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HEI

HEICONYSE:HEI Stock Report

Market Cap

US$17.6b

7D

0.4%

1Y

23.2%

Updated

23 Oct, 2021

Data

Company Financials +
HEI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends0/6

HEI Overview

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

Rewards

Earnings are forecast to grow 14.91% per year

Risk Analysis

HEI passed our risk checks.

HEICO Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HEICO
Historical stock prices
Current Share PriceUS$140.54
52 Week HighUS$102.64
52 Week LowUS$148.95
Beta1.21
1 Month Change5.98%
3 Month Change3.35%
1 Year Change23.19%
3 Year Change70.23%
5 Year Change307.08%
Change since IPO44,533.16%

Recent News & Updates

Oct 11
Are HEICO Corporation (NYSE:HEI) Investors Paying Above The Intrinsic Value?

Are HEICO Corporation (NYSE:HEI) Investors Paying Above The Intrinsic Value?

Today we will run through one way of estimating the intrinsic value of HEICO Corporation ( NYSE:HEI ) by taking the...

Sep 28
Is It Time To Consider Buying HEICO Corporation (NYSE:HEI)?

Is It Time To Consider Buying HEICO Corporation (NYSE:HEI)?

Today we're going to take a look at the well-established HEICO Corporation ( NYSE:HEI ). The company's stock saw a...

Aug 27
Is HEICO (NYSE:HEI) Using Too Much Debt?

Is HEICO (NYSE:HEI) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 27

HEICO - Uncertainty Is Keeping A Lid On The Stock Price

HEICO had a good 2Q21 quarter thanks to a return in demand, strong free cash flow, and an even healthier balance sheet. The company is on pace to achieve pre-pandemic sales and EBITDA in 2022 despite below-average aerospace sentiment. Over the next few months, I expect that HEI's stock price will remain below its highs as economic uncertainty is rising.

Shareholder Returns

HEIUS Aerospace & DefenseUS Market
7D0.4%1.4%1.7%
1Y23.2%31.0%30.3%

Return vs Industry: HEI underperformed the US Aerospace & Defense industry which returned 31.1% over the past year.

Return vs Market: HEI underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is HEI's price volatile compared to industry and market?
HEI volatility
HEI Beta1.21
Industry Beta1.03
Market Beta1

Stable Share Price: HEI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HEI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19575,200Laurans Mendelsonhttps://www.heico.com

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 Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial aircraft, as well as for avionics and navigation systems, subcomponents, and other instruments utilized on military aircraft.

HEICO Fundamentals Summary

How do HEICO's earnings and revenue compare to its market cap?
HEI fundamental statistics
Market CapUS$17.63b
Earnings (TTM)US$280.49m
Revenue (TTM)US$1.78b

67.8x

P/E Ratio

10.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HEI income statement (TTM)
RevenueUS$1.78b
Cost of RevenueUS$1.10b
Gross ProfitUS$684.63m
ExpensesUS$404.15m
EarningsUS$280.49m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.07
Gross Margin38.41%
Net Profit Margin15.74%
Debt/Equity Ratio15.3%

How did HEI perform over the long term?

See historical performance and comparison

Dividends

0.1%

Current Dividend Yield

8%

Payout Ratio

Valuation

Is HEICO undervalued compared to its fair value and its price relative to the market?

67.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HEI ($140.54) is trading above our estimate of fair value ($105.88)

Significantly Below Fair Value: HEI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HEI is poor value based on its PE Ratio (67.8x) compared to the US Aerospace & Defense industry average (20.6x).

PE vs Market: HEI is poor value based on its PE Ratio (67.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HEI is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: HEI is overvalued based on its PB Ratio (8.7x) compared to the US Aerospace & Defense industry average (3.1x).


Future Growth

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

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEI's forecast earnings growth (14.9% per year) is above the savings rate (2%).

Earnings vs Market: HEI's earnings (14.9% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: HEI's earnings are forecast to grow, but not significantly.

Revenue vs Market: HEI's revenue (13% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: HEI's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HEI's Return on Equity is forecast to be low in 3 years time (15.9%).


Past Performance

How has HEICO performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEI has high quality earnings.

Growing Profit Margin: HEI's current net profit margins (15.7%) are lower than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: HEI's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: HEI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HEI had negative earnings growth (-16.9%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (1.8%).


Return on Equity

High ROE: HEI's Return on Equity (12.4%) is considered low.


Financial Health

How is HEICO's financial position?


Financial Position Analysis

Short Term Liabilities: HEI's short term assets ($1.0B) exceed its short term liabilities ($262.2M).

Long Term Liabilities: HEI's short term assets ($1.0B) exceed its long term liabilities ($754.6M).


Debt to Equity History and Analysis

Debt Level: HEI's debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: HEI's debt to equity ratio has reduced from 46.1% to 15.3% over the past 5 years.

Debt Coverage: HEI's debt is well covered by operating cash flow (118.5%).

Interest Coverage: HEI's interest payments on its debt are well covered by EBIT (42.1x coverage).


Balance Sheet


Dividend

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

0.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEI's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: HEI's dividend (0.13%) is low compared to the top 25% of dividend payers in the US market (3.47%).


Stability and Growth of Payments

Stable Dividend: HEI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: HEI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HEI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HEI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.0yrs

Average management tenure


CEO

Laurans Mendelson (83 yo)

31.67yrs

Tenure

US$2,941,765

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

Compensation vs Market: Laurans's total compensation ($USD2.94M) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Laurans's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HEI's management team is seasoned and experienced (12 years average tenure).


Board Members

Experienced Board: HEI's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HEI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: HEICO Corporation
  • Ticker: HEI
  • Exchange: NYSE
  • Founded: 1957
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$17.631b
  • Shares outstanding: 135.38m
  • Website: https://www.heico.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 22:18
End of Day Share Price2021/10/22 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


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.