HEICO (HEI) AI Stock Analysis

• Market Cap: $34.55B
• Dividend Yield: 0.07%
• Average Volume (3M): 715.13K
• Price to Earnings (P/E): 60.6
• Beta (1Y): 0.81
• 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: 692,991
• 30 Day Avg. Volume: 715,127
• 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: 1.23
• Enterprise Value/Revenue: 9.15
• Enterprise Value/Gross Profit: 22.74
• Enterprise Value/Ebitda: 33.72
• 1Y Price Target: $381.82
• Price Target Upside: 32.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 5.59
• Revenue Forecast (FY): $5.06B

• Rating: 66 Neutral
• Price Target: $315.00 ▲(9.25% Upside)
• Action: Downgraded Date: 03/17/26
• Date: Action: Downgraded 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.

Flight Support Group durability

The Flight Support Group’s sizable, high-margin aftermarket franchise and double-digit organic growth reflect durable demand from aging fleets and increased air travel. Strong FSG margins and cash EBITA resilience underpin corporate profitability and reduce earnings cyclicality over multiple quarters.

Accretive M&A pipeline & backlog

A disciplined, accretive M&A strategy plus a record ETG backlog expand product breadth and customer access, driving sustainable revenue and scale benefits. When executed with strong cash conversion, this supports structural growth and margin recovery over the medium term.

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.

Acquisition-related amortization drag

Frequent acquisitions generate meaningful intangible amortization that depresses reported GAAP margins and EPS. Even if cash economics are accretive, persistent amortization can reduce headline profitability and complicate investor assessment of underlying operating performance over many reporting periods.

Near-term leverage and FCF variability

Leverage rising to ~1.8x from deal activity, coupled with some volatility in free cash flow and operating cash impacts from LCP distributions, narrows financial flexibility. Elevated leverage can constrain future M&A firepower or capital returns if cash flow weakens or acquisition pace continues.

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, solid profitability, and high-quality cash generation (operating cash flow consistently exceeding net income; strong free-cash-flow conversion). Key watch items are the TTM margin step-down versus the most recent annual period and some volatility in free cash flow growth; leverage has improved versus 2023–2024 but should be monitored given recent variability.

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: 288.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 288.33 is below the 20-day moving average (MA) of 316.64, below the 50-day MA of 329.82, and below the 200-day MA of 319.60, indicating a bearish trend. The MACD of -11.62 indicates Positive momentum. The RSI at 32.31 is Neutral, neither overbought nor oversold. The STOCH value of 14.55 is Positive, 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	$21.89B	33.82	19.63%	0.35%	7.30%	19.54%
LHX	75 Outperform	$68.80B	47.45	8.28%	1.61%	2.83%	47.00%
CW	72 Outperform	$25.47B	42.60	18.74%	0.16%	9.51%	16.03%
TXT	68 Neutral	$15.51B	17.04	12.25%	0.09%	1.83%	-0.73%
HEI	66 Neutral	$34.55B	60.62	16.85%	0.07%	16.26%	33.72%
BWXT	64 Neutral	$19.11B	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 Shareholders Reelect Board and Approve Executive Pay

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 nine director nominees were elected to serve until the next annual meeting, including board members who received significantly higher support than others, confirming continuity in the company’s leadership and governance structure.

Shareholders also approved, on an advisory basis, the company’s executive compensation program, signaling broad investor support for management’s pay practices, while a meaningful minority voted against. In addition, investors ratified Deloitte & Touche LLP as HEICO’s independent registered public accounting firm for the fiscal year ending October 31, 2026, reinforcing confidence in the company’s financial reporting and audit oversight for the coming year.

The most recent analyst rating on (HEI) stock is a Buy with a $400.00 price target. To see the full list of analyst forecasts on HEICO stock, see the HEI Stock Forecast page.

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.