HEICO CORP (HEI) Fundamental Analysis & Valuation
NYSE:HEI • US4228061093
Current stock price
279.09 USD
-1.6 (-0.57%)
At close:
279.09 USD
0 (0%)
After Hours:
This HEI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- HEI had positive earnings in each of the past 5 years.
- In the past 5 years HEI always reported a positive cash flow from operatings.
1.2 Ratios
- HEI's Return On Assets of 7.88% is amongst the best of the industry. HEI outperforms 82.28% of its industry peers.
- Looking at the Return On Equity, with a value of 15.83%, HEI is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
- HEI's Return On Invested Capital of 10.60% is fine compared to the rest of the industry. HEI outperforms 78.48% of its industry peers.
- 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 9.24%.
- The 3 year average ROIC (9.64%) for HEI is below the current ROIC(10.60%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- HEI's Profit Margin of 15.38% is amongst the best of the industry. HEI outperforms 89.87% of its industry peers.
- In the last couple of years the Profit Margin of HEI has declined.
- HEI has a Operating Margin of 22.71%. This is amongst the best in the industry. HEI outperforms 87.34% of its industry peers.
- 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 77.22% 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 | 22.71% | ||
| 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%
2. HEI Health Analysis
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 6.88 indicates that HEI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.88, HEI is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
- The Debt to FCF ratio of HEI is 2.98, which is a good value as it means it would take HEI, 2.98 years of fcf income to pay off all of its debts.
- HEI's Debt to FCF ratio of 2.98 is amongst the best of the industry. HEI outperforms 82.28% 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.
- With a Debt to Equity ratio value of 0.56, HEI perfoms like the industry average, outperforming 44.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 6.88 |
ROIC/WACC1.04
WACC10.2%
2.3 Liquidity
- HEI has a Current Ratio of 3.06. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
- HEI has a Current ratio (3.06) which is comparable to the rest of the industry.
- A Quick Ratio of 1.41 indicates that HEI should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.41, HEI is in line with its industry, outperforming 43.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.41 |
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.
- Looking at the last year, HEI shows a quite strong growth in Revenue. The Revenue has grown by 16.08% in the last year.
- The Revenue has been growing by 20.21% on average over the past years. This is a very strong growth!
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.
- 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 Y15.04%
EPS Next 2Y13.86%
EPS Next 3Y13.58%
EPS Next 5Y18.6%
Revenue Next Year13.42%
Revenue Next 2Y10.95%
Revenue Next 3Y9.6%
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.
4. HEI Valuation Analysis
4.1 Price/Earnings Ratio
- HEI is valuated quite expensively with a Price/Earnings ratio of 55.16.
- 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 (25.61), we can say HEI is valued expensively.
- With a Price/Forward Earnings ratio of 43.80, HEI can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as HEI.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, HEI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.16 | ||
| Fwd PE | 43.8 |
4.2 Price Multiples
- HEI's Enterprise Value to EBITDA is on the same level as the industry average.
- HEI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HEI is cheaper than 68.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.31 | ||
| EV/EBITDA | 33.05 |
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.
- A more expensive valuation may be justified as HEI's earnings are expected to grow with 13.58% in the coming years.
PEG (NY)3.67
PEG (5Y)3.34
EPS Next 2Y13.86%
EPS Next 3Y13.58%
5. HEI Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.09%, HEI is not a good candidate for dividend investing.
- HEI's Dividend Yield is a higher than the industry average which is at 0.36.
- With a Dividend Yield of 0.09, HEI pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
5.2 History
- The dividend of HEI is nicely growing with an annual growth rate of 7.53%!
- HEI has paid a dividend for at least 10 years, which is 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 4.69% 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 Fundamentals: All Metrics, Ratios and Statistics
279.09
-1.6 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-27 2026-02-27/amc
Earnings (Next)05-25 2026-05-25
Inst Owners75.38%
Inst Owner Change4.14%
Ins Owners22.62%
Ins Owner Change3.64%
Market Cap38.94B
Revenue(TTM)4.63B
Net Income(TTM)712.62M
Analysts78.46
Price Target379.94 (36.14%)
Short Float %5.08%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.23
Dividend Growth(5Y)7.53%
DP4.69%
Div Incr Years7
Div Non Decr Years7
Ex-Date01-05 2026-01-05 (0.12)
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)3.88%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0.92%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)2.1%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.16 | ||
| Fwd PE | 43.8 | ||
| P/S | 8.4 | ||
| P/FCF | 46.31 | ||
| P/OCF | 42.8 | ||
| P/B | 8.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.05 |
EPS(TTM)5.06
EY1.81%
EPS(NY)6.37
Fwd EY2.28%
FCF(TTM)6.03
FCFY2.16%
OCF(TTM)6.52
OCFY2.34%
SpS33.21
BVpS32.27
TBVpS-7.49
PEG (NY)3.67
PEG (5Y)3.34
Graham Number60.62
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.88 |
F-Score8
WACC10.2%
ROIC/WACC1.04
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 Year13.42%
Revenue Next 2Y10.95%
Revenue Next 3Y9.6%
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.