Those who invested in HEICO (NYSE:HEI) five years ago are up 189%

  • In Business
  • 2022-06-27 14:38:37Z
  • By Simply Wall St.

HEICO Corporation (NYSE:HEI) shareholders might be concerned after seeing the share price drop 13% in the last quarter. But in stark contrast, the returns over the last half decade have impressed. It's fair to say most would be happy with 187% the gain in that time. So while it's never fun to see a share price fall, it's important to look at a longer time horizon. The more important question is whether the stock is too cheap or too expensive today.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

Check out our latest analysis for HEICO

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, HEICO achieved compound earnings per share (EPS) growth of 13% per year. This EPS growth is slower than the share price growth of 23% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 53.59.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on HEICO's earnings, revenue and cash flow.

A Different Perspective

While it's never nice to take a loss, HEICO shareholders can take comfort that , including dividends,their trailing twelve month loss of 7.4% wasn't as bad as the market loss of around 17%. Of course, the long term returns are far more important and the good news is that over five years, the stock has returned 24% for each year. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at)

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.


More Related News

Why Adairs Limited (ASX:ADH) Could Be Worth Watching
Why Adairs Limited (ASX:ADH) Could Be Worth Watching

While Adairs Limited ( ASX:ADH ) might not be the most widely known stock at the moment, it saw significant share price...

Optimism around Nanosonics (ASX:NAN) delivering new earnings growth may be shrinking as stock declines 7.1% this past week
Optimism around Nanosonics (ASX:NAN) delivering new earnings growth may be shrinking as stock declines 7.1% this past week

Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. Active...

Market Still Lacking Some Conviction On Australia United Mining Limited (ASX:AYM)
Market Still Lacking Some Conviction On Australia United Mining Limited (ASX:AYM)

It's not a stretch to say that Australia United Mining Limited's ( ASX:AYM ) price-to-earnings (or "P/E") ratio of...

Independent Non-Executive Director Samir Hallab Just Bought 21% More Shares In Fiducian Group Ltd (ASX:FID)
Independent Non-Executive Director Samir Hallab Just Bought 21% More Shares In Fiducian Group Ltd (ASX:FID)

Whilst it may not be a huge deal, we thought it was good to see that the Fiducian Group Ltd ( ASX:FID ) Independent...

O'Reilly Automotive's (NASDAQ:ORLY) investors will be pleased with their solid 220% return over the last five years

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


  • devis assurance auto
    (2022-06-28 08:41:32Z)


  • facebook解封
    (2022-06-28 20:25:41Z)


  • 문자발송
    (2022-07-16 03:15:12Z)

    I read an interesting article well. It was an article that stimulated my desire to learn. I will visit often and read various articles well. Thank you.문자발송

  • dark web links
    (2022-07-22 10:54:42Z)

    What are the benefits associated with this kind of link building service? For one thing, you will come to appreciate just how useful they can be.

  • deep web
    (2022-07-22 11:18:03Z)

    You will also find links directories. These are organizations which contain all sorts of links.

  • dark web sites
    (2022-07-22 11:42:05Z)

    Some of the 'ists' and 'interspellings' include but are not limited to; offsite linking and onsite link building.

  • dark web
    (2022-07-22 12:01:13Z)

    They are also well established and reputable. By submitting to these well-known web sites you are only helping to increase your own credibility and your own site's rating on search engines.

  • dark web links
    (2022-07-22 12:21:35Z)

    This means visitors will be able to see the site more often and when they do, they will most likely come back. The fact that people keep returning to the site can eventually lead to the site being ranked highly in the search engines. It is believed that over eighty percent of all searches include a link to a particular site.

  • work from home jobs
    (2022-07-22 12:42:14Z)

    This is because it takes knowledge to succeed. You need to know what to sell and where to promote it. You also need to learn about the various ways to get your products out there. The last thing you want to happen is to promote a product that nobody wants to buy.

  • affiliate marketing success
    (2022-07-22 13:09:42Z)

    After you have found a market that is not being exploited, you can start to promote that market to your list using your affiliate link. When your list grows, you will start to see money come in and when you stop promoting that market, the money will come right back out to you.


Top News: Business