HEICO (HEI) AI Stock Analysis

• Market Cap: $40.36B
• Dividend Yield: 0.07%
• Average Volume (3M): 397.73K
• Price to Earnings (P/E): 66.9
• Beta (1Y): 0.72
• Revenue Growth: 13.46%
• EPS Growth: 33.75%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 79
• Industry: Aerospace & Defense
• EPS (TTM): 1.26
• Shares Outstanding: 55,048,775
• 10 Day Avg. Volume: 423,511
• 30 Day Avg. Volume: 397,730
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 11.78
• Enterprise Value/Gross Profit: 27.96
• Enterprise Value/Ebitda: 44.38
• 1Y Price Target: $347.86
• Price Target Upside: 4.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 81 Outperform
• Price Target: $384.00 ▲(15.61% Upside)

HEICO's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. The technical indicators suggest a positive trend, though caution is advised due to potential overvaluation concerns. The company's strategic acquisitions and robust cash flow further support its favorable position in the Aerospace & Defense industry.

Positive Factors

Financial Performance

HEI reported better than expected top and bottom line results for its FQ3 quarter with sales and EPS exceeding Street estimates.

Growth Prospects

HEICO Corporation's Flight Support Group (FSG) is expected to continue driving growth with an estimated 11% organic increase, contributing significantly to the company's performance.

Market Position

Heico is considered one of the most pure-play investments for the $120 billion aftermarket aerospace market.

Negative Factors

Segment Performance

Despite a year-over-year decline in the Electronic Technologies Group, investors are expected to view the overall results positively.

Valuation Concerns

HEICO's current trading valuation is significantly high at approximately 36 times EBITDA, which could lead to negative market reactions despite surpassing earnings expectations.

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 through the sale of aerospace and electronic products and services. Its primary revenue streams include the sale of replacement parts for commercial and military aircraft, which are often less expensive alternatives to original equipment manufacturer (OEM) parts, thus appealing to airlines and maintenance providers looking to reduce costs. Additionally, HEICO earns income through the provision of specialized electronic components and systems for various applications, including military and industrial uses. The company also benefits from long-term contracts and partnerships with major aerospace and defense contractors, enhancing its market position and providing a steady stream of income. Moreover, HEICO's focus on research and development allows it to innovate continually, creating new products that meet the evolving needs of its customers and thereby driving sales growth.

HEICO Financial Statement Overview

Summary

HEICO demonstrates strong financial performance with consistent revenue growth, high profitability, and efficient cash flow management. The company maintains a solid balance sheet with moderate leverage and a strong equity position. Its ability to generate cash flow supports ongoing investments and operational activities.

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	1.74B	1.61B	1.25B	938.82M	796.30M	747.69M
EBITDA	1.10B	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	304.93M	250.37M	754.01M
Total Liabilities	3.62B	3.90B	4.00B	1.12B	948.88M	1.32B
Stockholders Equity	3.97B	3.64B	3.15B	2.61B	2.26B	1.98B
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: 332.16
• 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 332.16 is above the 20-day moving average (MA) of 315.49, above the 50-day MA of 317.57, and above the 200-day MA of 271.74, indicating a bullish trend. The MACD of -1.00 indicates Negative momentum. The RSI at 63.81 is Neutral, neither overbought nor oversold. The STOCH value of 51.56 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	81 Outperform	$40.36B	66.89	16.56%	0.07%	13.46%	33.75%
LHX	78 Outperform	$51.95B	30.83	8.90%	1.70%	2.93%	43.29%
CW	77 Outperform	$18.50B	40.41	17.46%	0.18%	9.89%	16.20%
WWD	73 Outperform	$15.13B	38.92	16.76%	0.43%	5.53%	5.56%
TXT	71 Outperform	$14.50B	18.27	11.42%	0.10%	1.19%	-6.77%
BWXT	70 Outperform	$14.88B	50.88	26.97%	0.59%	10.13%	10.04%
Sector *	64 Neutral	$10.95B	16.10	8.81%	1.99%	2.59%	-16.41%

HEICO Corporate Events

HEICO Announces Passing of Board Director

HEICO Corporation announced the passing of Frank J. Schwitter, a long-serving director on its Board, on August 5, 2025. Mr. Schwitter had been a member of the Board since December 2006 and contributed to the Audit Committee, impacting the company’s governance and oversight.