Heico Cp Cl (HEI.A)
NYSE:HEI.A
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Heico Cp Cl A
(NYSE:HEI.A)
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Rating:73Outperform
Price Target:
$237.00
▼(-0.24% Downside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by strong financial quality and a positive earnings call backdrop (growth, cash generation, record backlog, and accretive M&A). This is partially offset by a rich valuation (high P/E, minimal yield) and a mixed near-term technical picture (slightly negative momentum and trading below the 50DMA).
Positive Factors
Strong cash generation and conversion
HEICO’s high cash conversion (FCF ≈92% of net income; TTM FCF ~$841M) creates durable internal funding for organic investment, dividend continuity and acquisitions. Reliable cash flow reduces financing dependence and supports capital allocation through aerospace cycles, improving long‑term resilience.
Negative Factors
ETG margin compression and shipment timing
ETG margins are exposed to product‑mix and timing swings (notably space shipment variability), creating durable volatility in reported profitability. If mix shifts toward lower‑margin products or timing mismatches persist, consolidated margins and earnings visibility could be pressured across quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and conversion
HEICO’s high cash conversion (FCF ≈92% of net income; TTM FCF ~$841M) creates durable internal funding for organic investment, dividend continuity and acquisitions. Reliable cash flow reduces financing dependence and supports capital allocation through aerospace cycles, improving long‑term resilience.
Read all positive factors
Heico Cp Cl A (HEI.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.09B
Dividend Yield0.1%
Average Volume (3M)373.81K
Price to Earnings (P/E)60.6
Beta (1Y)0.80
Revenue Growth16.26%
EPS Growth33.72%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.35
Shares Outstanding84,369,870
10 Day Avg. Volume284,489
30 Day Avg. Volume373,812
Financial Highlights & Ratios
PEG Ratio1.88
Price to Book (P/B)10.26
Price to Sales (P/S)9.85
P/FCF Ratio51.30
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue9.30
Enterprise Value/Gross Profit23.10
Enterprise Value/Ebitda34.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.6
Revenue Forecast (FY)$5.06B
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...
How the Company Makes Money
HEICO makes money primarily by selling products and services through its two operating segments. (1) Flight Support Group (FSG): This segment generates revenue largely from the aerospace aftermarket. HEICO subsidiaries develop and sell FAA-approve...
Heico Cp Cl A Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The call presented a largely positive picture: HEICO delivered record net income, solid top-line growth, expanded EBITDA, strong performance in the Flight Support Group, a record ETG backlog, robust organic growth (company-wide ~12% organic in key areas), and active strategic acquisitions expected to be accretive. Near-term challenges include ETG margin pressure driven by unfavorable mix and shipment timing, amortization drag from acquisitions, modest inflationary pressures in components, and a modest increase in leverage from recent deals. Management described the ETG margin weakness as mix/timing related and expects improvement through the year. Given the magnitude and number of material positive operating and financial metrics, supported by a healthy M&A pipeline and record backlog, the positives significantly outweigh the contained, largely temporary negatives.Positive Updates
Record Net Income and EPS Growth
Consolidated net income rose 13% year-over-year to a record $190.2 million, or $1.35 per diluted share, compared to $168.0 million or $1.20 per diluted share in Q1 FY2025. Net income benefited from discrete tax benefits from stock option exercises ($21.8M net of NCI in Q1 FY26).
Negative Updates
ETG Operating Income and Margin Compression
Electronic Technologies Group operating income decreased to $73.2 million from $76.5 million (≈ -4.3% year-over-year). ETG operating margin fell to 19.8% from 23.1% (a ~330 basis-point decline) driven primarily by an unfavorable product mix and lower shipments of space products in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Net Income and EPS Growth
Consolidated net income rose 13% year-over-year to a record $190.2 million, or $1.35 per diluted share, compared to $168.0 million or $1.20 per diluted share in Q1 FY2025. Net income benefited from discrete tax benefits from stock option exercises ($21.8M net of NCI in Q1 FY26).
Read all positive updates
Company Guidance
Management's guidance was largely qualitative but contained several concrete datapoints: they expect continued sales momentum in both Flight Support and Electronic Technologies driven by organic demand plus acquisitions (recent deals include Rockmart, Ethos and an 80% acquisition expected to close in Q2 that management said should be accretive within a year); they reiterated that ETG margins should improve as the year progresses and called out an expected GAAP margin range for ETG of roughly 22–24% (about 26–28% on a cash/EBITA basis before acquisition amortization), while FSG continues to deliver strong cash margins (Q1 FSG net sales were $820M, +15% with 12% organic growth, operating margin 24.5% and EBITA ≈27.1%, +110bps year-over-year); Q1 company totals cited include consolidated net income $190.2M (+13%, $1.35/diluted share), consolidated EBITDA $312M (+14%), consolidated operating income and net sales up 15% and 14%, ETG net sales $370.7M (+12%, 6% organic) and ETG operating income $73.2M, backlog at a record level, operating cash flow $178.6M (impacted by a ~$22.7M LCP distribution with another ~$73M planned but fully funded and net cash neutral), and a flexible balance sheet with net debt/EBITDA ~1.79x; management did not provide a formal full‑year revenue or EPS target on the call.Heico Cp Cl A Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.63B | 4.49B | 3.86B | 2.97B | 2.21B | 1.87B |
| Gross Profit | 1.86B | 1.79B | 1.61B | 1.25B | 938.82M | 796.30M |
| EBITDA | 1.26B | 1.22B | 1.00B | 756.77M | 592.71M | 486.24M |
| Net Income | 712.62M | 690.38M | 514.11M | 403.60M | 351.68M | 304.22M |
Balance Sheet | ||||||
| Total Assets | 9.04B | 8.50B | 7.59B | 7.20B | 4.10B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 260.97M | 217.78M | 162.10M | 171.05M | 139.50M | 108.30M |
| Total Debt | 2.51B | 2.19B | 2.25B | 2.50B | 304.93M | 250.37M |
| Total Liabilities | 4.00B | 4.12B | 3.90B | 4.00B | 1.12B | 948.88M |
| Stockholders Equity | 4.50B | 4.31B | 3.64B | 3.15B | 2.61B | 2.26B |
Cash Flow | ||||||
| Free Cash Flow | 840.78M | 861.38M | 614.11M | 399.30M | 435.87M | 407.90M |
| Operating Cash Flow | 909.83M | 934.27M | 672.37M | 448.74M | 467.86M | 444.08M |
| Investing Cash Flow | -894.74M | -731.69M | -293.20M | -2.48B | -395.83M | -183.45M |
| Financing Cash Flow | 72.26M | -150.68M | -389.39M | 2.07B | -33.83M | -558.97M |
Heico Cp Cl A Technical Analysis
Neutral
237.58
Price Trends
236.03
Negative
244.75
Negative
247.03
Negative
Market Momentum
-6.37
Negative
52.52
Neutral
75.02
Neutral
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 237.58 is above the 20-day moving average (MA) of 215.75, above the 50-day MA of 236.03, and below the 200-day MA of 247.03, indicating a neutral trend. The MACD of -6.37 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 75.02 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.55B | 33.82 | 19.63% | 0.35% | 7.30% | 19.54% | |
75 Outperform | $67.61B | 35.53 | 8.28% | 1.61% | 2.83% | 47.00% | |
73 Outperform | $35.09B | 60.62 | 16.85% | 0.10% | 16.26% | 33.72% | |
72 Outperform | $26.88B | 42.60 | 18.74% | 0.16% | 9.51% | 16.03% | |
66 Neutral | $35.09B | 60.62 | 16.85% | 0.07% | 16.26% | 33.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $4.85B | -73.03 | -2.08% | ― | 8.63% | 72.72% |
* Industrials Sector Average
HEI.A
Heico Cp Cl A
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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.