Heico Corp
HEI
Aircraft Engines & Engine Parts
Mkt Cap
$23.37BPE
58.80Debt
$1.215BCash
$694.3MEV
$23.89BFCF
$402.5MP/E Ratio
58.80Debt
$1.215BCash
$694.3MEV
$23.89BFCF
$402.5MHEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services. 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 frequency (RF) interference shielding and suppression filters; power conversion and interface products; interconnection devices; power electronics; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; harsh environment connectivity products and custom molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; silicone products; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; embedded computing solutions; test sockets and adapters; and radiation assurance services. The company was founded in 1957 and is headquartered in Hollywood, Florida.
Sector
DCF
Discounted Cash Flow Valuation of Heico Corp
Value
Growth
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%
Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $402.5M | $457.4M | $515.4M | $575.8M | $637.8M | $700.3M | $762.2M | $822.3M | $879.2M | $931.6M | $978.2M | $9.782B |
| DCF | $397.7M | $389.7M | $378.6M | $364.7M | $348.2M | $329.5M | $309.1M | $287.4M | $264.8M | $241.8M | $2.418B | |
| Value | $5.73B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 15%
Earnings Stability 86%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 10-2014 | 10-2015 | 10-2016 | 10-2017 | 10-2018 | 10-2019 | 10-2020 | 10-2021 | 10-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 11% | 11% | 11% | 12% | 15% | 16% | 18% | 16% | 16% | 15% |
| ROA | 14% | 13% | 13% | 12% | 14% | 15% | 11% | 11% | 12% | 11% |
| ROE | 16% | 15% | 15% | 15% | 17% | 19% | 16% | 13% | 13% | 13% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +15.42%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.73%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +12.65%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.41%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +15.61%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.68%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 10-2014 | 10-2015 | 10-2016 | 10-2017 | 10-2018 | 10-2019 | 10-2020 | 10-2021 | 10-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 2.38 | 2.10 | 2.71 | 1.86 | 1.38 | 1.92 | 0.58 | 0.67 | 3.02 |
| Debt Equity | 0.42 | 0.41 | 0.44 | 0.54 | 0.35 | 0.33 | 0.37 | 0.10 | 0.11 | 0.41 |
| MIN | ||||||||||
| Graham Stability | - | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 3.02.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.39.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 10-2015 | 10-2017 | 10-2019 | 10-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 9.3% | 7.7% | 2.4% | 18% | -0.43% |
| Net Income | 15% | 14% | 2.4% | 16% | -1.7% |
| Stockholders Equity | 17% | 16% | 16% | 15% | -0.29% |
| FCF | 16% | 12% | 2.2% | 6.9% | -0.98% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +7.69%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.43%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +13.59%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -1.72%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +16.23%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -0.29%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +11.86%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -0.98%.