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Heico Cp Cl A (HEI.A)
NYSE:HEI.A
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Heico Cp Cl A
(NYSE:HEI.A)
Rating:69Neutral
Price Target:
$264.00
▲(8.37% Upside)
Heico Cp Cl A (HEI.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.08B
Dividend Yield0.09%
Average Volume (3M)170.22K
Price to Earnings (P/E)56.0
Beta (1Y)0.73
Revenue Growth17.74%
EPS Growth34.81%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength80
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.12
Shares Outstanding84,055,336
10 Day Avg. Volume155,616
30 Day Avg. Volume170,218
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue7.45
Enterprise Value/Gross Profit17.68
Enterprise Value/Ebitda28.07
Forecast
1Y Price Target
$264.00Price Target Upside8.37% Upside
Rating ConsensusHold
Number of Analyst Covering0
Heico Cp Cl A Business Overview & Revenue Model
Company DescriptionHeico Corporation (Class A) is a leading aerospace and electronics company that operates primarily in two segments: the Aerospace Group and the Electronic Technologies Group. The Aerospace Group focuses on the manufacturing of aircraft replacement parts and repair services, serving both commercial and military aviation markets. The Electronic Technologies Group specializes in producing a wide array of electronic components and systems, including those for defense, space, and telecommunications applications. Heico's commitment to innovation and quality has positioned it as a key player in the aerospace and electronics industries.
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:May 27, 2025
(Q2-2025)
| % Change Since: 12.72%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment, with record-breaking financial performance, robust organic and acquisition-driven growth, and significant improvements in net income and cash flow. Despite some challenges in the demand for specific products and supply chain constraints, the overall outlook remains optimistic.Q2-2025 Updates
Positive Updates
Record-Breaking Financial Performance
HEICO achieved record consolidated operating income and net sales in Q2 2025, with increases of 19% and 15%, respectively, compared to Q2 2024. The Flight Support Group and Electronic Technologies Group also saw significant growth.
Strong Organic and Acquisition-Driven Growth
HEICO experienced 14% organic growth, driven by increased demand across all product lines and contributions from recent acquisitions. The Flight Support Group set records with 24% and 19% growth in operating income and net sales, respectively.
Significant Increase in Net Income and Cash Flow
Net income rose 27% to $156.8 million, while cash flow from operating activities increased by 45% to $204.7 million, indicating strong financial health and operational efficiency.
Successful Acquisition Strategy
HEICO completed its fourth acquisition of fiscal 2025, acquiring Rosen Aviation LLC. The acquisition is expected to be accretive to earnings within a year.
Defense Segment Growth
The Flight Support Group's organic defense net sales grew by 18%, driven by increased demand and a substantial backlog of defense missile orders.
Negative Updates
Challenges in Medical and Defense Product Demand
The Electronic Technologies Group saw decreased demand for medical and defense products, which impacted their gross profit margin.
Supply Chain Constraints
HEICO faced ongoing supply constraints from external suppliers, which limited the ability to meet demand fully across some product lines.
Company Guidance
During HEICO Corporation's Second Quarter 2025 Financial Results Call, the company reported record results with consolidated operating income and net sales increasing by 19% and 15%, respectively, compared to the same period in 2024. The Flight Support Group set all-time records with operating income and net sales up 24% and 19%, driven by 14% organic growth and recent acquisitions. The Electronic Technologies Group also saw strong performance with a 7% increase in net sales, reflecting 4% organic growth. Notably, consolidated net income rose by 27% to $156.8 million, and cash flow from operating activities climbed 45% to $204.7 million. HEICO completed its fourth acquisition of fiscal 2025, acquiring Rosen Aviation LLC, expected to be accretive within a year. The company remains optimistic for fiscal 2025, focusing on growth in defense, space, and commercial aviation sectors.Heico Cp Cl A Financial Statement Overview
Summary
Heico Cp Cl A demonstrates strong financial performance with consistent revenue growth, robust profitability metrics, and efficient cash flow management. The increase in debt warrants monitoring, but the company's balance sheet remains stable with a strong equity position.Income Statement
Heico Cp Cl A demonstrates strong financial performance with consistent revenue growth, evidenced by a TTM revenue growth rate of 7.17% compared to the previous annual period. The company maintains robust profitability metrics with a gross profit margin of 39.34% and a net profit margin of 14.54% in the TTM. EBITDA and EBIT margins are also healthy at 25.45% and 22.02% respectively, indicating efficient operations.85
Very Positive
Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.57, indicating moderate leverage. The equity ratio stands at 49.01%, reflecting a solid equity base relative to total assets. Return on equity is impressive at 15.15%, highlighting effective use of shareholder funds. However, there is a noticeable increase in total debt over the period, which poses a potential risk if not managed properly.78
Positive
Cash Flow
The cash flow statement is strong, with a TTM operating cash flow to net income ratio of 1.38, suggesting effective cash generation from core operations. Free cash flow growth is significant at 24.08%, indicating improved cash efficiency. The company has a robust free cash flow to net income ratio of 1.27, underscoring its ability to generate cash relative to earnings.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.13B | 3.86B | 2.97B | 2.21B | 1.87B | 1.79B |
| Gross Profit | 1.74B | 1.61B | 1.25B | 938.82M | 796.30M | 747.69M |
| EBITDA | 1.10B | 1.00B | 756.77M | 592.71M | 486.24M | 465.71M |
| Net Income | 601.01M | 514.11M | 403.60M | 351.68M | 304.22M | 313.98M |
Balance Sheet | ||||||
| Total Assets | 8.09B | 7.59B | 7.20B | 4.10B | 3.50B | 3.55B |
| Cash, Cash Equivalents and Short-Term Investments | 242.31M | 162.10M | 171.05M | 139.50M | 108.30M | 406.85M |
| Total Debt | 2.28B | 2.25B | 2.50B | 304.93M | 250.37M | 754.01M |
| Total Liabilities | 3.62B | 3.90B | 4.00B | 1.12B | 948.88M | 1.32B |
| Stockholders Equity | 3.97B | 3.64B | 3.15B | 2.61B | 2.26B | 1.98B |
Cash Flow | ||||||
| Free Cash Flow | 762.07M | 614.11M | 399.30M | 435.87M | 407.90M | 386.19M |
| Operating Cash Flow | 827.31M | 672.37M | 448.74M | 467.86M | 444.08M | 409.13M |
| Investing Cash Flow | -547.67M | -293.20M | -2.48B | -395.83M | -183.45M | -199.04M |
| Financing Cash Flow | -244.94M | -389.39M | 2.07B | -33.83M | -558.97M | 137.74M |
Heico Cp Cl A Technical Analysis
Positive
243.62
Price Trends
248.58
Negative
230.29
Positive
213.64
Positive
Market Momentum
-2.42
Positive
46.53
Neutral
35.64
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 243.62 is below the 20-day moving average (MA) of 247.87, below the 50-day MA of 248.58, and above the 200-day MA of 213.64, indicating a neutral trend. The MACD of -2.42 indicates Positive momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 35.64 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $37.08B | 71.93 | 16.34% | 0.07% | 17.74% | 34.81% | |
78 Outperform | $51.60B | 30.79 | 8.90% | 1.71% | 2.93% | 43.29% | |
77 Outperform | $18.12B | 40.58 | 17.46% | 0.18% | 9.89% | 16.20% | |
73 Outperform | $14.87B | 39.24 | 16.76% | 0.44% | 5.53% | 5.56% | |
71 Outperform | ¥267.79B | 15.15 | 8.31% | 2.75% | 6.08% | 11.04% | |
71 Outperform | $14.53B | 18.45 | 11.42% | 0.10% | 1.19% | -6.77% | |
69 Neutral | $37.08B | 56.01 | 16.34% | 0.09% | 17.74% | 34.81% |
* Industrials Sector Average
Performance Comparison
HEI.A
Heico Cp Cl A
243.62
51.63
26.89%
CW
Curtiss-Wright
480.93
167.77
53.57%
LHX
L3Harris Technologies
275.77
51.38
22.90%
HEI
HEICO
309.59
63.89
26.00%
TXT
Textron
81.53
-8.44
-9.38%
WWD
Woodward
248.04
86.27
53.33%
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.