HEICO EBITDA vs. Net Income
| HEI-A Stock | USD 198.94 2.19 1.09% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 870.3 M | Current Value 913.8 M | Quarterly Volatility 256.6 M |
| 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 Net Income vs. EBITDA 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 ebitda category among its peers. It also is rated below average in net income category among its peers making up about 0.59 of Net Income per EBITDA. The ratio of EBITDA to Net Income for HEICO is roughly 1.70 . At present, HEICO's EBITDA is projected to increase significantly 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 Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
HEICO |
| = | 756.77 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
HEICO |
| = | 444.38 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
HEICO Net Income Comparison
HEICO is currently under evaluation in net income 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.
| 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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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Restaraunts Hotels Motels theme has 61 constituents at this time.
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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.