Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

HEICO

NYSE:HEI
Snowflake Description

Outstanding track record with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HEI
NYSE
$10B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The last earnings update was 42 days ago. More info.


Add to Portfolio Compare Print
  • HEICO has significant price volatility in the past 3 months.
HEI Share Price and Events
7 Day Returns
19.8%
NYSE:HEI
-5.7%
US Aerospace & Defense
2.4%
US Market
1 Year Returns
-15.1%
NYSE:HEI
-16.9%
US Aerospace & Defense
-10%
US Market
HEI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HEICO (HEI) 19.8% -14.7% -29.5% -15.1% 96.4% 172.5%
US Aerospace & Defense -5.7% -22.7% -32.4% -16.9% -4.5% 17.8%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • HEI outperformed the Aerospace & Defense industry which returned -16.9% over the past year.
  • HEI underperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
HEI
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HEICO to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HEICO.

NYSE:HEI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HEI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.849 (1 + (1- 21%) (6.05%))
0.926
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.926 * 5.44%)
6.78%

Discounted Cash Flow Calculation for NYSE:HEI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HEICO is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:HEI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.78%)
2020 364.62 Analyst x7 341.48
2021 432.13 Analyst x7 379.01
2022 473.00 Analyst x3 388.53
2023 411.00 Analyst x1 316.17
2024 428.00 Analyst x1 308.35
2025 425.12 Est @ -0.67% 286.84
2026 425.34 Est @ 0.05% 268.77
2027 427.72 Est @ 0.56% 253.11
2028 431.62 Est @ 0.91% 239.21
2029 436.63 Est @ 1.16% 226.63
Present value of next 10 years cash flows $3,008.00
NYSE:HEI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $436.63 × (1 + 1.74%) ÷ (6.78% – 1.74%)
$8,818.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,818.18 ÷ (1 + 6.78%)10
$4,576.93
NYSE:HEI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,008.00 + $4,576.93
$7,584.93
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,584.93 / 134.66
$56.33
NYSE:HEI Discount to Share Price
Calculation Result
Value per share (USD) From above. $56.33
Current discount Discount to share price of $84.69
= -1 x ($84.69 - $56.33) / $56.33
-50.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of HEICO is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HEICO's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HEICO's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HEI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2020-01-31) in USD $2.76
NYSE:HEI Share Price ** NYSE (2020-04-08) in USD $84.69
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 39 Publicly-Listed Aerospace & Defense Companies 13.44x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HEICO.

NYSE:HEI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HEI Share Price ÷ EPS (both in USD)

= 84.69 ÷ 2.76

30.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEICO is overvalued based on earnings compared to the US Aerospace & Defense industry average.
  • HEICO is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does HEICO's expected growth come at a high price?
Raw Data
NYSE:HEI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
8.5%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 31 Publicly-Listed Aerospace & Defense Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

NYSE:HEI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 30.64x ÷ 8.5%

3.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEICO is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HEICO's assets?
Raw Data
NYSE:HEI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2020-01-31) in USD $13.21
NYSE:HEI Share Price * NYSE (2020-04-08) in USD $84.69
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 53 Publicly-Listed Aerospace & Defense Companies 1.71x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NYSE:HEI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HEI Share Price ÷ Book Value per Share (both in USD)

= 84.69 ÷ 13.21

6.41x

* Primary Listing of HEICO.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEICO is overvalued based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess HEICO's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. HEICO has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is HEICO expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HEICO expected to grow at an attractive rate?
  • HEICO's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • HEICO's earnings growth is positive but not above the United States of America market average.
  • HEICO's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HEI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HEI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 8.5%
NYSE:HEI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 4.2%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HEI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HEI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-10-31 2,258 1
2023-10-31 2,171 1
2022-10-31 2,256 493 403 4
2021-10-31 2,091 499 332 9
2020-10-31 1,953 474 303 10
2020-04-09
NYSE:HEI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2020-01-31 2,096 469 370
2019-10-31 2,056 437 328
2019-07-31 1,991 427 310
2019-04-30 1,925 403 296
2019-01-31 1,839 326 273
2018-10-31 1,778 328 259
2018-07-31 1,722 324 246
2018-04-30 1,648 294 224
2018-01-31 1,586 284 210
2017-10-31 1,525 288 186
2017-07-31 1,467 256 177
2017-04-30 1,431 244 173

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HEICO's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
  • HEICO's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HEI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from HEICO Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HEI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-10-31
2023-10-31
2022-10-31
2021-10-31 2.31 2.82 1.95 5.00
2020-10-31 2.10 2.80 1.25 6.00
2020-04-09
NYSE:HEI Past Financials Data
Date (Data in USD Millions) EPS *
2020-01-31 2.76
2019-10-31 2.45
2019-07-31 2.32
2019-04-30 2.22
2019-01-31 2.06
2018-10-31 1.96
2018-07-31 1.86
2018-04-30 1.70
2018-01-31 1.59
2017-10-31 1.41
2017-07-31 1.34
2017-04-30 1.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HEICO is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HEICO's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HEICO has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HEICO performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HEICO's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HEICO has delivered over 20% year on year earnings growth in the past 5 years.
  • HEICO's 1-year earnings growth exceeds its 5-year average (35.5% vs 22.7%)
  • HEICO's earnings growth has exceeded the US Aerospace & Defense industry average in the past year (35.5% vs 3%).
Earnings and Revenue History
HEICO's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HEICO Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HEI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2020-01-31 2,095.78 370.45 355.13
2019-10-31 2,055.65 327.90 350.91
2019-07-31 1,991.00 309.59 344.51
2019-04-30 1,924.50 295.58 332.29
2019-01-31 1,839.46 273.41 319.84
2018-10-31 1,777.72 259.23 315.84
2018-07-31 1,722.06 245.53 306.21
2018-04-30 1,647.74 224.14 298.34
2018-01-31 1,585.79 210.21 285.06
2017-10-31 1,524.81 185.99 266.97
2017-07-31 1,466.89 176.57 255.44
2017-04-30 1,431.47 172.88 243.83
2017-01-31 1,413.46 165.85 248.69
2016-10-31 1,376.26 156.19 243.98
2016-07-31 1,341.63 150.18 242.36
2016-04-30 1,285.92 142.55 230.84
2016-01-31 1,226.69 137.00 212.49
2015-10-31 1,188.65 133.36 204.23
2015-07-31 1,152.20 127.22 200.62
2015-04-30 1,142.86 126.22 205.27
2015-01-31 1,133.67 121.48 208.54
2014-10-31 1,132.31 121.29 209.95
2014-07-31 1,127.51 118.98 207.51
2014-04-30 1,103.62 114.56 202.40
2014-01-31 1,059.09 109.89 195.20
2013-10-31 1,008.76 102.40 189.23
2013-07-31 963.74 96.41 181.87
2013-04-30 922.58 90.59 174.54

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HEICO has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • HEICO used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • HEICO has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HEICO's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HEICO has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HEICO's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HEICO's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HEICO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HEICO's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of HEICO's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HEICO Company Filings, last reported 2 months ago.

NYSE:HEI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2020-01-31 2,005.14 567.86 63.97
2019-10-31 1,882.92 553.32 57.00
2019-07-31 1,820.73 639.30 59.02
2019-04-30 1,813.61 555.53 64.09
2019-01-31 1,740.75 607.66 57.86
2018-10-31 1,635.05 531.61 59.60
2018-07-31 1,563.92 622.89 66.98
2018-04-30 1,503.54 683.36 48.23
2018-01-31 1,462.37 668.53 65.69
2017-10-31 1,379.42 673.53 52.07
2017-07-31 1,323.55 434.31 49.49
2017-04-30 1,263.66 460.47 36.73
2017-01-31 1,187.49 414.34 45.91
2016-10-31 1,147.22 457.81 42.96
2016-07-31 1,100.18 507.74 27.19
2016-04-30 1,066.82 560.62 36.79
2016-01-31 1,013.35 592.65 29.89
2015-10-31 984.55 365.20 33.60
2015-07-31 921.40 297.05 31.70
2015-04-30 892.32 324.29 20.68
2015-01-31 848.35 352.22 18.37
2014-10-31 814.59 326.00 20.23
2014-07-31 783.40 386.33 20.94
2014-04-30 755.05 436.59 21.40
2014-01-31 785.74 379.29 15.24
2013-10-31 782.45 377.52 15.50
2013-07-31 743.30 319.54 12.77
2013-04-30 709.90 228.55 16.88
  • HEICO's level of debt (28.3%) 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 (41.5% vs 28.3% today).
  • Debt is well covered by operating cash flow (82.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23.2x coverage).
X
Financial health checks
We assess HEICO's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HEICO has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.19%
Current annual income from HEICO dividends. Estimated to be 0.18% next year.
If you bought $2,000 of HEICO shares you are expected to receive $4 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HEICO's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.93%).
  • HEICO's dividend is below the markets top 25% of dividend payers in United States of America (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HEI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HEI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-10-31
2023-10-31
2022-10-31 0.14 3.00
2021-10-31 0.14 5.00
2020-10-31 0.16 5.00
2020-04-09
NYSE:HEI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-27 0.160 0.195
2020-02-25 0.160 0.149
2019-12-19 0.160 0.131
2019-12-16 0.160 0.134
2019-06-12 0.140 0.107
2019-05-30 0.140 0.112
2019-05-28 0.140 0.123
2018-12-17 0.140 0.155
2018-06-12 0.120 0.147
2018-05-31 0.112 0.148
2018-05-29 0.112 0.151
2017-12-15 0.112 0.167
2017-06-13 0.102 0.190
2017-05-25 0.092 0.195
2017-05-23 0.092 0.196
2016-12-13 0.092 0.217
2016-06-06 0.082 0.230
2016-05-27 0.082 0.240
2016-05-25 0.082 0.242
2015-12-14 0.082 0.280
2015-06-09 0.072 0.266
2015-05-21 0.251 0.838
2015-05-19 0.251 0.817
2014-12-15 0.251 0.825
2014-06-10 0.241 0.921
2014-05-22 0.241 0.876
2014-05-20 0.241 0.890
2014-02-27 0.241 0.803
2014-02-25 0.241 0.771
2013-12-19 0.241 0.833
2013-12-17 0.241 0.799
2013-06-11 0.057 0.227
2013-05-24 0.049 0.234
2013-05-22 0.049 0.249
2012-11-27 0.049 0.272
2012-06-19 0.049 0.318
2012-05-31 0.039 0.242
2012-05-22 0.039 0.233
2011-12-13 0.039 0.223
2011-06-14 0.039 0.226
2011-05-31 0.032 0.184
2011-05-24 0.032 0.180
2010-12-14 0.032 0.211
2010-06-15 0.032 0.279
2010-06-03 0.025 0.260
2010-05-25 0.025 0.245
2009-12-14 0.025 0.252
2009-06-16 0.025 0.310
2009-06-03 0.025 0.315
2009-05-27 0.025 0.340

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEICO is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • HEICO is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of HEICO's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of HEICO's dividends as it is not paying a notable one for United States of America.
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 United States of America.
X
Income/ dividend checks
We assess HEICO's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HEICO afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HEICO has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Laurans Mendelson
COMPENSATION $10,204,504
AGE 81
TENURE AS CEO 30.2 years
CEO Bio

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. He served as the President of HEICO Corporation from September 1991 to September 2009. He served as the President of MediTek Health Corporation from May 1994 to July 1996. Mr. Mendelson served as the President of Heico Electronic Technologies Corp. He serves as the Chairman of Mount Sinai NYU Health. He has been the Chairman and Director of HEICO Corporation since December 1990 and 1989 respectively. He is a Member of the Board of Trustees, the Executive Committee and Founders Club of Mount Sinai Medical Center in Miami Beach, Florida and also served as Chairman of Board of Trustee. Mr. Mendelson serves as a Trustee Emeritus of Columbia University. In addition, he served as a Trustee of Columbia University in The City of New York from 1995 to 2001.He currently serves as Trustee Emiritus of Columbia University in The City of New York. He served as a Director of Hawker Pacific Aerospace, which provides overhaul and repair services to the aviation industry, since January 2001. He serves as a Member of Board of Governors at Aerospace Industries Association. He served as Chairman of HEICO Aerospace Holdings Corp. Mr. Mendelson is a Certified Public Accountant.

CEO Compensation
  • Laurans's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Laurans's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HEICO management team in years:

10.5
Average Tenure
55
Average Age
  • The average tenure for the HEICO management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Laurans Mendelson

TITLE
Chairman of the Board & CEO
COMPENSATION
$10M
AGE
81
TENURE
30.2 yrs

Eric Mendelson

TITLE
Co-President & Director
COMPENSATION
$4M
AGE
54
TENURE
10.5 yrs

Victor Mendelson

TITLE
Co-President & Director
COMPENSATION
$4M
AGE
52
TENURE
10.5 yrs

Carlos Macau

TITLE
Executive VP
COMPENSATION
$3M
AGE
52
TENURE
7.8 yrs

Steve Walker

TITLE
Chief Accounting Officer & Assistant Treasurer
COMPENSATION
$683K
AGE
55
TENURE
7.8 yrs

Joseph Pallot

TITLE
General Counsel
COMPENSATION
$78K
AGE
59
TENURE
11.6 yrs

Thomas Irwin

TITLE
Senior Executive Vice President
COMPENSATION
$187K
AGE
73
TENURE
28.6 yrs

Elizabeth Letendre

TITLE
Corporate Secretary
Board of Directors Tenure

Average tenure and age of the HEICO board of directors in years:

13.3
Average Tenure
65
Average Age
  • The average tenure for the HEICO board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Eric Mendelson

TITLE
Co-President & Director
COMPENSATION
$4M
AGE
54
TENURE
28.3 yrs

Victor Mendelson

TITLE
Co-President & Director
COMPENSATION
$4M
AGE
52
TENURE
24.3 yrs

Frank Schwitter

TITLE
Independent Director
COMPENSATION
$221K
AGE
86
TENURE
13.3 yrs

Laurans Mendelson

TITLE
Chairman of the Board & CEO
COMPENSATION
$10M
AGE
81
TENURE
29.3 yrs

Mark Hildebrandt

TITLE
Independent Director
COMPENSATION
$284K
AGE
63
TENURE
11.6 yrs

Alan Schriesheim

TITLE
Independent Director
COMPENSATION
$276K
AGE
88
TENURE
36.3 yrs

Adolfo Henriques

TITLE
Independent Director
COMPENSATION
$224K
AGE
65
TENURE
9.1 yrs

Julie Neitzel

TITLE
Independent Director
COMPENSATION
$226K
AGE
59
TENURE
5.6 yrs

Tom Culligan

TITLE
Independent Director
COMPENSATION
$231K
AGE
67
TENURE
5.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. Oct 19 Buy Laurans Mendelson Individual 29. Oct 19 29. Oct 19 949 $120.70 $114,546
30. Oct 19 Buy Eric Mendelson Individual 29. Oct 19 29. Oct 19 949 $120.70 $114,546
30. Oct 19 Buy Victor Mendelson Individual 29. Oct 19 29. Oct 19 949 $120.70 $114,546
30. Oct 19 Buy Adolfo Henriques Individual 29. Oct 19 29. Oct 19 950 $120.70 $114,666
30. Oct 19 Buy Thomas Culligan Individual 29. Oct 19 29. Oct 19 949 $120.70 $114,546
30. Oct 19 Buy Mark Hildebrandt Individual 29. Oct 19 29. Oct 19 949 $120.70 $114,546
30. Oct 19 Buy Alan Schriesheim Individual 29. Oct 19 29. Oct 19 955 $120.70 $115,270
30. Oct 19 Buy Julie Neitzel Individual 29. Oct 19 29. Oct 19 950 $120.70 $114,666
X
Management checks
We assess HEICO's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HEICO has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Can HEICO Corporation (NYSE:HEI) Maintain Its Strong Returns?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for HEICO: 19% = US$310m ÷ US$1.8b (Based on the trailing twelve months to July 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

HEICO Corporation (NYSE:HEI) Earns A Nice Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for HEICO: 0.16 = US$427m ÷ (US$2.9b - US$251m) (Based on the trailing twelve months to April 2019.) So, HEICO has an ROCE of 16%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … In addition to low current liabilities (making a negligible impact on ROCE), HEICO earns a sound return on capital employed.

Simply Wall St -

Consider These Factors, Then Buy HEICO Corporation (NYSE:HEI)

High quality stocks such as HEICO Corporation has fared well over time in a fickle stock market, which is why I want to bring it into light amongst all the chaos. … Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record. … Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations.

Simply Wall St -

Do Insiders Own Shares In HEICO Corporation (NYSE:HEI)?

The big shareholder groups in HEICO Corporation (NYSE:HEI) have power over the company. … View our latest analysis for HEICO NYSE:HEI Ownership Summary, August 2nd 2019 What Does The Institutional Ownership Tell Us About HEICO? … Insider Ownership Of HEICO The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Was HEICO Corporation's (NYSE:HEI) Earnings Growth Better Than The Industry's?

When HEICO Corporation (NYSE:HEI) released its most recent earnings update (30 April 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Check out our latest analysis for HEICO Did HEI beat its long-term earnings growth trend and its industry? … I suggest you continue to research HEICO to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for HEI’s future growth?

Simply Wall St -

Does HEICO (NYSE:HEI) Have A Healthy Balance Sheet?

We note that HEICO Corporation (NYSE:HEI) does have debt on its balance sheet. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Despite Its High P/E Ratio, Is HEICO Corporation (NYSE:HEI) Still Undervalued?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for HEICO: P/E of 58.63 = $130.31 ÷ $2.22 (Based on the year to April 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios P/E ratios primarily reflect market expectations around earnings growth rates.

Simply Wall St -

The HEICO (NYSE:HEI) Share Price Has Soared 379%, Delighting Many Shareholders

For example, the HEICO Corporation (NYSE:HEI) share price is up a whopping 379% in the last half decade, a handsome return for long term holders. … Over half a decade, HEICO managed to grow its earnings per share at 20% a year. … It is important to consider the total shareholder return, as well as the share price return, for any given stock.

Simply Wall St -

How Much Are HEICO Corporation (NYSE:HEI) Insiders Spending On Buying Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in HEICO Corporation (NYSE:HEI). … See our latest analysis for HEICO HEICO Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Senior Executive Vice President, Thomas Irwin, for US$389k worth of shares, at about US$77.76 per share. … It would be great to see more insider buying, but overall it seems like HEICO insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future.

Simply Wall St -

A Look At HEICO Corporation's (NYSE:HEI) Exceptional Fundamentals

Not only did HEI outperformed its past performance, its growth also exceeded the Aerospace & Defense industry expansion, which generated a 31% earnings growth. … Take a look at our free research report of analyst consensus for HEI’s outlook. … The intrinsic value infographic in our free research report helps visualize whether HEI is currently mispriced by the market.

Simply Wall St -

Company Info

Description

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.

Details
Name: HEICO Corporation
HEI
Exchange: NYSE
Founded: 1957
$10,438,999,536
134,659,582
Website: http://www.heico.com
Address: HEICO Corporation
3000 Taft Street,
Hollywood,
Florida, 33021,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HEI Common Stock New York Stock Exchange US USD 02. Jan 1968
DB HC1 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0J46 Common Stock London Stock Exchange GB USD 02. Jan 1968
NYSE HEI.A Class A Common Stock New York Stock Exchange US USD 09. Apr 1998
DB HC1A Class A Common Stock Deutsche Boerse AG DE EUR 09. Apr 1998
Number of employees
Current staff
Staff numbers
5,900
HEICO employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 02:42
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/02/27
Last earnings reported: 2020/01/31
Last annual earnings reported: 2019/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.