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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:78Outperform
Price Target:
$270.00
â–²(11.54%Upside)
Heico Cp Cl A (HEI.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.12B
Dividend Yield0.1%
Average Volume (3M)316.95K
Price to Earnings (P/E)56.6
Beta (1Y)0.75
Revenue Growth17.74%
EPS Growth34.81%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength89
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.12
Shares Outstanding84,055,336
10 Day Avg. Volume336,005
30 Day Avg. Volume316,947
Financial Highlights & Ratios
PEG Ratio12.28
Price to Book (P/B)10.89
Price to Sales (P/S)0.00
P/FCF Ratio49.12
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit24.29
Enterprise Value/Ebitda9.89
Forecast
1Y Price Target
$270.00Price Target Upside11.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Heico Cp Cl A Business Overview & Revenue Model
Company DescriptionHEICO Corporation, through its subsidiaries, operates as a leading technology-driven aerospace, defense, and electronics company. The company is primarily engaged in the design, manufacture, and sale of aerospace, defense, and electronic products and services. HEICO's operations are divided into two segments: the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). The FSG provides jet engine and aircraft component replacement parts, while the ETG offers niche electronic, electro-optical, microwave, and other products to the defense, aerospace, and electronics industries.
How the Company Makes MoneyHEICO 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 Earnings Call Summary
Earnings Call Date:May 27, 2025
(Q2-2025)
| % Change Since: 12.00%|
Next Earnings Date:Sep 01, 2025
Earnings Call Sentiment Positive
HEICO Corporation demonstrated strong financial performance with record-breaking results in several areas, particularly in their Flight Support and Electronic Technologies Groups. Significant cash flow increases and successful acquisitions highlight a positive growth trajectory. However, challenges such as supply chain constraints and decreased demand for certain products present obstacles that the company needs to navigate.Q2-2025 Updates
Positive Updates
Record Operating Income and Net Sales
Consolidated operating income and net sales in the second quarter of fiscal 2025 were record results for HEICO, increasing by 19% and 15% respectively, compared to the second quarter of fiscal 2024.
Flight Support Group Performance
The Flight Support Group set all-time quarterly operating income and net sales records, improving 24% and 19%, respectively, over the second quarter of fiscal 2024, with strong 14% organic growth.
Electronic Technologies Group Growth
The Electronic Technologies Group reported a strong second quarter with net sales increasing 7% to $342.2 million, reflecting an organic growth of 4% in the impact from fiscal 2024 and 2025 acquisitions.
Significant Increase in Cash Flow
Cash flow provided by operating activities increased 45% to $204.7 million in the second quarter of fiscal 2025, up from $141.1 million in the second quarter of fiscal 2024.
Successful Acquisition of Rosen Aviation LLC
HEICO's Electronic Technologies Group acquired Rosen Aviation LLC, expected to be accretive to earnings within the first year following the acquisition.
Negative Updates
Lower Gross Profit Margin in Electronic Technologies Group
The Electronic Technologies Group’s operating margin decreased to 22.8% in the second quarter of fiscal 2025, from 23.6% in the second quarter of fiscal 2024, due to a lower gross profit margin.
Decreased Demand for Medical and Defense Products
The Electronic Technologies Group experienced decreased demand for medical and defense products, affecting overall net sales growth.
Challenges with Supply Chain Constraints
The Flight Support Group is experiencing supply constraints, making it difficult to get products from suppliers, though they are overcoming many of these challenges.
Company Guidance
During the HEICO Corporation Second Quarter 2025 Financial Results Call, the company reported record financial performance, highlighting several key metrics. Consolidated operating income and net sales for the quarter increased by 19% and 15%, respectively, compared to the same period in fiscal 2024. The Flight Support Group achieved all-time quarterly records with a 24% increase in operating income and a 19% rise in net sales, driven by 14% organic growth and recent acquisitions. The Electronic Technologies Group also experienced strong demand, with double-digit organic net sales growth in space and aerospace products. Consolidated net income rose by 27% to $156.8 million, or $1.12 per diluted share, while cash flow from operating activities surged by 45% to $204.7 million. Consolidated EBITDA grew by 18% to $297.7 million. HEICO's net debt-to-EBITDA ratio improved to 1.86 times by April 30, 2025, down from 2.06 times on October 31, 2024. The company completed its fourth acquisition of the fiscal year, acquiring Rosen Aviation LLC, and anticipates this acquisition will be accretive to earnings within a year.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.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 | 1.63B | 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
Neutral
242.07
Price Trends
230.76
Positive
215.42
Positive
206.28
Positive
Market Momentum
4.96
Positive
49.08
Neutral
12.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEI.A, the sentiment is Neutral. The current price of 242.07 is below the 20-day moving average (MA) of 247.22, above the 50-day MA of 230.76, and above the 200-day MA of 206.28, indicating a neutral trend. The MACD of 4.96 indicates Positive momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 12.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $38.28B | 74.35 | 16.34% | 0.07% | 17.74% | 34.81% | |
78 Outperform | $38.12B | 56.58 | 16.34% | 0.10% | 17.74% | 34.81% | |
76 Outperform | $48.06B | 30.47 | 8.49% | 1.85% | 5.39% | 36.86% | |
75 Outperform | $14.89B | 19.30 | 11.70% | 0.10% | 0.57% | -5.62% | |
74 Outperform | $18.23B | 42.21 | 17.40% | 0.20% | 9.77% | 15.66% | |
72 Outperform | $14.87B | 40.36 | 16.35% | 0.44% | 4.96% | 8.41% | |
65 Neutral | $10.82B | 15.59 | 5.20% | 1.89% | 3.09% | -26.84% |
* Industrials Sector Average
Performance Comparison
HEI.A
Heico Cp Cl A
242.07
63.68
35.70%
CW
Curtiss-Wright
474.49
193.39
68.80%
LHX
L3Harris Technologies
260.10
34.35
15.22%
HEI
HEICO
311.59
85.96
38.10%
TXT
Textron
85.23
-2.90
-3.29%
WWD
Woodward
246.30
70.26
39.91%
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.