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Heico Cp Cl A (HEI.A)
NYSE:HEI.A
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Heico Cp Cl A
(NYSE:HEI.A)
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Rating:74Outperform
Price Target:
$278.00
▲(8.87% Upside)
Heico Cp Cl A's overall stock score is driven by its strong financial performance and outstanding earnings call results, highlighting robust growth and strategic acquisitions. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed signals, which temper the overall score.
Heico Cp Cl A (HEI.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.32B
Dividend Yield0.09%
Average Volume (3M)191.28K
Price to Earnings (P/E)56.0
Beta (1Y)0.71
Revenue Growth13.46%
EPS Growth33.75%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.26
Shares Outstanding84,152,810
10 Day Avg. Volume186,838
30 Day Avg. Volume191,284
Financial Highlights & Ratios
PEG Ratio2.52
Price to Book (P/B)9.33
Price to Sales (P/S)8.79
P/FCF Ratio55.23
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue9.11
Enterprise Value/Gross Profit21.96
Enterprise Value/Ebitda33.92
Forecast
1Y Price Target
$278.00Price Target Upside8.87% Upside
Rating ConsensusModerate Buy
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 generates revenue primarily through the sale of aircraft replacement parts and repair services, which are crucial for maintaining operational efficiency and safety in aviation. The Aerospace Group is a significant contributor to revenue, driven by strong demand for aftermarket parts and services from commercial airlines and military contracts. Additionally, the Electronic Technologies Group earns revenue from selling electronic components and systems, which cater to various sectors including defense and telecommunications. Heico benefits from long-term relationships with major aerospace and defense customers, as well as strategic partnerships that enhance its product offerings. The company also capitalizes on the growing trend of aircraft maintenance, repair, and overhaul (MRO) services, further solidifying its revenue streams.
Heico Cp Cl A Earnings Call Summary
Earnings Call Date:Aug 25, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Dec 22, 2025
Earnings Call Sentiment Positive
HEICO Corporation reported an outstanding third quarter with record-setting performance across all key metrics. The company continues to benefit from strong organic growth and a strategic acquisition strategy. Despite some increased expenses and minor supply chain challenges, HEICO's robust financial health and market demand support a positive outlook.Q3-2025 Updates
Positive Updates
Record Third Quarter Results
Consolidated net income increased 30% to $177.3 million or $1.26 per diluted share, with operating income and net sales increasing 22% and 16% respectively compared to the previous year.
Flight Support Group Performance
Set all-time quarterly operating income and net sales records, improving 29% and 18% respectively, driven by 13% organic growth and successful acquisitions.
Electronic Technologies Group Growth
Net sales increased 10% with strong demand in electronics and space products, reflecting 7% organic growth.
Strong Cash Flow and Liquidity
Cash flow from operations increased 8% to $231.2 million, representing 130% of net income. The net debt-to-EBITDA ratio improved to 1.9x.
Successful Acquisition Strategy
Completed the acquisition of Gables Engineering, marking the third largest acquisition in HEICO's history, expected to be accretive to earnings within a year.
Negative Updates
Increased SG&A Expenses in Electronic Technologies Group
Operating margin decreased due to higher performance-based compensation expenses.
Destocking Concerns
Some areas experienced destocking, though it was netted out by high demand in other areas.
Company Guidance
In the third quarter of fiscal 2025, HEICO Corporation reported record results, with consolidated net income increasing by 30% to $177.3 million, or $1.26 per diluted share, compared to $136.6 million, or $0.97 per diluted share, in the same period of fiscal 2024. Operating income and net sales rose by 22% and 16%, respectively. The Flight Support Group achieved a 29% increase in operating income and an 18% rise in net sales, with 13% organic growth driven by strong demand across product lines. The Electronic Technologies Group set a net sales record with a 10% increase, reflecting improved demand and double-digit organic growth in electronics and space products. Cash flow from operations grew by 8% to $231.2 million, representing 130% of net income, as the company continued to leverage its strong cash generation for organic growth and acquisitions. Consolidated EBITDA increased by 21% to $316.4 million. The company maintained a net debt-to-EBITDA ratio of 1.9x as of July 31, 2025, despite deploying $630 million on acquisitions over the past nine months. HEICO also completed its fifth acquisition of the fiscal year, acquiring Gables Engineering, which is expected to be accretive to earnings within a year.Heico Cp Cl A Financial Statement Overview
Summary
Heico Cp Cl A exhibits strong financial performance with impressive revenue and profit growth, robust margins, and a solid balance sheet with minimal leverage. The cash flow is healthy, supporting ongoing operations and potential growth initiatives. However, the low debt levels may limit growth potential through leverage.Income Statement
Heico Cp Cl A demonstrates strong revenue growth with a 3.76% increase in TTM, supported by solid gross and net profit margins of 41.48% and 14.96%, respectively. The EBIT and EBITDA margins are robust at 22.44% and 25.66%, indicating efficient operations. The consistent upward trajectory in revenue and profitability highlights the company's competitive position in the aerospace and defense industry.85
Very Positive
Balance Sheet
The company's balance sheet is strong, with a very low debt-to-equity ratio of 0.0009 in TTM, reflecting minimal leverage and financial risk. The return on equity is healthy at 16.57%, showcasing effective use of equity to generate profits. The equity ratio is solid, indicating a stable financial structure. However, the high equity levels may suggest underutilization of debt for growth opportunities.78
Positive
Cash Flow
Heico Cp Cl A's cash flow performance is commendable, with a 2.67% growth in free cash flow in TTM and a strong operating cash flow to net income ratio of 1.19. The free cash flow to net income ratio is high at 0.93, indicating efficient cash generation relative to earnings. The positive cash flow trends support the company's ability to fund operations and investments without relying heavily on external financing.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.29B | 3.86B | 2.97B | 2.21B | 1.87B | 1.79B |
| Gross Profit | 1.78B | 1.61B | 1.25B | 938.82M | 796.30M | 747.69M |
| EBITDA | 1.15B | 1.00B | 756.77M | 592.71M | 486.24M | 465.71M |
| Net Income | 641.78M | 514.11M | 403.60M | 351.68M | 304.22M | 313.98M |
Balance Sheet | ||||||
| Total Assets | 8.53B | 7.59B | 7.20B | 4.10B | 3.50B | 3.55B |
| Cash, Cash Equivalents and Short-Term Investments | 261.89M | 162.10M | 171.05M | 139.50M | 108.30M | 406.85M |
| Total Debt | 2.45B | 2.25B | 2.50B | 304.93M | 250.37M | 754.01M |
| Total Liabilities | 3.88B | 3.90B | 4.00B | 1.12B | 948.88M | 1.32B |
| Stockholders Equity | 4.14B | 3.64B | 3.15B | 2.61B | 2.26B | 1.98B |
Cash Flow | ||||||
| Free Cash Flow | 782.44M | 614.11M | 399.30M | 435.87M | 407.90M | 386.19M |
| Operating Cash Flow | 844.56M | 672.37M | 448.74M | 467.86M | 444.08M | 409.13M |
| Investing Cash Flow | -878.74M | -293.20M | -2.48B | -395.83M | -183.45M | -199.04M |
| Financing Cash Flow | 89.90M | -389.39M | 2.07B | -33.83M | -558.97M | 137.74M |
Heico Cp Cl A Technical Analysis
Positive
255.34
Price Trends
249.46
Positive
238.71
Positive
217.12
Positive
Market Momentum
1.79
Negative
56.79
Neutral
63.98
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 255.34 is above the 20-day moving average (MA) of 248.96, above the 50-day MA of 249.46, and above the 200-day MA of 217.12, indicating a bullish trend. The MACD of 1.79 indicates Negative momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 63.98 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 20 risk factors in its most recent earnings report. Heico Cp Cl A reported the most risks in the "Production" 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 52.74B | 31.47 | 7.70% | 1.69% | 2.93% | 43.29% | |
77 Outperform | 19.55B | 43.77 | 16.65% | 0.17% | 9.89% | 16.20% | |
76 Outperform | 39.32B | 70.88 | 15.50% | 0.07% | 13.46% | 33.75% | |
74 Outperform | $39.32B | 56.03 | 16.71% | 0.09% | 13.46% | 33.75% | |
73 Outperform | 14.38B | 37.95 | 15.71% | 0.45% | 5.53% | 5.56% | |
63 Neutral | 4.36B | -111.60 | -2.57% | ― | 9.19% | 72.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
HEI.A
Heico Cp Cl A
255.34
54.33
27.03%
CW
Curtiss-Wright
513.07
200.21
63.99%
LHX
L3Harris Technologies
284.27
59.00
26.19%
HEI
HEICO
322.81
64.21
24.83%
MRCY
Mercury Systems
74.59
38.28
105.43%
WWD
Woodward
240.44
76.91
47.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.