HEICO (HEI) AI Stock Analysis

• Market Cap: $38.54B
• Dividend Yield: 0.07%
• Average Volume (3M): 419.43K
• Price to Earnings (P/E): 74.4
• Beta (1Y): 0.75
• Revenue Growth: 17.74%
• EPS Growth: 34.81%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): 1.12
• Shares Outstanding: 55,048,775
• 10 Day Avg. Volume: 370,122
• 30 Day Avg. Volume: 419,425
• PEG Ratio: 12.71
• Price to Book (P/B): 11.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 51.10
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 25.19
• Enterprise Value/Ebitda: 10.25
• 1Y Price Target: $315.73
• Price Target Upside: -1.65% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 79 Outperform
• Price Target: $348.00 ▲(8.40%Upside)

HEICO's overall stock score reflects its strong financial performance and positive earnings call results, indicating a well-managed company with efficient operations and strategic growth. However, the high valuation metrics and technical indicators suggest caution due to potential overvaluation and near-term price pressures.

Positive Factors

Financial Performance

HEICO's EPS of $1.12 exceeded expectations, driven by strong revenue and operating performance at Flight Support Group.

Market Position

The company's value proposition as a 'complete supplier' and cost-savings generator is seen as a winning strategy to attract new customers and sustain demand from existing ones.

Organic Growth

HEI continues to see strong organic growth as the in-service fleet remains structurally older and HEI offers a reprieve from price creep at OEMs.

Negative Factors

Debt Management

Net leverage for the company of 1.86 times is below the 2.0-times target, which leaves ample room for M&A activity.

Defense Exposure

HEI is well-positioned to meet demand if the Department of Defense opens the procurement aperture for alternative lower cost parts.

Valuation Concerns

Reiterate Equal-weight rating as growth and current valuation are balanced.

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 makes money through its two main business segments. The Flight Support Group generates revenue by providing aftermarket parts and repair services for commercial and military aircraft, which include FAA-approved parts and repair agreements with airlines and defense departments. The Electronic Technologies Group contributes to revenue by designing and manufacturing technologically advanced electronic components and systems used in various high-reliability applications. HEICO also benefits from strategic partnerships and long-term agreements with major aerospace and defense companies, which help secure consistent revenue streams and market position.

HEICO Financial Statement Overview

Summary

HEICO demonstrates strong financial performance with consistent revenue growth, robust profitability, and efficient cash flow management. The company maintains a solid balance sheet with moderate leverage and strong equity positioning, ensuring financial stability. These factors contribute to HEICO's favorable standing in the Aerospace & Defense industry.

Income Statement

HEICO shows strong financial performance with consistent revenue growth and profitability. The TTM period reveals a Gross Profit Margin of 39.34% and a Net Profit Margin of 14.54%, indicating effective cost management and strong net income generation. Revenue growth from 2024 to TTM is 7.16%, continuing a positive trend from previous years. EBIT and EBITDA margins are robust at 22.01% and 25.44%, respectively, reflecting operational efficiency.

Balance Sheet

HEICO maintains a solid balance sheet with a Debt-to-Equity Ratio of 0.57, indicating moderate leverage. The Equity Ratio stands at 49.02%, demonstrating a strong equity position in relation to total assets. Return on Equity (ROE) is healthy at 15.15%, showing effective use of equity to generate profits. The company has increased its asset base significantly over the years while maintaining a balanced liability structure.

Cash Flow

HEICO's cash flow position is strong, with a significant increase in Free Cash Flow in the TTM period to $762 million, representing a growth rate of 24.09% compared to 2024. The Operating Cash Flow to Net Income Ratio is 1.38, indicating efficient cash generation relative to net income. The Free Cash Flow to Net Income Ratio of 1.27 further underscores the company's ability to convert income into cash effectively.

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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 321.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 321.04 is above the 20-day moving average (MA) of 319.33, above the 50-day MA of 299.38, and above the 200-day MA of 263.36, indicating a bullish trend. The MACD of 5.40 indicates Positive momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 54.62 is Neutral, 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
HEI	79 Outperform	$38.54B	74.37	16.34%	0.07%	17.74%	34.81%
WWD	77 Outperform	$15.09B	41.59	16.35%	0.44%	4.96%	8.41%
LHX	76 Outperform	$48.82B	30.95	8.49%	1.82%	5.39%	36.86%
TXT	75 Outperform	$15.25B	19.12	11.70%	0.09%	0.57%	-5.62%
CW	74 Outperform	$18.16B	43.06	17.40%	0.20%	9.77%	15.66%
MOG.A	73 Outperform	$5.93B	29.91	11.61%	0.62%	4.50%	9.90%
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%

HEICO Corporate Events

HEICO Announces Leadership Transition Effective May 2025

On April 18, 2025, HEICO Corporation’s Board of Directors approved leadership transitions, effective May 1, 2025, as part of its long-standing internal succession planning. Laurans A. Mendelson will transition from Chairman and CEO to Executive Chairman, while Eric A. Mendelson and Victor H. Mendelson will become Co-Chief Executive Officers. This change aligns with the company’s strategic direction and reflects the roles the Mendelsons have played over the years. The transition is largely titular, as the Mendelsons have collaboratively managed HEICO since 1990, significantly growing the company from a struggling entity to a major player in the aerospace and defense industry with a market capitalization nearing $30 billion.