HEICO Corporation
HEICO Corporation Fundamental Analysis
HEICO Corporation (HEI) shows moderate financial fundamentals with a PE ratio of 69.91, profit margin of 15.39%, and ROE of 17.09%. The company generates $4.5B in annual revenue with strong year-over-year growth of 16.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HEI's fundamental strength across five key dimensions:
Efficiency Score
WeakHEI struggles to generate sufficient returns from assets.
Valuation Score
WeakHEI trades at a premium to fair value.
Growth Score
ExcellentHEI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHEI maintains a strong and stable balance sheet.
Profitability Score
ExcellentHEI achieves industry-leading margins.
Key Financial Metrics
Is HEI Expensive or Cheap?
P/E Ratio
HEI trades at 69.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HEI's PEG of 9.50 indicates potential overvaluation.
Price to Book
The market values HEICO Corporation at 11.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 37.91 times EBITDA. This signals the market has high growth expectations.
How Well Does HEI Make Money?
Net Profit Margin
For every $100 in sales, HEICO Corporation keeps $15.39 as profit after all expenses.
Operating Margin
Core operations generate 22.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.09 in profit for every $100 of shareholder equity.
ROA
HEICO Corporation generates $8.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HEICO Corporation produces operating cash flow of $933.16M, showing steady but balanced cash generation.
Free Cash Flow
HEICO Corporation generates strong free cash flow of $860.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.19 in free cash annually.
FCF Yield
HEI converts 1.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
69.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How HEI Stacks Against Its Sector Peers
| Metric | HEI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 69.91 | 26.49 | Worse (Expensive) |
| ROE | 17.09% | 1307.00% | Weak |
| Net Margin | 15.39% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.51 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 2.83 | 10.48 | Strong Liquidity |
| ROA | 8.12% | -1549793.00% (disorted) | Weak |
HEI outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HEICO Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
143.23%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
113.09%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
121.31%
Industry Style: Cyclical, Value, Infrastructure
High Growth