HEICO (HEI) AI Stock Analysis

• Market Cap: $34.81B
• Dividend Yield: 0.07%
• Average Volume (3M): 693.91K
• Price to Earnings (P/E): 60.6
• Beta (1Y): 0.79
• Revenue Growth: 16.26%
• EPS Growth: 33.72%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.35
• Shares Outstanding: 55,148,525
• 10 Day Avg. Volume: 1,159,602
• 30 Day Avg. Volume: 693,915
• PEG Ratio: 1.88
• Price to Book (P/B): 10.26
• Price to Sales (P/S): 9.85
• P/FCF Ratio: 51.30
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 9.20
• Enterprise Value/Gross Profit: 22.85
• Enterprise Value/Ebitda: 33.88
• 1Y Price Target: $381.67
• Price Target Upside: 31.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 5.59
• Revenue Forecast (FY): $5.06B

• Rating: 74 Outperform
• Price Target: $386.00 ▲(33.10% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial performance (growth, profitability, and cash conversion) and a supportive uptrend in the shares. These positives are tempered by a premium valuation and some near-term margin/leverage headwinds discussed on the latest earnings call.

Positive Factors

Sustained revenue & profit growth

HEICO has delivered multi-year top-line expansion and durable mid-teens net margins, reflecting broad demand for aftermarket aerospace parts and services. Persistent organic growth plus acquisitions indicate a diversified revenue base that supports predictable earnings over the medium term.

High-quality cash generation

Operating cash flow sustainably outpacing net income and strong free-cash-flow conversion underpin funding for disciplined M&A, dividends and capex without excessive financing. Reliable cash conversion supports long-term capital allocation and resilience through cycles.

Flight Support strength & ETG backlog

High-margin Flight Support organic growth and a record ETG backlog provide structural revenue visibility and margin leverage. FSG’s aftermarket focus and ETG order book bolster multi-segment resilience and support margin recovery as ETG shipment mix normalizes.

Negative Factors

ETG margin compression & mix volatility

ETG’s margins are exposed to product mix and shipment timing, especially in space products, producing quarter-to-quarter swings. This structural unevenness can mute consolidated margin expansion and make medium-term profitability less predictable until mix and shipment cadence stabilize.

Acquisition-related amortization and stock comp drag

Ongoing M&A yields amortization that persistently depresses GAAP margins and reported profitability, while elevated stock-based compensation raises operating expenses. Together these accounting and compensation effects can obscure cash profitability and keep GAAP margins depressed for several quarters.

Near-term leverage uptick from M&A

Leverage increased with acquisition activity, tightening financial flexibility versus prior years. Although still moderate (<2x), higher leverage raises refinancing and covenant risk and limits optionality for large investments until cash flows and deleveraging normalize.

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

Strong multi-year revenue growth, durable profitability, and high-quality cash generation (operating cash flow consistently exceeding net income with solid free-cash-flow conversion). Key watch items are the TTM margin step-down versus the latest annual period, some volatility in free cash flow growth, and prior-period leverage (even though leverage improved and returns on equity are rising).

Income Statement

HEICO shows strong and consistent top-line expansion (annual revenue growth of ~18%–34% from 2022–2024, plus ~3% in TTM (Trailing-Twelve-Months)). Profitability remains solid with net margins generally in the mid-teens and TTM net margin at ~15.4%. A key watch item is margin compression in TTM versus the most recent annual period (gross margin ~30% in TTM vs ~40% annual; operating margin also lower), suggesting mix, pricing, or cost headwinds despite continued earnings growth.

Balance Sheet

Balance sheet quality appears improved versus prior years: leverage moved from relatively high levels in 2023–2024 (debt-to-equity ~0.62–0.79) to a more moderate level in 2025 (~0.51). Returns on equity are healthy and trending upward (about ~12.8% in 2023 to ~17.1% in TTM), indicating efficient capital use. However, debt levels were meaningful in recent annual periods, and the TTM showing zero total debt is a large step-change versus history and should be monitored for consistency across future reports.

Cash Flow

Cash generation is strong and high quality: operating cash flow exceeds net income in recent periods (about ~1.12x in 2024–2025 and TTM), and free cash flow conversion is consistently high (roughly ~0.89–0.93 of net income across periods, ~0.92 in TTM). Free cash flow growth is somewhat volatile, including a small decline in TTM (about -2.4%) after growth in 2024–2025, which slightly tempers the outlook but does not undermine overall cash-flow strength.

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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 290.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEI, the sentiment is Negative. The current price of 290 is below the 20-day moving average (MA) of 327.26, below the 50-day MA of 333.85, and below the 200-day MA of 319.52, indicating a bearish trend. The MACD of -7.27 indicates Positive momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 23.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HEI.

HEICO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WWD	77 Outperform	$21.57B	33.82	19.63%	0.35%	7.30%	19.54%
LHX	75 Outperform	$66.84B	47.45	8.28%	1.61%	2.83%	47.00%
HEI	74 Outperform	$34.81B	60.62	16.85%	0.07%	16.26%	33.72%
CW	72 Outperform	$25.08B	37.15	18.74%	0.16%	9.51%	16.03%
TXT	68 Neutral	$15.94B	17.04	12.25%	0.09%	1.83%	-0.73%
BWXT	64 Neutral	$18.09B	47.98	27.65%	0.56%	14.01%	10.92%
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.

The most recent analyst rating on (HEI) stock is a Hold with a $371.00 price target. To see the full list of analyst forecasts on HEICO stock, see the HEI Stock Forecast page.