Heico Corp. (HEI)
NYSE:HEI
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HEICO
(NYSE:HEI)
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Rating:66Neutral
Price Target:
$315.00
â–²(13.81% Upside)
Action:DowngradedDate:03/17/26
HEI scores well on underlying financial quality (growth, profitability, and cash conversion) and a constructive earnings outlook, but the overall score is pulled down by weak technicals (below key moving averages with negative MACD) and a demanding valuation (high P/E with minimal dividend support).
Positive Factors
High-quality cash generation
Consistently strong operating cash flow and high FCF conversion provide durable internal funding for capex, dividends, and M&A. This reduces reliance on external financing, supports accretive deal execution, and gives management flexibility to allocate capital across cycles over the next several quarters.
Negative Factors
ETG margin pressure
ETG’s margin compression from unfavorable product mix and lower space shipments highlights structural volatility in that end market. If mix shifts or space revenue timing persist, ETG margins may remain depressed for multiple quarters, limiting consolidated margin expansion despite top-line growth.
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Positive Factors
Negative Factors
High-quality cash generation
Consistently strong operating cash flow and high FCF conversion provide durable internal funding for capex, dividends, and M&A. This reduces reliance on external financing, supports accretive deal execution, and gives management flexibility to allocate capital across cycles over the next several quarters.
Read all positive factors
HEICO (HEI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.28B
Dividend Yield0.07%
Average Volume (3M)774.88K
Price to Earnings (P/E)60.6
Beta (1Y)0.79
Revenue Growth16.26%
EPS Growth33.72%
CountryUS
Employees10,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.35
Shares Outstanding55,148,525
10 Day Avg. Volume600,264
30 Day Avg. Volume774,880
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 Cap1.22
Enterprise Value/Revenue8.76
Enterprise Value/Gross Profit21.76
Enterprise Value/Ebitda32.27
Forecast
1Y Price Target
$366.70Price Target Upside32.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)5.6
Revenue Forecast (FY)$5.06B
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...
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 airc...
HEICO Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The call highlighted multiple clear operating and financial strengths: record net income and EPS, double-digit revenue and EBITDA growth, strong FSG performance, a record ETG backlog, robust cash generation and an active pipeline of accretive acquisitions. Offsetting items included meaningful ETG margin compression driven by shipment/mix timing, acquisition-related amortization that reduced GAAP margins, a near-term rise in leverage to 1.79x from deal activity, and some supply-cost/headwind noise. Management characterized the margin weakness as temporary, emphasized disciplined M&A and a solid balance sheet, and reiterated confidence in improving ETG margins later in the year. On balance, positive operational momentum, healthy cash generation and disciplined capital allocation outweigh the transitory and accounting-related headwinds.Positive Updates
Record Net Income and EPS
Consolidated net income rose 13% to a record $190.2M ($1.35 diluted EPS) in Q1 FY'26 vs $168.0M ($1.20) in Q1 FY'25; results benefited from a discrete stock-option related tax benefit of $21.8M ($0.15/share).
Negative Updates
ETG Operating Income and Margin Compression
ETG operating income declined to $73.2M from $76.5M year-over-year and operating margin fell to 19.8% from 23.1%, principally due to an unfavorable product mix and decreased space product shipments; management characterizes this as shipment/mix timing but it materially pressured quarterly margins.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Net Income and EPS
Consolidated net income rose 13% to a record $190.2M ($1.35 diluted EPS) in Q1 FY'26 vs $168.0M ($1.20) in Q1 FY'25; results benefited from a discrete stock-option related tax benefit of $21.8M ($0.15/share).
Read all positive updates
Company Guidance
Management guided to continued sales momentum and organic growth in FY‑26 driven by both segments — citing Flight Support’s Q1 sales +15% to $820M, operating income +21% to $200.7M, operating margin 24.5% and cash EBITA ~27.1%, and Electronic Technologies’ Q1 sales +12% to $370.7M (organic +6%) with GAAP operating margin 19.8% that management expects to improve into the second half; they reiterated a full‑year ETG GAAP margin target of roughly 22–24% (about 26–28% before acquisition‑related amortization). They said recent acquisitions (e.g., Rockmart, Ethos) should be accretive within a year, emphasized strong cash generation (Q1 operating cash flow $178.6M, consolidated EBITDA +14% to $312M, net income +13% to $190.2M or $1.35/diluted share), noted net debt/EBITDA of 1.79x and continued M&A activity, confirmed the $0.12 semiannual dividend, and reminded investors of a remaining LCP distribution of ~ $73M that is net cash neutral.HEICO Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
77
Positive
Cash Flow
82
Very Positive
| 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
Negative
276.77
Price Trends
311.71
Negative
318.64
Negative
317.96
Negative
Market Momentum
-12.02
Negative
39.12
Neutral
55.50
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 276.77 is below the 20-day moving average (MA) of 283.75, below the 50-day MA of 311.71, and below the 200-day MA of 317.96, indicating a bearish trend. The MACD of -12.02 indicates Negative momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 55.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HEI.
HEICO Risk Analysis
HEICO disclosed 20 risk factors in its most recent earnings report. HEICO 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 Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.59B | 33.82 | 19.63% | 0.35% | 7.30% | 19.54% | |
75 Outperform | $67.00B | 47.45 | 8.28% | 1.61% | 2.83% | 47.00% | |
72 Outperform | $25.78B | 42.60 | 18.74% | 0.16% | 9.51% | 16.03% | |
68 Neutral | $15.41B | 17.04 | 12.25% | 0.09% | 1.83% | -0.73% | |
66 Neutral | $33.28B | 60.62 | 16.85% | 0.07% | 16.26% | 33.72% | |
64 Neutral | $19.75B | 47.98 | 27.65% | 0.56% | 14.01% | 10.92% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HEI
HEICO
276.77
38.07
15.95%
CW
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699.12
406.89
139.24%
LHX
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358.73
161.36
81.76%
TXT
Textron
88.54
27.67
45.45%
WWD
Woodward
378.88
221.93
141.40%
BWXT
BWX Technologies
215.98
123.42
133.33%
HEICO Corporate Events
Executive/Board ChangesShareholder Meetings
HEICO Shareholders Reelect Board and Approve Executive Pay
Positive
Mar 17, 2026
On March 13, 2026, HEICO Corporation shareholders held their annual meeting, at which holders of Common Stock and Class A Common Stock voted on the election of directors, executive compensation, and the appointment of the independent auditor. All ...
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.