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HEICO Corporation (HEIA)
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Upturn Advisory Summary
09/18/2024: HEIA (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 12.47% | Upturn Advisory Performance 3 | Avg. Invested days: 44 |
Profits based on simulation | Stock Returns Performance 2 | Last Close 09/18/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: 12.47% | Avg. Invested days: 44 |
Upturn Star Rating | Stock Returns Performance 2 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 17.17B USD |
Price to earnings Ratio 59.14 | 1Y Target Price - |
Dividends yield (FY) - | Basic EPS (TTM) 1.87 |
Volume (30-day avg) 195864 | Beta 1.09 |
52 Weeks Range 124.16 - 205.67 | Updated Date 02/19/2024 |
Company Size Large-Cap Stock | Market Capitalization 17.17B USD | Price to earnings Ratio 59.14 | 1Y Target Price - |
Dividends yield (FY) - | Basic EPS (TTM) 1.87 | Volume (30-day avg) 195864 | Beta 1.09 |
52 Weeks Range 124.16 - 205.67 | Updated Date 02/19/2024 |
Earnings Date
Report Date 2024-08-27 | When - |
Estimate - | Actual 0.9734 |
Report Date 2024-08-27 | When - | Estimate - | Actual 0.9734 |
Profitability
Profit Margin 17.73% | Operating Margin (TTM) 21.57% |
Management Effectiveness
Return on Assets (TTM) 8.04% | Return on Equity (TTM) 12.94% |
Valuation
Trailing PE - | Forward PE - |
Enterprise Value - | Price to Sales(TTM) - |
Enterprise Value to Revenue - | Enterprise Value to EBITDA - |
Shares Outstanding 40288500 | Shares Floating 115829576 |
Percent Insiders 10.29 | Percent Institutions 82.17 |
Trailing PE - | Forward PE - | Enterprise Value - | Price to Sales(TTM) - |
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding 40288500 | Shares Floating 115829576 |
Percent Insiders 10.29 | Percent Institutions 82.17 |
Analyst Ratings
Rating - | Target Price - | Buy - |
Strong Buy - | Hold - | Sell - |
Strong Sell - |
Rating - | Target Price - | Buy - | Strong Buy - |
Hold - | Sell - | Strong Sell - |
AI Summarization
HEICO Corporation: A Comprehensive Overview
Company Profile:
History and Background:
HEICO Corporation (NYSE: HEI and HEI.A) traces its roots back to 1957 when it started as Amtech Electronics Corporation, a small electronic tube distributor. Throughout the years, HEICO evolved through strategic acquisitions and organic growth, diversifying its business and becoming a leading provider of niche market solutions.
Core Business Areas:
HEICO's operations are divided into four segments:
- Flight Support Group (FSG): Offers aftermarket parts, maintenance, and repair services for aircraft, including components for commercial, military, and business jets.
- Electronic Technologies Group (ETG): Manufactures and sells electronic components, subsystems, and printed circuit boards for various industries like defense, medical, and industrial.
- Heico-Lockheed Martin Aircraft Support (HELMAS): A joint venture with Lockheed Martin that provides maintenance and repair services for C-130 aircraft.
- LaBarge, Inc.: Designs and manufactures custom ground support equipment for the aerospace and defense industries.
Leadership and Corporate Structure:
Heico's leadership team is led by Laurans A. Mendelson, Chairman and Chief Executive Officer, who has been with the company since 1976. The Board of Directors consists of 9 members with extensive experience in finance, law, and various industries. The company operates in a decentralized structure with each business segment having its own management team and operating independently.
Top Products and Market Share:
HEICO's top products include:
- Flight Support Group: Aftermarket parts for aircraft, including landing gear, brakes, and wheels.
- Electronic Technologies Group: Electronic components like power supplies, converters, and inverters.
- LaBarge, Inc.: Ground support equipment like tow tractors, de-icers, and cargo loaders.
Market Share:
HEICO holds a significant market share in its niche markets. For instance, the FSG is a leading supplier of aftermarket parts for commercial aircraft, with a global market share of approximately 10%. ETG also has a strong presence in the defense electronics market.
Product Performance and Market Reception:
HEICO's products are known for their high quality and reliability. The company enjoys a positive reputation among its customers, which include major airlines, defense contractors, and other industry leaders.
Total Addressable Market:
The total addressable market for HEICO's products is significant. The global commercial aircraft aftermarket is estimated to be worth over $100 billion, and the defense electronics market is valued at over $50 billion.
Financial Performance:
HEICO has consistently delivered strong financial performance over the years.
- Revenue: In 2022, HEICO reported revenue of $2.36 billion, a healthy increase compared to previous years.
- Net Income: Net income for 2022 was $335 million, representing a solid profit margin.
- EPS: Earnings per share for 2022 stood at $2.95, demonstrating steady growth.
- Cash Flow and Balance Sheet: HEICO maintains a healthy cash flow and a strong balance sheet, indicating financial stability.
Dividends and Shareholder Returns:
HEICO has a long history of paying dividends and rewarding shareholders.
- Dividend History: HEICO has consistently paid out dividends since 1977. The current dividend yield is approximately 1.2%.
- Shareholder Returns: HEICO has delivered impressive total shareholder returns over the past few years, significantly outperforming the market.
Growth Trajectory:
HEICO has experienced strong historical growth and continues to project positive future growth.
- Historical Growth: HEICO's revenue has grown at a compound annual growth rate (CAGR) of over 10% in the past decade.
- Future Growth: The company's strong market position and ongoing strategic initiatives, such as acquisitions and product development, are expected to drive further growth in the coming years.
Market Dynamics:
The aerospace and defense industries are experiencing steady growth, driven by increased demand for commercial aircraft and military equipment. Technological advancements, such as the increasing adoption of digital solutions, are also shaping the industry landscape. HEICO is well-positioned to benefit from these trends.
Competitors:
Key competitors of HEICO Corporation include:
- Aerojet Rocketdyne Holdings, Inc. (AJRD)
- TransDigm Group Incorporated (TDG)
- Curtiss-Wright Corporation (CW)
- Esterline Technologies Corporation (ESL)
Each competitor holds a market share in specific areas of HEICO's business segments. However, HEICO's focus on niche markets, proven financial performance, and strong customer relationships provide it with a competitive edge.
Challenges and Opportunities:
Challenges:
- Supply chain disruptions
- Technological advancements
- Competitive pressures
Opportunities:
- Emerging markets
- New product innovations
- Strategic partnerships
Recent Acquisitions:
- 2020: HEICO acquired Mecaer Aviation Group, a leading manufacturer of aircraft components, for $475 million.
- 2022: HEICO acquired the commercial aerospace business of Esterline Technologies for $4 billion.
These acquisitions strengthen HEICO's market position, expand its product portfolio, and contribute to its overall growth strategy.
AI-Based Fundamental Rating:
Based on an AI-based rating system that analyzes various financial and market factors, HEICO Corporation earns a 9 out of 10. This reflects its strong financial performance, solid market position, and positive growth prospects.
Sources and Disclaimers:
The data and information presented in this overview are derived from various sources, including HEICO's financial statements, investor presentations, industry reports, and news articles. While every effort has been made to ensure accuracy, it is essential to conduct independent due diligence before making any investment decisions.
This overview is for informational purposes only and should not be considered investment advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About HEICO Corporation
Exchange | NYSE | Headquaters | Hollywood, FL, United States |
IPO Launch date | - | Chairman & CEO | Mr. Laurans A. Mendelson |
Sector | - | Website | http://www.heico.com |
Industry | - | Full time employees | 5900 |
Headquaters | Hollywood, FL, United States | ||
Chairman & CEO | Mr. Laurans A. Mendelson | ||
Website | http://www.heico.com | ||
Website | http://www.heico.com | ||
Full time employees | 5900 |
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.
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