Heico Cp Cl (HEI.A)
NYSE:HEI.A
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Heico Cp Cl A
(NYSE:HEI.A)
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Rating:74Outperform
Price Target:
$257.00
▲(8.17% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by strong financial performance (profitability and cash generation) and a very upbeat earnings outlook with record operating metrics. Offsetting this, valuation is expensive (high P/E with minimal dividend support) and technicals are only moderately constructive, with near-term momentum improving but the stock still below longer-term moving averages.
Positive Factors
Cash generation
HEICO's very strong operating and free cash flow, with FCF running close to net income (~0.93x TTM), provides durable funding for organic investment, accretive M&A, share buybacks or debt reduction. Reliable cash conversion improves resilience through aerospace cycles and underpins strategic optionality over months.
Negative Factors
Acquisition-related amortization
Continued acquisitions drive intangible amortization that depresses GAAP margins despite healthy cash profitability. This structural drag can mute reported earnings growth and complicate investor assessment of operating performance for multiple quarters, even if underlying cash margins remain strong.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
HEICO's very strong operating and free cash flow, with FCF running close to net income (~0.93x TTM), provides durable funding for organic investment, accretive M&A, share buybacks or debt reduction. Reliable cash conversion improves resilience through aerospace cycles and underpins strategic optionality over months.
Read all positive factors
Heico Cp Cl A (HEI.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.45B
Dividend Yield0.1%
Average Volume (3M)307.95K
Price to Earnings (P/E)60.9
Beta (1Y)0.84
Revenue Growth18.80%
EPS Growth30.84%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)5.66
Shares Outstanding84,369,870
10 Day Avg. Volume342,926
30 Day Avg. Volume307,949
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 Cap1.31
Enterprise Value/Revenue9.74
Enterprise Value/Gross Profit50.71
Enterprise Value/Ebitda42.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.63
Revenue Forecast (FY)$5.08B
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:May 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 31, 2026
Earnings Call Sentiment Positive
The call conveyed a strong positive operational and financial performance: record net income, EBITDA, segment revenues and margins, robust cash generation, and accretive acquisitions. Management emphasized broad-based organic growth across end markets (commercial aviation, defense and space), a healthy M&A pipeline, and the ability to scale. Headwinds are manageable: acquisition amortization reduced GAAP margins, supply-chain delays restrained component repair growth, there was some regional softness in the Middle East, and ETG/space margins remain somewhat volatile. Overall, the upbeat record results and multiple high-impact metrics substantially outweigh the noted challenges.Positive Updates
Record Consolidated Profitability
Consolidated net income rose 49% year-over-year to a record $233.8 million ($1.66 per diluted share) in Q2 FY26, reflecting strong profitability across the company.
Negative Updates
Acquisition-Related Amortization Drag on Margins
Acquisition-related intangible amortization materially reduced reported margins: roughly 240 basis points of FSG operating margin and ~410 basis points of ETG operating margin were consumed by amortization in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Consolidated Profitability
Consolidated net income rose 49% year-over-year to a record $233.8 million ($1.66 per diluted share) in Q2 FY26, reflecting strong profitability across the company.
Read all positive updates
Company Guidance
HEICO said it expects increased sales for the remainder of fiscal 2026 in both the Flight Support Group (FSG) and Electronic Technologies Group (ETG), supported by strong underlying demand, record or near‑record orders/backlogs and recent acquisitions (four completed so far in FY‑26, including Sherwood Avionics and Southwest Antennas); management reiterated opportunistic capital allocation while maintaining liquidity (net debt/EBITDA was 1.74x as of 4/30/26). Key quarter metrics cited that frame the outlook include consolidated net income up 49% to $233.8M ($1.66 diluted), consolidated net sales up 25%, operating income up 41%, operating cash flow +43% to $292M and consolidated EBITDA of $408.3M (+37%). Segment metrics referenced in guidance: FSG Q2 net sales $929.4M (+21%), operating income $243.1M (+31%), operating margin 26.2% (EBITA/cash margin ~28.6%, +160 bps y/y) and organic growth ~19%; ETG Q2 operating income $121.8M (+56%), operating margin 26.5% (cash/EBIT‑before‑amortization ~30.6%, with ~410 bps of amortization), and management expects ETG GAAP operating margins of roughly 22%–24% for fiscal 2026 (Carlos suggested FSG might sustainably sit nearer 24%–26%).Heico Cp Cl A Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.91B | 4.49B | 3.86B | 2.97B | 2.21B | 1.87B |
| Gross Profit | 943.00M | 1.79B | 1.61B | 1.25B | 938.82M | 796.30M |
| EBITDA | 1.12B | 1.22B | 1.00B | 756.77M | 592.71M | 486.24M |
| Net Income | 789.63M | 690.38M | 514.11M | 403.60M | 351.68M | 304.22M |
Balance Sheet | ||||||
| Total Assets | 9.59B | 8.50B | 7.59B | 7.20B | 4.10B | 3.50B |
| Cash, Cash Equivalents and Short-Term Investments | 210.34M | 217.78M | 162.10M | 171.05M | 139.50M | 108.30M |
| Total Debt | 0.00 | 2.19B | 2.25B | 2.50B | 304.93M | 250.37M |
| Total Liabilities | 4.20B | 4.12B | 3.90B | 4.00B | 1.12B | 948.88M |
| Stockholders Equity | 5.39B | 4.31B | 3.64B | 3.15B | 2.61B | 2.26B |
Cash Flow | ||||||
| Free Cash Flow | 925.97M | 861.38M | 614.11M | 399.30M | 435.87M | 407.90M |
| Operating Cash Flow | 997.11M | 934.27M | 672.37M | 448.74M | 467.86M | 444.08M |
| Investing Cash Flow | -1.24B | -731.69M | -293.20M | -2.48B | -395.83M | -183.45M |
| Financing Cash Flow | 211.95M | -150.68M | -389.39M | 2.07B | -33.83M | -558.97M |
Heico Cp Cl A Technical Analysis
Positive
237.58
Price Trends
216.61
Positive
234.76
Positive
241.22
Positive
Market Momentum
5.37
Negative
78.62
Negative
89.72
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 237.58 is above the 20-day moving average (MA) of 221.30, above the 50-day MA of 216.61, and below the 200-day MA of 241.22, indicating a bullish trend. The MACD of 5.37 indicates Negative momentum. The RSI at 78.62 is Negative, neither overbought nor oversold. The STOCH value of 89.72 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 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 | $36.45B | 60.95 | 16.85% | 0.07% | 18.80% | 30.84% | |
76 Outperform | $27.43B | 53.98 | 19.64% | 0.16% | 12.22% | 21.44% | |
74 Outperform | $36.45B | 60.95 | 16.85% | 0.10% | 18.80% | 30.84% | |
69 Neutral | $58.40B | 32.48 | 8.87% | 1.61% | 5.79% | 9.31% | |
69 Neutral | $21.34B | 41.26 | 20.25% | 0.35% | 19.03% | 34.44% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $5.83B | -455.30 | -0.96% | ― | 8.95% | 78.82% |
* Industrials Sector Average
HEI.A
Heico Cp Cl A
257.36
20.54
8.67%
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MRCY
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WWD
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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.