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

• Market Cap: $39.52B
• Dividend Yield: 0.09%
• Average Volume (3M): 248.25K
• Price to Earnings (P/E): 60.1
• Beta (1Y): 0.76
• Revenue Growth: 17.74%
• EPS Growth: 34.81%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 87
• Industry: Aerospace & Defense
• EPS (TTM): 1.12
• Shares Outstanding: 84,055,336
• 10 Day Avg. Volume: 166,829
• 30 Day Avg. Volume: 248,255
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 7.45
• Enterprise Value/Gross Profit: 18.93
• Enterprise Value/Ebitda: 29.28
• 1Y Price Target: $270.00
• Price Target Upside: 4.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $270.00 ▲(4.94%Upside)

The overall stock score reflects strong financial performance and positive earnings call highlights, with significant growth in revenue and profitability. Technical indicators show bullish momentum, though valuation remains a concern due to a high P/E ratio. Despite challenges like supply chain issues, the company maintains a positive growth trajectory.

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 Corporation generates revenue through its two main segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). The FSG segment earns money by manufacturing and selling FAA-approved jet engine and aircraft component replacement parts, maintenance, repair, and overhaul (MRO) services, and distributing aircraft parts and components. The ETG segment generates income by designing and manufacturing specialized electronic components for aerospace, defense, and other industrial applications. HEICO's revenue streams are bolstered by its strong customer base, which includes commercial airlines, defense contractors, and OEMs. Additionally, strategic acquisitions and partnerships help expand its market reach and product offerings, contributing to its overall earnings.

Heico Cp Cl A Financial Statement Overview

Summary

Heico Cp Cl A displays strong financial health characterized by consistent revenue and profit growth, solid profitability margins, and efficient cash flow management. The company's stable balance sheet and strong equity position offset the potential risk from an increase in debt.

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.

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.

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.

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	1.63B	1.50B	1.15B	862.76M	727.42M	682.13M
EBITDA	1.05B	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	290.27M	236.50M	739.83M
Total Liabilities	3.62B	3.90B	3.64B	1.12B	1.20B	1.54B
Stockholders Equity	3.97B	3.64B	3.15B	2.65B	2.30B	2.01B
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

• Technical Analysis Sentiment: Positive
• Last Price: 257.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 257.28 is above the 20-day moving average (MA) of 251.80, above the 50-day MA of 243.96, and above the 200-day MA of 210.21, indicating a bullish trend. The MACD of 3.68 indicates Negative momentum. The RSI at 62.15 is Neutral, neither overbought nor oversold. The STOCH value of 83.65 is Negative, 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
HEI	79 Outperform	$39.52B	75.99	16.34%	0.07%	17.74%	34.81%
HEI.A	78 Outperform	$39.52B	60.14	16.34%	0.09%	17.74%	34.81%
LHX	77 Outperform	$52.06B	31.07	8.90%	1.70%	2.93%	43.29%
CW	74 Outperform	$18.60B	43.90	17.40%	0.18%	9.77%	15.66%
WWD	72 Outperform	$15.43B	41.02	16.76%	0.41%	5.53%	5.56%
TXT	69 Neutral	$13.76B	17.47	11.42%	0.10%	1.19%	-6.77%
Sector *	66 Neutral	$2.59B	11.48	10.94%	3.89%	-1.27%	39.22%