HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
315.64 USD
+6.19 (+2%)
317 USD
+1.36 (+0.43%)
We assign a fundamental rating of 6 out of 10 to HEI. HEI was compared to 71 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 expensive, but it does show an excellent growth. With these ratings, HEI could be worth investigating further for growth investing!.
1. Profitability
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.
1.2 Ratios
With an excellent Return On Assets value of 7.52%, HEI belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
The Return On Equity of HEI (15.50%) is better than 80.28% of its industry peers.
The Return On Invested Capital of HEI (9.98%) is better than 83.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HEI is in line with the industry average of 8.57%.
The last Return On Invested Capital (9.98%) for HEI is above the 3 year average (9.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 15.5% | ||
| ROIC | 9.98% |
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
HEI has a Profit Margin of 14.96%. This is amongst the best in the industry. HEI outperforms 92.96% of its industry peers.
HEI's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.38%, HEI belongs to the best of the industry, outperforming 92.96% 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.
With a decent Gross Margin value of 39.51%, HEI is doing good in the industry, outperforming 78.87% of the companies in the same industry.
In the last couple of years the Gross Margin of HEI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.38% | ||
| PM (TTM) | 14.96% | ||
| GM | 39.51% |
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 just above the Cost of Capital (WACC), so HEI is still creating some value.
Compared to 1 year ago, HEI has more shares outstanding
Compared to 5 years ago, HEI has more shares outstanding
Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.69 indicates that HEI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.69, HEI is doing good in the industry, outperforming 74.65% of the companies in the same industry.
HEI has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as HEI would need 3.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.13, HEI belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that HEI is somewhat dependend on debt financing.
HEI has a worse Debt to Equity ratio (0.59) than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.69 |
ROIC/WACC1.03
WACC9.69%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI has no problem at all paying its short term obligations.
HEI has a Current ratio of 3.35. This is in the better half of the industry: HEI outperforms 67.61% of its industry peers.
A Quick Ratio of 1.51 indicates that HEI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, HEI is in line with its industry, outperforming 57.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.02%, which is quite impressive.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
The Revenue has grown by 13.46% in the past year. This is quite good.
The Revenue has been growing by 13.42% on average over the past years. This is quite good.
EPS 1Y (TTM)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
3.2 Future
HEI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.94% yearly.
HEI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.46% yearly.
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
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 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
With a Price/Earnings ratio of 69.07, HEI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HEI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HEI to the average of the S&P500 Index (26.41), we can say HEI is valued expensively.
With a Price/Forward Earnings ratio of 58.45, HEI can be considered very expensive at the moment.
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 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.07 | ||
| Fwd PE | 58.45 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as HEI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.16 | ||
| EV/EBITDA | 40.12 |
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 18.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.18
PEG (5Y)7.76
EPS Next 2Y21.47%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, HEI is not a good candidate for dividend investing.
HEI's Dividend Yield is a higher than the industry average which is at 1.14.
With a Dividend Yield of 0.08, HEI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
The dividend of HEI is nicely growing with an annual growth rate of 8.47%!
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)8.47%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HEI pays out 4.98% 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.
DP4.98%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
315.64
+6.19 (+2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.22%
Inst Owner Change0.56%
Ins Owners22.66%
Ins Owner Change2.3%
Market Cap43.94B
Revenue(TTM)4.29B
Net Income(TTM)641.78M
Analysts79.13
Price Target356.29 (12.88%)
Short Float %5.34%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.21
Dividend Growth(5Y)8.47%
DP4.98%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.61%
Min EPS beat(2)7.42%
Max EPS beat(2)9.81%
EPS beat(4)3
Avg EPS beat(4)10.62%
Min EPS beat(4)-0.23%
Max EPS beat(4)25.49%
EPS beat(8)7
Avg EPS beat(8)8.67%
EPS beat(12)10
Avg EPS beat(12)6.19%
EPS beat(16)13
Avg EPS beat(16)4.61%
Revenue beat(2)2
Avg Revenue beat(2)2.07%
Min Revenue beat(2)1.83%
Max Revenue beat(2)2.31%
Revenue beat(4)3
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)4.12%
Revenue beat(8)4
Avg Revenue beat(8)0.93%
Revenue beat(12)8
Avg Revenue beat(12)1.23%
Revenue beat(16)10
Avg Revenue beat(16)0.94%
PT rev (1m)-1.25%
PT rev (3m)8.28%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)0%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.07 | ||
| Fwd PE | 58.45 | ||
| P/S | 10.24 | ||
| P/FCF | 56.16 | ||
| P/OCF | 52.03 | ||
| P/B | 10.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.12 |
EPS(TTM)4.57
EY1.45%
EPS(NY)5.4
Fwd EY1.71%
FCF(TTM)5.62
FCFY1.78%
OCF(TTM)6.07
OCFY1.92%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)2.18
PEG (5Y)7.76
Graham Number55.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 15.5% | ||
| ROCE | 12.28% | ||
| ROIC | 9.98% | ||
| ROICexc | 10.32% | ||
| ROICexgc | 32.53% | ||
| OM | 22.38% | ||
| PM (TTM) | 14.96% | ||
| GM | 39.51% | ||
| FCFM | 18.24% |
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%
ROICexgc growth 3Y3.12%
ROICexgc 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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 32.77% | ||
| Cap/Sales | 1.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.46% | ||
| Profit Quality | 121.92% | ||
| Current Ratio | 3.35 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 7.69 |
F-Score8
WACC9.69%
ROIC/WACC1.03
Cap/Depr(3y)34.81%
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)34.02%
EPS 3Y18.49%
EPS 5Y8.9%
EPS Q2Q%29.9%
EPS Next Y31.63%
EPS Next 2Y21.47%
EPS Next 3Y18.44%
EPS Next 5Y21.94%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y27.4%
Revenue growth 5Y13.42%
Sales Q2Q%15.66%
Revenue Next Year13.49%
Revenue Next 2Y11.63%
Revenue Next 3Y10.08%
Revenue Next 5Y10.46%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.27%
EBIT Next 5Y20.69%
FCF growth 1Y94.39%
FCF growth 3Y14.61%
FCF growth 5Y8.5%
OCF growth 1Y90.09%
OCF growth 3Y14.83%
OCF growth 5Y8.98%
HEICO CORP / HEI FAQ
Can you provide the ChartMill fundamental rating for HEICO CORP?
ChartMill assigns a fundamental rating of 6 / 10 to HEI.
What is the valuation status for HEI stock?
ChartMill assigns a valuation rating of 2 / 10 to HEICO CORP (HEI). This can be considered as Overvalued.
What is the profitability of HEI stock?
HEICO CORP (HEI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of HEICO CORP (HEI) stock?
The Price/Earnings (PE) ratio for HEICO CORP (HEI) is 69.07 and the Price/Book (PB) ratio is 10.61.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.