| HEI-A Stock | | | USD 211.13 0.77 0.37% |
Considering HEICO's profitability and operating efficiency indicators, HEICO may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in December. Profitability indicators assess HEICO's ability to earn profits and add value for shareholders. At present, HEICO's
Price To Sales Ratio is projected to increase based on the last few years of reporting. The current year's
EV To Sales is expected to grow to 7.66, whereas
Days Sales Outstanding is forecasted to decline to 66.63. At present, HEICO's
Operating Income is projected to increase significantly based on the last few years of reporting. The current year's
Income Before Tax is expected to grow to about 670.5
M, whereas
Accumulated Other Comprehensive Income is projected to grow to (34.4
M).
For HEICO profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HEICO to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well HEICO utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HEICO's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HEICO over time as well as its relative position and ranking within its peers.
Check out
Risk vs Return Analysis.
For information on how to trade HEICO Stock refer to our
How to Trade HEICO Stock guide.
Please note, there is a significant difference between HEICO's value and its price as these two are different measures arrived at by different means. Investors typically determine if HEICO is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HEICO's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
HEICO Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining HEICO's current stock value. Our valuation model uses many indicators to compare HEICO value to that of its competitors to determine the firm's financial worth.
HEICO is rated
# 5 in price to earning category among its peers. It is rated
below average in return on equity category among its peers . The ratio of Price To Earning to Return On Equity for HEICO is about
459.70 . At present, HEICO's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the HEICO's earnings, one of the primary drivers of an investment's value.
HEICO Return On Equity vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
HEICO | P/E | = | Market Value Per ShareEarnings Per Share |
| = | 66.38 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
HEICO | Return On Equity | = | Net IncomeTotal Equity |
| = | 0.14 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
HEICO Return On Equity Comparison
HEICO is currently under evaluation in return on equity category among its peers.
HEICO Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in HEICO, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HEICO will eventually generate negative long term returns. The profitability progress is the general direction of HEICO's change in net profit over the period of time. It can combine
multiple indicators of HEICO, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
HEICO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on HEICO. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of HEICO position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the HEICO's important profitability drivers and their relationship over time.
Use HEICO in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if HEICO position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HEICO will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to HEICO could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HEICO when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back HEICO - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling HEICO to buy it.
The correlation of HEICO is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as HEICO moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HEICO moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for HEICO can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your HEICO position
In addition to having HEICO in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Target Risk ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Target Risk ETFs theme has 32 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Target Risk ETFs Theme or any other
thematic opportunities.
When determining whether HEICO
offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of HEICO's
financial statements, including income statements, balance sheets, and cash flow statements, to assess its
financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Heico Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Heico Stock: To fully project HEICO's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of HEICO at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include HEICO's income statement, its balance sheet, and the statement of cash flows.
Potential HEICO investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although HEICO investors may work on each financial statement separately, they are all related. The changes in HEICO's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on HEICO's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
