HEICO CORP (HEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HEI - US4228061093 - Common Stock
326.67 USD
+17.94 (+5.81%)
326.67 USD
0 (0%)
Taking everything into account, HEI scores 5 out of 10 in our fundamental rating. 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 quite expensive at the moment. It does show a decent growth rate.
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.
Of the past 5 years HEI 4 years were profitable.
Of the past 5 years HEI 4 years had a positive operating cash flow.
1.2 Ratios
HEI has a better Return On Assets (7.52%) than 81.69% of its industry peers.
HEI has a Return On Equity of 15.50%. This is amongst the best in the industry. HEI outperforms 80.28% of its industry peers.
HEI has a Return On Invested Capital of 9.98%. This is amongst the best in the industry. HEI outperforms 83.10% of its industry peers.
HEI had an Average Return On Invested Capital over the past 3 years of 9.51%. This is in line with the industry average of 8.60%.
The 3 year average ROIC (9.51%) for HEI is below the current ROIC(9.98%), indicating increased profibility in the last year.
| 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
The Profit Margin of HEI (14.96%) is better than 92.96% of its industry peers.
In the last couple of years the Profit Margin of HEI has declined.
HEI has a Operating Margin of 22.38%. This is amongst the best in the industry. HEI outperforms 92.96% of its industry peers.
In the last couple of years the Operating Margin of HEI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 39.51%, HEI is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
HEI's Gross Margin has been stable in the last couple of years.
| 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
HEI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HEI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 7.90 indicates that HEI is not in any danger for bankruptcy at the moment.
The Altman-Z score of HEI (7.90) is better than 77.46% of its industry peers.
The Debt to FCF ratio of HEI is 3.13, which is a good value as it means it would take HEI, 3.13 years of fcf income to pay off all of its debts.
HEI has a Debt to FCF ratio of 3.13. This is amongst the best in the industry. HEI outperforms 84.51% of its industry peers.
HEI has a Debt/Equity ratio of 0.59. This is a neutral value indicating HEI is somewhat dependend on debt financing.
The Debt to Equity ratio of HEI (0.59) is worse than 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 7.9 |
ROIC/WACC0.99
WACC10.03%
2.3 Liquidity
A Current Ratio of 3.35 indicates that HEI has no problem at all paying its short term obligations.
The Current ratio of HEI (3.35) is better than 64.79% of its industry peers.
A Quick Ratio of 1.51 indicates that HEI should not have too much problems paying its short term obligations.
HEI has a Quick ratio (1.51) which is in line with its industry peers.
| 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 34.15%, which is quite impressive.
The Earnings Per Share has been growing by 16.48% on average over the past years. This is quite good.
EPS 1Y (TTM)34.15%
EPS 3Y24.41%
EPS 5Y16.48%
EPS Q2Q%34.34%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 19.06% yearly.
Based on estimates for the next years, HEI will show a quite strong growth in Revenue. The Revenue will grow by 9.70% on average per year.
EPS Next Y10.99%
EPS Next 2Y11.95%
EPS Next 3Y11.52%
EPS Next 5Y19.06%
Revenue Next Year9.85%
Revenue Next 2Y8.51%
Revenue Next 3Y7.37%
Revenue Next 5Y9.7%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 66.53, which means the current valuation is very expensive for HEI.
The rest of the industry has a similar Price/Earnings ratio as HEI.
The average S&P500 Price/Earnings ratio is at 26.39. HEI is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 59.94 indicates a quite expensive valuation of HEI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HEI is on the same level as its industry peers.
HEI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.53 | ||
| Fwd PE | 59.94 |
4.2 Price Multiples
HEI's Enterprise Value to EBITDA is on the same level as 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 60.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.12 | ||
| EV/EBITDA | 41.46 |
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 decent profitability rating of HEI may justify a higher PE ratio.
PEG (NY)6.05
PEG (5Y)4.04
EPS Next 2Y11.95%
EPS Next 3Y11.52%
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 0.41.
With a Dividend Yield of 0.08, HEI pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
On average, the dividend of HEI grows each year by 8.47%, which is quite nice.
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)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.
HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.98%
EPS Next 2Y11.95%
EPS Next 3Y11.52%
326.67
+17.94 (+5.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners73.05%
Inst Owner Change0.6%
Ins Owners15.53%
Ins Owner Change3.49%
Market Cap45.48B
Revenue(TTM)N/A
Net Income(TTM)641.78M
Analysts78.33
Price Target354.97 (8.66%)
Short Float %5.3%
Short Ratio6.67
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)0.12%
PT rev (3m)-0.61%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)1.12%
EPS NY rev (1m)0.83%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.53 | ||
| Fwd PE | 59.94 | ||
| P/S | 10.6 | ||
| P/FCF | 58.12 | ||
| P/OCF | 53.85 | ||
| P/B | 10.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 41.46 |
EPS(TTM)4.91
EY1.5%
EPS(NY)5.45
Fwd EY1.67%
FCF(TTM)5.62
FCFY1.72%
OCF(TTM)6.07
OCFY1.86%
SpS30.81
BVpS29.75
TBVpS-7.31
PEG (NY)6.05
PEG (5Y)4.04
Graham Number57.33
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 | 7.9 |
F-Score8
WACC10.03%
ROIC/WACC0.99
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)34.15%
EPS 3Y24.41%
EPS 5Y16.48%
EPS Q2Q%34.34%
EPS Next Y10.99%
EPS Next 2Y11.95%
EPS Next 3Y11.52%
EPS Next 5Y19.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.31%
Revenue Next Year9.85%
Revenue Next 2Y8.51%
Revenue Next 3Y7.37%
Revenue Next 5Y9.7%
EBIT growth 1Y19.83%
EBIT growth 3Y28.41%
EBIT growth 5Y12.72%
EBIT Next Year44.7%
EBIT Next 3Y20.21%
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 5 / 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 7 / 10.
What are the PE and PB ratios of HEICO CORP (HEI) stock?
The Price/Earnings (PE) ratio for HEICO CORP (HEI) is 66.53 and the Price/Book (PB) ratio is 10.98.
How financially healthy is HEICO CORP?
The financial health rating of HEICO CORP (HEI) is 6 / 10.