NYSE:HEI

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

Excellent 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


Market Performance


7 Day Return

-3.4%

HEI

-0.2%

US Aerospace & Defense

1.8%

US Market


1 Year Return

39.6%

HEI

8.1%

US Aerospace & Defense

7.3%

US Market

Return vs Industry: HEI exceeded the US Aerospace & Defense industry which returned 8.1% over the past year.

Return vs Market: HEI exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

HEIIndustryMarket
7 Day-3.4%-0.2%1.8%
30 Day-7.2%-3.2%-0.7%
90 Day-12.0%3.7%0.06%
1 Year39.8%39.6%10.2%8.1%9.7%7.3%
3 Year256.7%254.8%60.7%52.0%46.3%36.9%
5 Year380.0%375.1%95.5%77.1%64.5%46.5%

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

Valuation

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

51.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HEI ($120.66) is trading above our estimate of fair value ($67.92)

Significantly Undervalued: 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 (51.9x) compared to the Aerospace & Defense industry average (22.4x).

PE vs Market: HEI is poor value based on its PE Ratio (51.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HEI is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: HEI is overvalued based on its PB Ratio (10x) compared to the US Aerospace & Defense industry average (2.4x).


Next Steps

Future Growth

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

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEI's forecast earnings growth (10.3% per year) is above the savings rate (2.7%).

Earnings vs Market: HEI's earnings (10.3% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: HEI's revenue (7.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HEI's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HEI's Return on Equity is forecast to be low in 3 years time (19.8%).


Next Steps

Past Performance

How has HEICO performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HEI's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: HEI's earnings growth over the past year (26.1%) exceeds its 5-year average (20.6% per year).

Earnings vs Industry: HEI earnings growth over the past year (26.1%) exceeded the Aerospace & Defense industry 12.2%.


Return on Equity

High ROE: HEI's Return on Equity (18.7%) is considered low.


Return on Assets

ROA vs Industry: HEI has a higher Return on Assets than the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: HEI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is HEICO's financial position?


Financial Position Analysis

Short Term Liabilities: HEI's short term assets ($802.6M) exceeds its short term liabilities ($269.1M)

Long Term Liabilities: HEI's short term assets (802.6M) do not cover its long term liabilities (870.4M)


Debt to Equity History and Analysis

Debt Level: HEI's debt to equity ratio (34.6%) is considered satisfactory

Reducing Debt: HEI's debt to equity ratio has reduced from 49.2% to 34.6% over the past 5 years.

Debt Coverage: HEI's debt is well covered by operating cash flow (67.7%).

Interest Coverage: HEI's interest payments on its debt are well covered by EBIT (20.7x coverage).


Balance Sheet

Inventory Level: HEI has a low level of unsold assets or inventory.

Debt Coverage by Assets: HEI's debt is covered by short term assets (assets are 1.272310x debt).


Next Steps

Dividend

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

0.12%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%1.5%markettop25%3.7%industryaverage1.8%forecastin3Years0.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HEI's dividend (0.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HEI's dividend (0.12%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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

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

10.5yrs

Average management tenure


CEO

Laurans Mendelson (81yo)

29.7yrs

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

Compensation vs. Market: Laurans's total compensation ($USD6.75M) is below average for companies of similar size in the US market ($USD11.21M).

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


Management Age and Tenure

10.5yrs

Average Tenure

57yo

Average Age

Experienced Management: HEI's management team is seasoned and experienced (10.5 years average tenure).


Board Age and Tenure

12.8yrs

Average Tenure

65yo

Average Age

Experienced Board: HEI's board of directors are seasoned and experienced ( 12.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$115,01223 Jan 19
Alan Schriesheim
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,445
Max PriceUS$79.59
SellUS$388,77511 Jan 19
Thomas Irwin
EntityIndividual
Role
Senior Key Executive
Senior Executive Vice President
Shares5,000
Max PriceUS$77.76

Ownership Breakdown


Management Team

  • Laurans Mendelson (81yo)

    Chairman of the Board & CEO

    • Tenure: 29.7yrs
    • Compensation: US$6.75m
  • Thomas Irwin (73yo)

    Senior Executive Vice President

    • Tenure: 28.1yrs
    • Compensation: US$186.89k
  • Eric Mendelson (54yo)

    Co-President & Director

    • Tenure: 27.8yrs
    • Compensation: US$7.79m
  • Victor Mendelson (52yo)

    Co-President & Director

    • Tenure: 23.8yrs
    • Compensation: US$7.79m
  • Joseph Pallot (59yo)

    General Counsel

    • Tenure: 11.1yrs
    • Compensation: US$78.00k
  • William Harlow (71yo)

    Vice President of Acquisitions

    • Tenure: 18.8yrs
    • Compensation: US$383.73k
  • steve Walker (55yo)

    Chief Accounting Officer & Assistant Treasurer

    • Tenure: 7.3yrs
    • Compensation: US$822.15k
  • Carlos Macau (52yo)

    Executive VP

    • Tenure: 7.3yrs
    • Compensation: US$4.15m

Board Members

  • Julie Neitzel (59yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$219.93k
  • Laurans Mendelson (81yo)

    Chairman of the Board & CEO

    • Tenure: 29.7yrs
    • Compensation: US$6.75m
  • Eric Mendelson (54yo)

    Co-President & Director

    • Tenure: 27.8yrs
    • Compensation: US$7.79m
  • Victor Mendelson (52yo)

    Co-President & Director

    • Tenure: 23.8yrs
    • Compensation: US$7.79m
  • Adolfo Henriques (65yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$215.13k
  • Alan Schriesheim (88yo)

    Independent Director

    • Tenure: 35.8yrs
    • Compensation: US$272.26k
  • Tom Culligan (67yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$205.57k
  • Frank Schwitter (86yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$213.61k
  • Mark Hildebrandt (63yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$277.57k

Company Information

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


Key Information

  • Name: HEICO Corporation
  • Ticker: HEI
  • Exchange: NYSE
  • Founded: 1949
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$13.966b
  • Shares outstanding: 134.15m
  • 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 Analysis2019/10/17 23:41
End of Day Share Price2019/10/17 00:00
Earnings2019/07/31
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.