NYSE:HEI

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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 Analysis

Flawless balance sheet with solid track record.


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

Stable Share Price: HEI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.04%

HEI

0.04%

US Aerospace & Defense

4.3%

US Market


1 Year Return

-25.5%

HEI

-26.0%

US Aerospace & Defense

7.4%

US Market

Return vs Industry: HEI exceeded the US Aerospace & Defense industry which returned -27.4% over the past year.

Return vs Market: HEI underperformed the US Market which returned 5% over the past year.


Shareholder returns

HEIIndustryMarket
7 Day0.04%0.04%4.3%
30 Day-11.9%-11.7%0.5%
90 Day26.9%5.2%23.0%
1 Year-25.3%-25.5%-11.4%-26.0%9.7%7.4%
3 Year109.5%108.6%10.7%-12.9%38.3%29.2%
5 Year243.5%240.3%48.8%9.6%66.0%47.6%

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

Valuation

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

37.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HEI ($100.75) is trading above our estimate of fair value ($60.78)

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 (37.2x) compared to the Aerospace & Defense industry average (15.9x).

PE vs Market: HEI is poor value based on its PE Ratio (37.2x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: HEI is poor value based on its PEG Ratio (15.1x)


Price to Book Ratio

PB vs Industry: HEI is overvalued based on its PB Ratio (7.3x) compared to the US Aerospace & Defense industry average (2.2x).


Next Steps

Future Growth

How is HEICO forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEI's forecast earnings growth (2.5% per year) is above the savings rate (2.2%).

Earnings vs Market: HEI's earnings (2.5% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: HEI's revenue (6.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: HEI's revenue (6.7% 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 (16.2%).


Next Steps

Past Performance

How has HEICO performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEI has high quality earnings.

Growing Profit Margin: HEI's current net profit margins (17.8%) are higher than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: HEI's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: HEI's earnings growth over the past year (23.1%) exceeds its 5-year average (23.1% per year).

Earnings vs Industry: HEI earnings growth over the past year (23.1%) exceeded the Aerospace & Defense industry 4.2%.


Return on Equity

High ROE: HEI's Return on Equity (18.8%) is considered low.


Next Steps

Financial Health

How is HEICO's financial position?


Financial Position Analysis

Short Term Liabilities: HEI's short term assets ($1.1B) exceed its short term liabilities ($256.4M).

Long Term Liabilities: HEI's short term assets ($1.1B) exceed its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: HEI's debt to equity ratio (35.4%) is considered satisfactory.

Reducing Debt: HEI's debt to equity ratio has reduced from 36.3% to 35.4% over the past 5 years.

Debt Coverage: HEI's debt is well covered by operating cash flow (62.9%).

Interest Coverage: HEI's interest payments on its debt are well covered by EBIT (24.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEI's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: HEI's dividend (0.16%) is low compared to the top 25% of dividend payers in the US market (4.5%).


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?

10.8yrs

Average management tenure


CEO

Laurans Mendelson (82yo)

30.42yrs

Tenure

US$10,204,504

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 ($USD10.20M) is about average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Laurans's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Laurans Mendelson
Chairman of the Board & CEO30.42yrsUS$10.20m2.95% $354.9m
Eric Mendelson
Co-President & Director28.5yrsUS$4.01m1.73% $207.7m
Victor Mendelson
Co-President & Director24.5yrsUS$4.01m1.77% $212.5m
Carlos Macau
Executive VP8.08yrsUS$2.68m0.010% $1.2m
Steven Walker
Chief Accounting Officer & Assistant Treasurer8.08yrsUS$682.58k0.018% $2.2m
Joseph Pallot
General Counsel11.83yrsUS$78.00kno data
Thomas Irwin
Senior Executive Vice President28.83yrsUS$186.89k0.056% $6.8m
Elizabeth Letendre
Corporate Secretaryno datano datano data

10.8yrs

Average Tenure

56yo

Average Age

Experienced Management: HEI's management team is seasoned and experienced (10.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Laurans Mendelson
Chairman of the Board & CEO30.42yrsUS$10.20m2.95% $354.9m
Eric Mendelson
Co-President & Director28.5yrsUS$4.01m1.73% $207.7m
Victor Mendelson
Co-President & Director24.5yrsUS$4.01m1.77% $212.5m
Julie Neitzel
Independent Director5.83yrsUS$226.05k0.013% $1.6m
Adolfo Henriques
Independent Director9.33yrsUS$223.65k0.024% $2.8m
Alan Schriesheim
Independent Director36.5yrsUS$275.65k0.065% $7.8m
Thomas Culligan
Independent Director5.83yrsUS$230.88k0.0096% $1.2m
Frank Schwitter
Independent Director13.58yrsUS$221.25k0.0015% $184.2k
Mark Hildebrandt
Independent Director11.83yrsUS$284.45k0.041% $4.9m

13.6yrs

Average Tenure

66yo

Average Age

Experienced Board: HEI's board of directors are seasoned and experienced ( 13.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HEI insiders have only sold shares 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 company bio, 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$12.037b
  • Shares outstanding: 134.75m
  • 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
HC1ADB (Deutsche Boerse AG)Class A Common StockDEEURApr 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 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. Its Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio interference shielding; high-speed interface products; high voltage interconnection devices; high voltage advanced power electronics; power conversion products; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; three-dimensional microelectronic and stacked memory products; harsh environment connectivity products and custom molded cable assemblies; radio frequency and microwave amplifiers, transmitters, and receivers; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems; and nuclear radiation detectors. The company serves the U.S. and foreign military agencies; prime defense contractors; and commercial and defense satellite and spacecraft manufacturers. HEICO Corporation was founded in 1957 and is headquartered in Hollywood, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 23:55
End of Day Share Price2020/07/06 00:00
Earnings2020/04/30
Annual Earnings2019/10/31


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.