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Heico Cp Cl (HEI.A)
:HEI.A
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Heico Cp Cl A
(NYSE:HEI.A)
79Outperform
Heico Cp Cl A (HEI.A) vs. S&P 500 (SPY)
Market Cap
$32.22B
Dividend Yield0.1%
Average Volume (3M)291.62K
Price to Earnings (P/E)51.8
Beta (1Y)0.59
Revenue Growth23.06%
EPS Growth32.43%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength66
IndustryAerospace & Defense
Share Statistics
EPS (TTM)4.04
Shares Outstanding83,922,280
10 Day Avg. Volume261,531
30 Day Avg. Volume291,618
Financial Highlights & Ratios
PEG Ratio1.60
Price to Book (P/B)N/A
Price to Sales (P/S)9.10
Price to Cash Flow (P/CF)44.70
P/FCF Ratio39.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Heico Cp Cl A Business Overview & Revenue Model
Company DescriptionHEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The company's Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial aircraft, as well as for avionics and navigation systems, subcomponents, and other instruments utilized on military aircraft. Its Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and RFI shielding and suppression filters; high-speed interface products; high voltage interconnection devices; high voltage advanced power electronics; power conversion products; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; three-dimensional microelectronic and stacked memory products; harsh environment connectivity products and custom molded cable assemblies; radio frequency and microwave amplifiers, transmitters, and receivers; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems; and nuclear radiation detectors. The company serves customers primarily in the aviation, defense, space, medical, telecommunications, and electronics industries. HEICO Corporation was incorporated in 1957 and is headquartered in Hollywood, Florida.
How the Company Makes MoneyHEICO Corporation generates revenue through two primary segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). The FSG segment focuses on providing aftermarket replacement parts, repair and overhaul services, and distribution for commercial and military aircraft. This includes parts that are FAA-approved and functionally equivalent to OEM parts. The ETG segment designs and manufactures electronic, electro-optical, microwave, and other components utilized in aviation, defense, space, medical, telecommunications, and electronics industries. HEICO's revenue is bolstered by key partnerships with major airlines, defense contractors, and OEMs, as well as through strategically acquired businesses that extend their product offerings and market reach.
Heico Cp Cl A Financial Statement Overview
Summary
Heico Cp Cl A exhibits strong financial health with impressive growth and profitability metrics. The company maintains a solid balance sheet with no debt, enhancing its financial stability. Cash flows are strong, supporting operational and strategic initiatives effectively.Income Statement
Heico Cp Cl A has shown a strong financial performance with consistent revenue growth, evidenced by a Revenue Growth Rate of 3.47% in the TTM (Trailing-Twelve-Months). The Gross Profit Margin stands at 55.43%, indicating efficient cost management. The Net Profit Margin is 14.21%, and both EBIT and EBITDA margins are healthy at 21.81% and 24.02%, respectively, highlighting strong operational profitability.90
Very Positive
Balance Sheet
The company has a strong balance sheet with no debt reported in the TTM, significantly improving its financial stability. The Return on Equity (ROE) is robust at 13.39%, showing effective utilization of equity. The Equity Ratio is 53.66%, indicating a solid equity base relative to total assets.85
Very Positive
Cash Flow
Heico Cp Cl A demonstrates excellent cash flow management with a Free Cash Flow Growth Rate of 14.23%. The Operating Cash Flow to Net Income Ratio is 1.35, and the Free Cash Flow to Net Income Ratio is 1.24, indicating strong cash generation capabilities relative to net income, providing flexibility for future investments or debt servicing.87
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.99B | 3.86B | 2.97B | 2.21B | 1.87B | 1.79B | Gross Profit |
| 1.59B | 1.50B | 1.15B | 862.76M | 727.42M | 682.13M | EBIT |
| 870.87M | 824.46M | 625.34M | 496.84M | 392.90M | 376.65M | EBITDA |
| 958.85M | 824.46M | 756.77M | 592.71M | 486.24M | 465.71M | Net Income Common Stockholders |
| 567.37M | 514.11M | 403.60M | 351.68M | 304.22M | 313.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 165.47M | 162.10M | 171.05M | 139.50M | 108.30M | 406.85M | Total Assets |
| 7.89B | 7.59B | 7.20B | 4.10B | 3.50B | 3.55B | Total Debt |
| 2.35B | 2.25B | 2.50B | 290.27M | 236.50M | 739.83M | Net Debt |
| 2.19B | 2.09B | 2.33B | 150.77M | 128.20M | 332.98M | Total Liabilities |
| 3.66B | 3.90B | 3.64B | 1.12B | 1.20B | 1.54B | Stockholders Equity |
| 4.23B | 3.64B | 3.15B | 2.65B | 2.30B | 2.01B |
| Cash Flow | Free Cash Flow | ||||
| 701.53M | 614.11M | 399.30M | 435.87M | 407.90M | 386.19M | Operating Cash Flow |
| 763.75M | 672.37M | 448.74M | 467.86M | 444.08M | 409.13M | Investing Cash Flow |
| -511.01M | -293.20M | -2.48B | -395.83M | -183.45M | -199.04M | Financing Cash Flow |
| -281.00M | -389.39M | 2.07B | -33.83M | -558.97M | 137.74M |
Heico Cp Cl A Technical Analysis
Positive
209.49
Price Trends
195.76
Positive
196.89
Positive
193.77
Positive
Market Momentum
4.67
Positive
57.32
Neutral
55.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEI.A, the sentiment is Positive. The current price of 209.49 is above the 20-day moving average (MA) of 207.57, above the 50-day MA of 195.76, and above the 200-day MA of 193.77, indicating a bullish trend. The MACD of 4.67 indicates Positive momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 55.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HEI.A.
Heico Cp Cl A Risk Analysis
Heico Cp Cl A disclosed 23 risk factors in its most recent earnings report. Heico Cp Cl A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Heico Cp Cl A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $32.22B | 51.83 | 16.18% | 0.10% | 23.06% | 32.43% | |
75 Outperform | $136.46B | 24.16 | 33.10% | 2.10% | 5.05% | 2.73% | |
74 Outperform | $103.92B | 19.79 | 81.04% | 2.89% | 5.14% | -19.14% | |
68 Neutral | $77.24B | 48.59 | -29.16% | ― | 16.89% | 20.33% | |
65 Neutral | $4.53B | 35.38 | 8.14% | 1.10% | 6.31% | 28.25% | |
62 Neutral | $8.05B | 13.61 | 3.91% | 3.11% | 3.81% | -13.91% | |
35 Underperform | $4.07B | ― | 81.63% | ― | 4.44% | -202.63% |
* Industrials Sector Average
Performance Comparison
HEI.A
Heico Cp Cl A
209.49
57.19
37.55%
HXL
Hexcel
56.31
-14.78
-20.79%
HON
Honeywell International
210.34
12.53
6.33%
LMT
Lockheed Martin
441.49
0.27
0.06%
SPR
Spirit AeroSystems
34.72
-0.72
-2.03%
TDG
Transdigm Group
1,377.20
227.42
19.78%
Heico Cp Cl A Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 13.53% | Next Earnings Date: Jun 3, 2025
Earnings Call Sentiment Positive
HEICO Corporation reported a strong first quarter for fiscal 2025, with record sales and income growth driven by both organic performance and strategic acquisitions. The company has demonstrated impressive financial metrics, including significant net income and cash flow growth. However, ongoing supply chain challenges and potential impacts from external disruptions present areas of caution. Overall, the sentiment is positive, with the highlights outweighing the lowlights.Highlights
Record Financial Performance in Q1 2025
HEICO achieved record consolidated operating income and net sales in Q1 2025, with a 26% increase in operating income and a 15% increase in net sales compared to Q1 2024.
Significant Net Income Growth
Net income increased by 46% to $168 million or $1.20 per diluted share in Q1 2025, up from $114.7 million or $0.82 per diluted share in Q1 2024.
Strong Performance in Flight Support Group
Flight Support Group set all-time quarterly operating income and net sales records, improving 22% and 15% respectively over the same period last year, driven by 13% organic net sales growth.
Impressive Growth in Electronic Technologies Group
Electronic Technologies Group's operating income and net sales improved by 38% and 16% respectively, attributed to strong 11% organic sales growth and increased defense, space, and aerospace product deliveries.
Robust Cash Flow and EBITDA Growth
Cash flow from operating activities increased by 82% to $203 million, and consolidated EBITDA rose 22% to $273.9 million in Q1 2025.
Active Acquisition Strategy
Several key acquisitions were completed in Q1 2025, including a 70% stake in SVM Limited and a 90% interest in Millennium International, enhancing HEICO's capabilities and expected to be accretive to earnings.
Lowlights
Supply Chain Challenges
While improving, supply chain issues have been noted, with some suppliers impacting potential sales growth due to labor constraints.
Potential Impact from SPS Fire
The recent fire at SPS is anticipated to cause industry-wide supply constraints, particularly affecting the OE and aftermarket sectors.
Company Guidance
In the HEICO Corporation's first quarter fiscal 2025 financial results call, the company reported impressive growth across various financial metrics. Consolidated operating income and net sales reached record highs, with operating income improving by 26% and net sales by 15% compared to the previous year. The company's net income soared by 46% to $168 million, or $1.20 per diluted share, up from $114.7 million, or $0.82 per diluted share, in the first quarter of fiscal 2024. A discrete income tax benefit from stock option exercises favorably impacted net income, contributing $26.5 million, or $0.19 per diluted share, compared to $13.3 million, or $0.10 per diluted share, the previous year. Flight Support Group and Electronic Technologies Group both set records for operating income and net sales, with the former seeing a 22% and 15% increase, respectively, and the latter a 38% and 16% rise. Cash flow from operations surged by 82% to $203 million, while consolidated EBITDA increased by 22% to $273.9 million. The company remains optimistic about continued growth and acquisition opportunities, maintaining a disciplined approach to enhancing shareholder value.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.