HEICO Corporation designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The company was founded in 1949 and is based in Hollywood, Florida.
HEI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HEI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Heico Corp ranked in the 28th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Heico Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 24.34; that's higher than 90.5% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than merely 14.45% of the free cash flow producing stocks we're observing.
HEI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 44.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HEI, try IEX, VRSK, VSEC, ADP, and EMR.
Overview You would be hard-pressed to find a better-performing company over the last thirty years than HEICO (Heico) (HEI). The aircraft parts maker has been a true beneficiary of the growth of commercial air travel over this time period. Source: Heico May 2020 Investor Presentation It is a true rarity...
Permanent Value on Seeking Alpha | September 2, 2020
HEICO ([[HEI]] -6.2%) reported FQ3 net sales decline of 27.4% Y/Y to $386.41M; Segment sales: Flight Support $178.16M (-44.3% Y/Y); and Electronic Technologies $210.92M (-2.4% Y/Y).Company’s commercial aerospace businesses were materially impacted in 3Q20 by the significant decline in global commercial air travel that began in March 2020.Q3 Operating margin declined by...
HEICO Corporation (NYSE: HEI.A) (NYSE: HEI) congratulated NASA and JPL on the successful launch of the Mars 2020/Perseverance mission this morning from Cape Canaveral Air Force Station, Florida aboard a ULA Atlas 541 rocket.
On July 5, 2020, NZS Capital released its Q2 2020 Investor Letter, a copy of which you can download here. The NZS Global Growth strategy returned 39.95% for the second quarter of 2020. Meanwhile, the benchmark Morningstar Global Markets GR index gained 19.79%. You should check out NZS Capital's top 5 stock picks for investors […]