HEICO Return On Equity vs. Current Valuation
| HEI-A Stock | USD 211.13 0.77 0.37% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.12 | Current Value 0.096 | Quarterly Volatility 0.03338069 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.42 | 0.45 |
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| Net Profit Margin | 0.08 | 0.12 |
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| Operating Profit Margin | 0.14 | 0.19 |
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| Pretax Profit Margin | 0.13 | 0.17 |
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| Return On Assets | 0.0571 | 0.0505 |
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| Return On Equity | 0.096 | 0.12 |
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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.
HEICO |
HEICO Current Valuation vs. Return On Equity 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 below average in return on equity category among its peers. It is rated # 4 in current valuation category among its peers reporting about 240,524,053,622 of Current Valuation per Return On Equity. 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 Current Valuation vs. Return On Equity
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 |
| = | 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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
HEICO |
| = | 34.73 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
HEICO Current Valuation vs Competition
HEICO is rated # 4 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 369.19 Billion. HEICO holds roughly 34.73 Billion in current valuation claiming about 9% of equities under Industrials industry.
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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -36.2 M | -34.4 M | |
| Operating Income | 719.1 M | 755.1 M | |
| Income Before Tax | 638.6 M | 670.5 M | |
| Total Other Income Expense Net | -63.1 M | -59.9 M | |
| Net Income | 511 M | 536.6 M | |
| Income Tax Expense | 127.5 M | 133.9 M | |
| Net Income From Continuing Ops | 511 M | 294.7 M | |
| Non Operating Income Net Other | 649.8 K | 843.9 K | |
| Net Income Applicable To Common Shares | 464.1 M | 266 M | |
| Net Interest Income | -65.7 M | -62.4 M | |
| Change To Netincome | 21.8 M | 22.9 M | |
| Net Income Per Share | 2.65 | 2.78 | |
| Income Quality | 0.91 | 1.02 | |
| Net Income Per E B T | 0.65 | 0.51 |
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.HEICO Pair Trading
HEICO Pair Trading Analysis
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.Did You Try This Idea?
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Check out Risk vs Return Analysis. For information on how to trade HEICO Stock refer to our How to Trade HEICO Stock guide.You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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.