HEICO (HEI) AI Stock Analysis

• Market Cap: $40.35B
• Dividend Yield: 0.07%
• Average Volume (3M): 427.08K
• Price to Earnings (P/E): 68.3
• Beta (1Y): 0.74
• Revenue Growth: 16.26%
• EPS Growth: 33.72%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.33
• Shares Outstanding: 55,142,803
• 10 Day Avg. Volume: 564,306
• 30 Day Avg. Volume: 427,079
• PEG Ratio: 1.88
• Price to Book (P/B): 10.09
• Price to Sales (P/S): 9.85
• P/FCF Ratio: 51.30
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 10.30
• Enterprise Value/Gross Profit: 25.06
• Enterprise Value/Ebitda: 37.87
• 1Y Price Target: $370.90
• Price Target Upside: 10.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $380.00 ▲(13.49% Upside)

HEICO's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. Technical analysis indicates bullish momentum, although the stock appears overvalued based on its P/E ratio. The recent board appointment adds strategic value, enhancing the company's governance and growth potential.

Positive Factors

Revenue Growth

HEICO's strong revenue growth across segments underscores its ability to capture market demand and expand its customer base, ensuring sustained business momentum.

Cash Generation

Robust cash flow growth enhances HEICO's financial flexibility, enabling strategic investments and acquisitions to drive future growth.

Leadership Strength

The addition of an experienced director strengthens governance and strategic oversight, supporting HEICO's long-term growth and operational excellence.

Negative Factors

Increased SG&A Expenses

Rising SG&A expenses can pressure margins, potentially limiting profitability and affecting HEICO's ability to reinvest in its business.

Operating Margin Pressure

Decreasing operating margins in a key segment may signal challenges in cost management, impacting overall profitability and competitiveness.

Leadership Transition

Leadership changes can introduce uncertainty; however, continuity plans are in place, which may mitigate potential disruptions to strategic direction.

HEICO 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 generates revenue primarily through the sale of its aerospace parts and repair services, which are often targeted at the commercial aviation sector. The Flight Support Group focuses on providing replacement parts and repair services for aircraft, benefiting from a growing demand for aftermarket products due to the increase in air travel and the aging fleet of commercial aircraft. The Electronic Technologies Group offers a diverse range of electronic components and systems, which serve both military and civilian applications. Key revenue streams include sales to major airlines, defense contractors, and government agencies. Additionally, HEICO has established significant partnerships with major aerospace manufacturers, allowing them to participate in the supply chain for new aircraft. The company's focus on innovation and quality, along with a commitment to customer service, further enhances its ability to generate consistent revenue.

HEICO Financial Statement Overview

Summary

HEICO demonstrates strong financial health with consistent revenue and profit growth, manageable leverage, and efficient cash flow management. The income statement shows a robust net profit margin and revenue growth, while the balance sheet reflects a stable leverage position. Cash flow metrics indicate strong liquidity and operational efficiency.

Income Statement

HEICO has demonstrated consistent revenue growth, with a 4.56% increase in the latest year. The company maintains a strong net profit margin of 15.39%, indicating effective cost management and profitability. However, the gross profit margin data is missing, which limits a full assessment of production efficiency. Overall, the income statement reflects a robust financial performance with solid EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, improving from 0.79 to 0.62, indicating a stable leverage position. Return on equity is not available for the latest year, but past data suggests a healthy ROE. The equity ratio is not directly provided, but the company's equity position appears strong relative to its assets, supporting financial stability.

Cash Flow

HEICO's cash flow statement reveals a significant 10.09% growth in free cash flow, highlighting strong cash generation capabilities. The free cash flow to net income ratio is high at 0.92, indicating efficient conversion of profits into cash. The operating cash flow to net income ratio is not provided, but overall cash flow metrics suggest robust liquidity and operational efficiency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.49B	3.86B	2.97B	2.21B	1.87B
Gross Profit	1.79B	1.61B	1.25B	938.82M	796.30M
EBITDA	1.22B	1.00B	756.77M	592.71M	486.24M
Net Income	690.38M	514.11M	403.60M	351.68M	304.22M
Balance Sheet
Total Assets	8.50B	7.59B	7.20B	4.10B	3.50B
Cash, Cash Equivalents and Short-Term Investments	217.78M	162.10M	171.05M	139.50M	108.30M
Total Debt	2.17B	2.25B	2.50B	304.93M	250.37M
Total Liabilities	3.65B	3.90B	4.00B	1.12B	948.88M
Stockholders Equity	4.38B	3.64B	3.15B	2.61B	2.26B
Cash Flow
Free Cash Flow	861.38M	614.11M	399.30M	435.87M	407.90M
Operating Cash Flow	934.27M	672.37M	448.74M	467.86M	444.08M
Investing Cash Flow	-731.69M	-293.20M	-2.48B	-395.83M	-183.45M
Financing Cash Flow	-150.68M	-389.39M	2.07B	-33.83M	-558.97M

HEICO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 334.84
• 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, the sentiment is Positive. The current price of 334.84 is above the 20-day moving average (MA) of 316.85, above the 50-day MA of 315.40, and above the 200-day MA of 300.91, indicating a bullish trend. The MACD of 5.30 indicates Negative momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 90.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HEI.

HEICO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WWD	79 Outperform	$18.64B	43.29	18.64%	0.35%	7.30%	19.54%
HEI	77 Outperform	$40.35B	68.27	17.39%	0.07%	16.26%	33.72%
BWXT	75 Outperform	$16.08B	52.60	26.69%	0.56%	14.01%	10.92%
TXT	75 Outperform	$15.90B	19.85	11.46%	0.09%	1.83%	-0.73%
CW	74 Outperform	$20.88B	46.12	18.53%	0.16%	9.51%	16.03%
LHX	70 Neutral	$55.51B	31.87	9.13%	1.61%	2.83%	47.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

HEICO Corporate Events

HEICO Appoints Nanda Kumar Cheruvatath as Independent Director

On December 18, 2025, HEICO Corporation’s board appointed veteran aerospace and automotive executive Nanda Kumar Cheruvatath, 64, as an independent director, effective December 24, 2025, and named him to the Environmental, Safety and Health Committee effective December 23, 2025. Cheruvatath, a former President of Eaton’s Aerospace Group with more than three decades at Eaton and a track record in leading major acquisitions and long-term growth strategies for next‑generation aerospace platforms, brings deep operational and strategic experience that is expected to strengthen HEICO’s governance and support its growth and environmental, safety and health oversight following his retirement from Eaton in April 2024.

HEICO Announces Leadership Transition After Chairman’s Passing

HEICO Corporation announced the passing of its Executive Chairman, Laurans A. Mendelson, on September 27, 2025, at the age of 87. In line with the company’s succession plans, Eric A. Mendelson and Victor H. Mendelson have been appointed as Co-Chairmen of the Board of Directors while continuing as Co-Chief Executive Officers. The company does not foresee any changes to its operations following this transition. Under Laurans Mendelson’s leadership since 1990, HEICO transformed from a small aviation products company into a leading global aerospace and defense firm with a market capitalization of approximately $39 billion and significant revenue growth. His contributions also extended to real estate development in Miami, significantly impacting the city’s skyline and economy.