Heico Cp Cl A (HEI.A) AI Stock Analysis

Heico Cp Cl A

(NYSE:HEI.A)

Select Model

Rating:70Outperform

Price Target:$247.00▲(3.47% Upside)

Action:reiterated

Date:08/27/26

Heico's overall score of 70 reflects a company with elite financial health and strong operational momentum, weighed down by a very demanding valuation. The stellar financial performance and positive earnings call highlight a business firing on all cylinders, with a fortress balance sheet and exceptional cash flow. However, the high P/E ratio introduces substantial risk, and the technical analysis suggests the stock is currently under selling pressure. The company's fundamental quality is undeniable, but the current price already reflects much of this optimism.

Positive Factors

Diversified Niche Aerospace PlatformHEICO combines an aircraft aftermarket business with specialized electronics and defense products, creating diversified exposure across high-reliability markets. FAA-approved replacement parts, repair services and niche subsystems can support durable demand as aircraft fleets, defense programs and space applications require ongoing investment.

Negative Factors

Supply-Chain ConstraintsPersistent shortages of raw materials and subcomponents can limit HEICO’s ability to convert repair demand and backlog into revenue on schedule. If constraints continue, they may delay customer fulfillment, reduce near-term operating efficiency and make growth more dependent on eventual supply normalization.

Heico Cp Cl A (HEI.A) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $44.60B
Dividend Yield: 0.10%
Average Volume (3M): 297.76K
Price to Earnings (P/E): 52.9
Beta (1Y): 0.90
Revenue Growth: 20.69%
EPS Growth: 31.56%
Country: US
Employees: 11,100
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

Heico Cp Cl A Business Overview & Revenue Model

Company Description

HEICO Corporation operates as a diversified enterprise, involved in the design, manufacturing, and global distribution of specialized products and services primarily for the aerospace, defense, and electronics sectors. Its activities span both domest...

How the Company Makes Money

HEICO makes money primarily by selling engineered products and related services through its two operating segments. (1) Flight Support Group (FSG): Revenue is generated from the sale of FAA-approved replacement parts (often used as lower-cost alterna...

Heico Cp Cl A Earnings Call Summary

Earnings Call Date:Aug 24, 2026(Q3-2026)|% Change Since:-7.15%|Next Earnings Date:Dec 20, 2026

Earnings Call SentimentPositive

The call conveyed a strongly positive operational and financial performance: record revenues, operating income, EBITDA and cash flow, broad-based organic growth (notably ETG +18% organic), margin expansion on a cash basis, strengthened liquidity and an active, accretive M&A pipeline. Headwinds are mostly operational (supply-chain parts shortages impacting component repairs), acquisition-related amortization pressuring GAAP margins, a one-time estate cash outflow ($70–$75M) that will reduce Q4 operating cash, and elevated valuations affecting deal pricing. On balance, the positives (record results, strong cash, robust backlog and disciplined capital strategy) materially outweigh the challenges.

Positive Updates

Record Consolidated Results

Consolidated net sales rose 23% YoY to a record $1,413.1M; consolidated operating income increased 34% YoY to a record $355.2M; consolidated net income increased 33% YoY to a record $235.4M ($1.67 per diluted share).

Negative Updates

Supply Chain and Parts Shortages

Ongoing supply chain bottlenecks and longer lead times for certain raw materials and subcomponents continue to constrain component repair throughput and cause backlog/fulfillment challenges; some improvement in legacy issues but new constraints have emerged.

Company Guidance

Management guided that for the remainder of fiscal 2026 they expect increased net sales at both the Flight Support Group and Electronic Technologies Group, driven by strong underlying demand and recent acquisitions (Cook Defence, CalRamic), which they expect to be accretive within one year; they reiterated a longer‑term goal to grow net income ~15–20% annually. Segment margin guidance for ETG was 22–24% GAAP (roughly 26–28% EBITDA) for the period, and consolidated metrics shown this quarter included consolidated EBITDA of $415.2M, operating cash flow of $345.3M (≈150% of net income), and Q3 net debt/EBITDA of 1.57x. On capital allocation and liquidity, they issued $1.2B of senior unsecured notes, extended the revolver to June 2031 and increased committed capacity to $2.2B (with an $800M accordion to $3B), paid a $0.13/share semiannual dividend (up 8%), expect strong free‑cash conversion (≈70%) for the year, but flagged a $70–75M operating cash outflow in Q4 related to an estate payment; CapEx was described around ~1.5% of sales (could rise toward ~2%).

Heico Cp Cl A Financial Statement Overview

Summary

Heico's financials are exceptional. The income statement shows robust, profitable growth with expanding net margins. The balance sheet is a fortress, having achieved a zero-debt position with rapidly growing equity and high returns on equity. Cash flow generation is elite, converting nearly all net income into free cash flow. The only minor caution is a slight gross margin compression, but this is overshadowed by overall financial strength.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

90Very Positive

Financial statement breakdown
Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	5.18B	4.49B	3.86B	2.97B	2.21B	1.87B
Gross Profit	2.09B	1.79B	1.61B	1.25B	938.82M	796.30M
EBITDA	1.47B	1.22B	1.00B	758.31M	593.74M	487.36M
Net Income	847.72M	690.38M	514.11M	403.60M	351.68M	304.22M
Balance Sheet
Total Assets	9.94B	8.50B	7.59B	7.20B	4.10B	3.50B
Cash, Cash Equivalents and Short-Term Investments	240.96M	217.78M	162.10M	171.05M	139.50M	108.30M
Total Debt	2.54B	2.19B	2.25B	2.50B	304.93M	250.37M
Total Liabilities	4.29B	4.12B	3.90B	4.00B	1.12B	948.88M
Stockholders Equity	4.95B	4.31B	3.64B	3.15B	2.61B	2.26B
Cash Flow
Free Cash Flow	1.03B	861.38M	614.11M	399.30M	435.87M	407.90M
Operating Cash Flow	1.11B	934.27M	672.37M	448.74M	467.86M	444.08M
Investing Cash Flow	-1.11B	-731.69M	-293.20M	-2.48B	-395.83M	-183.45M
Financing Cash Flow	-25.92M	-150.68M	-389.39M	2.07B	-33.83M	-558.97M

Heico Cp Cl A Technical Analysis

Technical Analysis SentimentPositive

Last Price238.72

Price Trends

50DMA233.30Positive

100DMA244.76Negative

200DMA238.68Positive

Market Momentum

MACD1.51Negative

RSI57.35Neutral

STOCH80.90Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEI.A, the sentiment is Positive. The current price of 238.72 is above the 20-day moving average (MA) of 229.05, above the 50-day MA of 233.30, and above the 200-day MA of 238.68, indicating a bullish trend. The MACD of 1.51 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 80.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HEI.A.

Heico Cp Cl A Risk Analysis

Heico Cp Cl A disclosed 20 risk factors in its most recent earnings report. Heico Cp Cl A reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Heico Cp Cl A Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HEI.A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	80Outperform	$11.10B	29.44	18.00%	0.34%	15.65%	78.52%
HONA	78Outperform	$48.87B	25.73	-221.47%	―	8.36%	-32.92%
CW	72Outperform	$17.58B	32.58	20.69%	0.21%	10.54%	22.56%
WWD	71Outperform	$17.99B	32.94	21.75%	0.41%	22.35%	41.77%
HEI.A	70Outperform	$37.93B	52.85	18.30%	0.10%	20.69%	31.56%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TDG	58Neutral	$63.39B	34.79	-22.31%	―	16.64%	9.48%

* Industrials Sector Average

Performance Comparison

HEI.A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HEI.A	Heico Cp Cl	238.72	-6.97	-2.84%
CW	Curtiss-Wright Corp	476.01	-124.81	-20.77%
MOG.A	Moog Inc.	350.67	145.04	70.53%
TDG	Transdigm	1146.81	-153.19	-11.78%
WWD	Woodward	304.65	43.92	16.85%
HONA	Honeywell Aerospace Inc	154.15	-45.85	-22.92%

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.

Date of analysis: Aug 27, 2026

Heico Cp Cl A AI Stock Analysis