DB:HC1

Stock Analysis Report

Executive Summary

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.

Risks

  • HEICO has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has HEICO's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.3%

DB:HC1

2.3%

DE Aerospace & Defense

3.2%

DE Market


1 Year Return

87.1%

DB:HC1

6.3%

DE Aerospace & Defense

-9.7%

DE Market

HC1 outperformed the Aerospace & Defense industry which returned 8.7% over the past year.

HC1 outperformed the Market in Germany which returned -9.6% over the past year.


Share holder returns

HC1IndustryMarket
7 Day4.3%2.3%3.2%
30 Day6.2%-2.8%-4.4%
90 Day40.3%8.2%-2.0%
1 Year87.4%87.1%8.6%6.3%-6.9%-9.7%
3 Year223.9%222.1%84.4%72.6%11.8%2.2%
5 Year424.6%419.2%129.6%101.7%26.9%9.5%

Price Volatility Vs. Market

How volatile is HEICO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is HEICO undervalued based on future cash flows and its price relative to the stock market?

65.1x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

HEICO's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

HEICO's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

HEICO is overvalued based on earnings compared to the Europe Aerospace & Defense industry average.

HEICO is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

HEICO is poor value based on expected growth next year.


Price Based on Value of Assets

HEICO is overvalued based on assets compared to the Europe Aerospace & Defense industry average.


Next Steps

Future Growth

How is HEICO expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HEICO's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).

HEICO's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).

HEICO's revenue growth is expected to exceed the Germany market average.

HEICO's earnings growth is positive but not above the Germany market average.

HEICO's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

HEICO is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has HEICO performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

HEICO's year on year earnings growth rate has been positive over the past 5 years.

HEICO's 1-year earnings growth exceeds its 5-year average (31.9% vs 19.6%)

HEICO's earnings growth has exceeded the Europe Aerospace & Defense industry average in the past year (31.9% vs 12.8%).


Return on Equity

HEICO has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

HEICO used its assets more efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

HEICO has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is HEICO's financial position?


Financial Position Analysis

HEICO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

HEICO's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

HEICO's level of debt (30.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (57.7% vs 30.2% today).

Debt is well covered by operating cash flow (73.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 20.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

What is HEICO's current dividend yield, its reliability and sustainability?

0.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

HEICO's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.51%).

HEICO's dividend is below the markets top 25% of dividend payers in Germany (4.17%).

HEICO is not paying a notable dividend for Germany, therefore no need to check if the payments are stable.

HEICO is not paying a notable dividend for Germany, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of HEICO's dividends as it is not paying a notable one for Germany.


Future Payout to Shareholders

No need to calculate the sustainability of HEICO's dividends in 3 years as they are not expected to pay a notable one for Germany.


Next Steps

Management

What is the CEO of HEICO's salary, the management and board of directors tenure and is there insider trading?

10.4yrs

Average management tenure


CEO

Laurans Mendelson (81yo)

29.5yrs

Tenure

US$6,753,991

Compensation

Mr. Laurans A. Mendelson has been the Chief Executive Officer of HEICO Corporation since February 1990. Mr. Mendelson served as the Chief Executive Officer and President at HEICO Aerospace Holdings Corp. H ...


CEO Compensation Analysis

Laurans's remuneration is higher than average for companies of similar size in Germany.

Laurans's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.4yrs

Average Tenure

57yo

Average Age

The average tenure for the HEICO management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.7yrs

Average Tenure

65yo

Average Age

The average tenure for the HEICO board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$101,24523 Jan 19
Alan Schriesheim
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,445
Max PriceUS$70.07
SellUS$337,69011 Jan 19
Thomas Irwin
EntityIndividual
Role
Senior Key Executive
Senior Executive Vice President
Shares5,000
Max PriceUS$67.54
BuyUS$100,76011 Oct 18
Laurans Mendelson
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares1,311
Max PriceUS$76.86
BuyUS$100,76011 Oct 18
Victor Mendelson
EntityIndividual
Role
Member of the Board of Directors
Co-President & Director
Shares1,311
Max PriceUS$76.86
BuyUS$100,83710 Oct 18
Thomas Culligan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,312
Max PriceUS$76.86
BuyUS$100,83710 Oct 18
Mark Hildebrandt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,312
Max PriceUS$76.86
BuyUS$100,91410 Oct 18
Julie Neitzel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,313
Max PriceUS$76.86
BuyUS$100,76010 Oct 18
Adolfo Henriques
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,311
Max PriceUS$76.86
BuyUS$100,91410 Oct 18
Wolfgang Mayrhuber
EntityIndividual
Shares1,313
Max PriceUS$76.86
BuyUS$100,83710 Oct 18
Eric Mendelson
EntityIndividual
Role
Member of the Board of Directors
Co-President & Director
Shares1,312
Max PriceUS$76.86
BuyUS$100,91410 Oct 18
Frank Schwitter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,313
Max PriceUS$76.86

Ownership Breakdown


Management Team

  • Laurans Mendelson (81yo)

    Chairman of the Board & CEO

    • Tenure: 29.5yrs
    • Compensation: US$6.75m
  • Thomas Irwin (73yo)

    Senior Executive Vice President

    • Tenure: 27.9yrs
    • Compensation: US$1.58m
  • Eric Mendelson (54yo)

    Co-President & Director

    • Tenure: 27.6yrs
    • Compensation: US$7.79m
  • Victor Mendelson (52yo)

    Co-President & Director

    • Tenure: 23.6yrs
    • Compensation: US$7.79m
  • Joseph Pallot (59yo)

    General Counsel

    • Tenure: 10.9yrs
    • Compensation: US$104.05k
  • William Harlow (71yo)

    Vice President of Acquisitions

    • Tenure: 18.6yrs
    • Compensation: US$492.25k
  • steve Walker (55yo)

    Chief Accounting Officer & Assistant Treasurer

    • Tenure: 7.2yrs
    • Compensation: US$822.15k
  • Carlos Macau (52yo)

    Executive VP

    • Tenure: 7.2yrs
    • Compensation: US$4.15m

Board Members

  • Julie Neitzel (59yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$219.93k
  • Laurans Mendelson (81yo)

    Chairman of the Board & CEO

    • Tenure: 29.5yrs
    • Compensation: US$6.75m
  • Eric Mendelson (54yo)

    Co-President & Director

    • Tenure: 27.6yrs
    • Compensation: US$7.79m
  • Victor Mendelson (52yo)

    Co-President & Director

    • Tenure: 23.6yrs
    • Compensation: US$7.79m
  • Adolfo Henriques (65yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$215.13k
  • Alan Schriesheim (88yo)

    Independent Director

    • Tenure: 35.6yrs
    • Compensation: US$272.26k
  • Tom Culligan (67yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$205.57k
  • Frank Schwitter (86yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$213.61k
  • Mark Hildebrandt (63yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$277.57k

Company Information

HEICO Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HEICO Corporation
  • Ticker: HC1
  • Exchange: DB
  • Founded: 1949
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$16.566b
  • Listing Market Cap: US$14.929b
  • Shares outstanding: 133.84m
  • Website: https://www.heico.com

Number of Employees


Location

  • HEICO Corporation
  • 3000 Taft Street
  • Hollywood
  • Florida
  • 33021
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
HC1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0J46LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
HEI.ANYSE (New York Stock Exchange)Class A Common StockUSUSDApr 1998

Biography

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The company’s Flight ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 21:30
End of Day Share Price2019/08/22 00:00
Earnings2019/04/30
Annual Earnings2018/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.