Heico Cp Cl A (HEI.A) AI Stock Analysis

• Market Cap: $42.28B
• Dividend Yield: 0.1%
• Average Volume (3M): 245.73K
• Price to Earnings (P/E): 55.3
• Beta (1Y): 0.75
• Revenue Growth: 16.26%
• EPS Growth: 33.72%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.33
• Shares Outstanding: 84,213,760
• 10 Day Avg. Volume: 241,534
• 30 Day Avg. Volume: 245,732
• PEG Ratio: 1.88
• Price to Book (P/B): 10.09
• Price to Sales (P/S): 9.85
• P/FCF Ratio: 51.30
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 10.30
• Enterprise Value/Gross Profit: 25.06
• Enterprise Value/Ebitda: 37.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.46
• Revenue Forecast (FY): $4.99B

• Rating: 79 Outperform
• Price Target: $292.00 ▲(22.91% Upside)

Heico Cp Cl A's strong financial performance and positive earnings call are the primary drivers of its high overall score. The company's robust growth and profitability metrics, combined with strategic acquisitions, position it well for future success. However, the high valuation and potential market challenges temper the outlook slightly.

Positive Factors

Revenue Growth

Strong revenue growth across key segments indicates robust demand and effective business strategies, supporting long-term expansion.

Cash Generation

Increased cash flow generation enhances financial flexibility, enabling strategic investments and acquisitions to drive future growth.

Acquisition Strategy

Strategic acquisitions bolster market position and diversify revenue streams, contributing to sustained competitive advantage.

Negative Factors

Market Challenges

Potential market challenges could impact future sales, necessitating strategic adjustments to mitigate risks and sustain growth.

Increased SG&A Expenses

Rising SG&A expenses may pressure margins, requiring cost management to maintain profitability and operational efficiency.

Operating Margin Pressure

Slight decline in operating margins highlights the need for efficiency improvements to sustain profitability in competitive markets.

Heico Cp Cl A Business Overview & Revenue Model

Company Description

HEICO 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 Money

Heico generates revenue primarily through the sale of its aerospace parts and electronic components, as well as through repair and maintenance services. The Flight Support Group, which is a major revenue driver, earns income by providing replacement parts and services to airlines and military organizations, often at a lower cost than original equipment manufacturers (OEMs). The Electronic Technologies Group generates revenue by selling high-performance electronic components to customers across various sectors including military, commercial aviation, and industrial markets. Significant partnerships with OEMs and defense contractors enhance Heico's market position and contribute to its revenue streams. Additionally, the company benefits from long-term contracts and a growing demand for aftermarket services, which are more profitable than initial equipment sales.

Heico Cp Cl A Financial Statement Overview

Summary

Heico Cp Cl A exhibits strong financial health with consistent revenue growth and robust profitability margins. The balance sheet reflects prudent leverage management, and cash flow metrics highlight strong cash generation capabilities. Overall, the company is well-positioned financially with strengths in growth, profitability, and stability.

Income Statement

Heico Cp Cl A has demonstrated consistent revenue growth over the years, with a notable 4.56% increase in the latest period. The company maintains strong profitability metrics, with a net profit margin of 15.39% and an EBITDA margin of 22.72% for the most recent year. These figures indicate robust operational efficiency and profitability, which are commendable in the Aerospace & Defense industry. However, the gross profit margin was not provided for the latest period, which slightly limits the analysis.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio, which has improved over time, indicating effective management of leverage. The latest debt-to-equity ratio is 0.50, reflecting a balanced approach to financing. Return on equity has been strong historically, although specific figures for the latest period are missing. The equity ratio stands at approximately 51.5%, suggesting a solid equity base relative to total assets. Overall, the balance sheet reflects stability and prudent financial management.

Cash Flow

Heico Cp Cl A has shown a positive trend in free cash flow growth, with a 10.09% increase in the latest year, indicating strong cash generation capabilities. The free cash flow to net income ratio is 0.92, suggesting efficient conversion of earnings into cash. The operating cash flow to net income ratio was not provided, but the available metrics highlight a solid cash flow position, supporting the company's operational and investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.49B	3.86B	2.97B	2.21B	1.87B
Gross Profit	1.79B	1.61B	1.25B	938.82M	796.30M
EBITDA	1.22B	1.00B	756.77M	592.71M	486.24M
Net Income	690.38M	514.11M	403.60M	351.68M	304.22M
Balance Sheet
Total Assets	8.50B	7.59B	7.20B	4.10B	3.50B
Cash, Cash Equivalents and Short-Term Investments	217.78M	162.10M	171.05M	139.50M	108.30M
Total Debt	2.19B	2.25B	2.50B	304.93M	250.37M
Total Liabilities	4.12B	3.90B	4.00B	1.12B	948.88M
Stockholders Equity	4.31B	3.64B	3.15B	2.61B	2.26B
Cash Flow
Free Cash Flow	861.38M	614.11M	399.30M	435.87M	407.90M
Operating Cash Flow	934.27M	672.37M	448.74M	467.86M	444.08M
Investing Cash Flow	-731.69M	-293.20M	-2.48B	-395.83M	-183.45M
Financing Cash Flow	-150.68M	-389.39M	2.07B	-33.83M	-558.97M

Heico Cp Cl A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 237.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 237.58 is below the 20-day moving average (MA) of 260.68, below the 50-day MA of 251.28, and below the 200-day MA of 239.95, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 65.89 is Neutral, neither overbought nor oversold. The STOCH value of 76.31 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WWD	80 Outperform	$19.83B	46.05	18.64%	0.35%	7.30%	19.54%
HEI.A	79 Outperform	$42.28B	55.34	17.39%	0.10%	16.26%	33.72%
HEI	77 Outperform	$42.28B	71.83	17.39%	0.07%	16.26%	33.72%
CW	74 Outperform	$23.48B	51.86	18.53%	0.16%	9.51%	16.03%
LHX	74 Outperform	$64.13B	36.81	9.13%	1.61%	2.83%	47.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	62 Neutral	$5.93B	-182.86	-2.24%	―	8.63%	72.72%