HEICO (HEI) AI Stock Analysis

• Market Cap: $37.12B
• Dividend Yield: 0.07%
• Average Volume (3M): 382.46K
• Price to Earnings (P/E): 67.3
• 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: 55,053,673
• 10 Day Avg. Volume: 462,512
• 30 Day Avg. Volume: 382,457
• PEG Ratio: 1.88
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 9.85
• P/FCF Ratio: 51.30
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 11.11
• Enterprise Value/Gross Profit: 26.78
• Enterprise Value/Ebitda: 41.37
• 1Y Price Target: $343.33
• Price Target Upside: 5.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $374.00 ▲(14.49% Upside)

HEICO's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust growth, strategic acquisitions, and effective cash flow management contribute to a solid outlook. However, the high valuation and low dividend yield slightly temper the overall score.

Positive Factors

Revenue Growth

HEICO's consistent revenue growth, surpassing expectations, indicates strong market demand and effective sales strategies, supporting long-term expansion.

Cash Flow Generation

Robust cash flow growth enhances HEICO's ability to fund operations and strategic initiatives, ensuring financial flexibility and sustainability.

Strategic Acquisitions

Strategic acquisitions like Gables Engineering expand HEICO's capabilities and market reach, contributing to long-term earnings growth and competitive positioning.

Negative Factors

Supply Chain Challenges

Persistent supply chain issues could impact production efficiency and cost management, potentially affecting HEICO's profitability and operational stability.

Increased Compensation Expenses

Rising compensation expenses may pressure margins, reducing profitability and potentially limiting reinvestment in growth initiatives.

Leadership Transition

Leadership changes could introduce strategic shifts or operational disruptions, affecting HEICO's long-term strategic direction and execution.

HEICO Business Overview & Revenue Model

Company Description

HEICO Corporation (NYSE: HEI) is a diversified aerospace and electronics company that designs, manufactures, and sells a variety of products and services primarily for the aviation, defense, space, and electronics industries. The company operates through two main segments: the Flight Support Group and the Electronic Technologies Group. HEICO's core offerings include aircraft replacement parts, repair services, and specialized electronic components, which are designed to enhance safety, efficiency, and performance in aerospace applications.

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 exhibits strong profitability with robust margins and consistent revenue growth. The balance sheet is solid with minimal leverage, and cash flow generation is healthy. Overall, the financial profile is strong, supporting continued growth with minimal risks.

Income Statement

HEICO's income statement shows strong profitability with a consistent increase in revenue over the years. The TTM data indicates a gross profit margin of 41.48% and a net profit margin of 14.96%, reflecting efficient cost management and strong bottom-line performance. Revenue growth rate of 3.76% in the TTM period suggests steady expansion. EBIT and EBITDA margins are robust at 22.44% and 25.66%, respectively, indicating healthy operational efficiency.

Balance Sheet

The balance sheet reveals a solid financial position with a very low debt-to-equity ratio of 0.0009 in the TTM period, highlighting minimal leverage risk. Return on equity is strong at 16.57%, showcasing effective use of equity to generate profits. The equity ratio stands at 48.54%, indicating a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

HEICO's cash flow statement demonstrates strong cash generation capabilities. The free cash flow growth rate of 2.67% in the TTM period indicates positive cash flow trends. The operating cash flow to net income ratio of 1.19 and free cash flow to net income ratio of 0.93 suggest efficient conversion of income into cash, supporting liquidity and potential for reinvestment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.29B	4.49B	3.86B	2.97B	2.21B	1.87B
Gross Profit	1.78B	1.79B	1.61B	1.25B	938.82M	796.30M
EBITDA	1.15B	1.22B	1.00B	756.77M	592.71M	486.24M
Net Income	641.78M	690.38M	514.11M	403.60M	351.68M	304.22M
Balance Sheet
Total Assets	8.53B	8.50B	7.59B	7.20B	4.10B	3.50B
Cash, Cash Equivalents and Short-Term Investments	261.89M	217.78M	162.10M	171.05M	139.50M	108.30M
Total Debt	2.45B	2.17B	2.25B	2.50B	304.93M	250.37M
Total Liabilities	3.88B	3.65B	3.90B	4.00B	1.12B	948.88M
Stockholders Equity	4.14B	4.38B	3.64B	3.15B	2.61B	2.26B
Cash Flow
Free Cash Flow	782.44M	861.38M	614.11M	399.30M	435.87M	407.90M
Operating Cash Flow	844.56M	934.27M	672.37M	448.74M	467.86M	444.08M
Investing Cash Flow	-878.74M	-731.69M	-293.20M	-2.48B	-395.83M	-183.45M
Financing Cash Flow	89.90M	-150.68M	-389.39M	2.07B	-33.83M	-558.97M

HEICO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 326.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 326.67 is above the 20-day moving average (MA) of 311.53, above the 50-day MA of 313.26, and above the 200-day MA of 299.30, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.54 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
WWD	79 Outperform	$17.23B	40.02	18.64%	0.37%	7.30%	19.54%
HEI	79 Outperform	$37.12B	67.26	17.22%	0.07%	16.26%	33.72%
BWXT	75 Outperform	$15.37B	50.28	26.69%	0.59%	14.01%	10.92%
TXT	75 Outperform	$15.41B	19.23	11.46%	0.09%	1.83%	-0.73%
CW	74 Outperform	$19.68B	43.47	18.53%	0.17%	9.51%	16.03%
LHX	70 Neutral	$52.14B	29.93	9.13%	1.70%	2.83%	47.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

HEICO Corporate Events

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.