HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
338.56 USD
+2.41 (+0.72%)
336.149 USD
-2.41 (-0.71%)
We assign a fundamental rating of 7 out of 10 to HEI. HEI was compared to 73 industry peers in the Aerospace & Defense industry. While HEI has a great profitability rating, 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
- HEI had positive earnings in the past year.
- In the past year HEI had a positive cash flow from operations.
- 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
- HEI has a better Return On Assets (8.12%) than 84.93% of its industry peers.
- With an excellent Return On Equity value of 16.04%, HEI belongs to the best of the industry, outperforming 80.82% of the companies in the same industry.
- HEI's Return On Invested Capital of 11.03% is amongst the best of the industry. HEI outperforms 84.93% 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 8.56%.
- The last Return On Invested Capital (11.03%) for HEI is above the 3 year average (9.64%), which is a sign of increasing profitability.
| 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
- The Profit Margin of HEI (15.39%) is better than 93.15% of its industry peers.
- HEI's Profit Margin has declined in the last couple of years.
- HEI's Operating Margin of 22.72% is amongst the best of the industry. HEI outperforms 91.78% of its industry peers.
- HEI's Operating Margin has improved in the last couple of years.
- 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.
- 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 | 22.72% | ||
| 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.
- 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.
- Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
- HEI has an Altman-Z score of 8.48. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 8.48, HEI is doing good in the industry, outperforming 75.34% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of HEI (2.52) is better than 87.67% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that HEI is somewhat dependend on debt financing.
- HEI has a Debt to Equity ratio of 0.50. This is comparable 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
WACC10.07%
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.
- 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)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
- HEI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.60% yearly.
- 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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 68.95, which means the current valuation is very expensive for HEI.
- HEI's Price/Earnings ratio is in line with the industry average.
- HEI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.87.
- HEI is valuated quite expensively with a Price/Forward Earnings ratio of 60.63.
- HEI's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. HEI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.95 | ||
| Fwd PE | 60.63 |
4.2 Price Multiples
- HEI's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEI indicates a somewhat cheap valuation: HEI is cheaper than 67.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.72 | ||
| EV/EBITDA | 40.39 |
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.
- The excellent 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 13.52% in the coming years.
PEG (NY)5.06
PEG (5Y)4.18
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.
- With a Dividend Yield of 0.07, HEI pays less dividend than the S&P500 average, which is at 1.82.
| 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 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
5.3 Sustainability
- HEI pays out 4.63% 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.
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.