to the top of the industry, outperforming 93.15% 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 22.72%, HEI belongs to the best of the industry, outperforming 91.78% 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 39.83%. This is in the better half of the industry: HEI outperforms 79.45% of its industry peers.
- HEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% |
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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI is still creating some value.
- The number of shares outstanding for HEI has been increased compared to 1 year ago.
- HEI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.48 indicates that HEI is not in any danger for bankruptcy at the moment.
- HEI's Altman-Z score of 8.48 is fine compared to the rest of the industry. HEI outperforms 75.34% of its industry peers.
- HEI has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as HEI would need 2.52 years to pay back of all of its debts.
- HEI has a Debt to FCF ratio of 2.52. This is amongst the best in the industry. HEI outperforms 87.67% of its industry peers.
- HEI has a Debt/Equity ratio of 0.50. This is a neutral value indicating HEI is somewhat dependend on debt financing.
- HEI's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. HEI outperforms 47.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 8.48 |
ROIC/WACC1.09
WACC10.1%
2.3 Liquidity
- HEI has a Current Ratio of 2.83. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of HEI (2.83) is comparable to the rest of the industry.
- A Quick Ratio of 1.28 indicates that HEI should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.28, HEI is not doing good in the industry: 61.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 34.29% 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 16.50% yearly.
- The Revenue has grown by 16.26% in the past year. This is quite good.
- The Revenue has been growing by 20.21% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
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.
- 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 Y13.62%
EPS Next 2Y13.09%
EPS Next 3Y13.52%
EPS Next 5Y18.6%
Revenue Next Year11.72%
Revenue Next 2Y9.93%
Revenue Next 3Y9.05%
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 stable.
- 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
- With a Price/Earnings ratio of 67.44, 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 (28.60), we can say HEI is valued expensively.
- With a Price/Forward Earnings ratio of 59.29, HEI can be considered very expensive at the moment.
- HEI's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.44 | ||
| Fwd PE | 59.29 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HEI.
- 67.12% of the companies in the same industry are more expensive than HEI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.51 | ||
| EV/EBITDA | 40.39 |
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 13.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.95
PEG (5Y)4.09
EPS Next 2Y13.09%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.07%, HEI is not a good candidate for dividend investing.
- HEI's Dividend Yield is a higher than the industry average which is at 0.34.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 7.53%, which is quite nice.
- HEI has paid a dividend for at least 10 years, which is 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)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 4.63% of the earnings are spent on dividend by HEI. This is a low number and sustainable payout ratio.
- HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.63%
EPS Next 2Y13.09%
EPS Next 3Y13.52%
HEICO CORP / HEI 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 13.62% in the next year.