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Heico Cp Cl A
(NYSE:HEI.A)
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Rating:74Outperform
Price Target:
$286.00
▲(14.37% Upside)
Action:Reiterated
Date:08/27/26
The score is driven primarily by strong underlying financial performance and a very constructive earnings call (record results, strong cash generation, and upbeat sales outlook). These positives are partly offset by a weak/mixed technical setup (below short-term moving averages) and a rich valuation (high P/E with minimal dividend yield).
Positive Factors
Broad-Based Revenue Growth
Growth is diversified across flight support and electronic technologies, with both segments delivering strong organic expansion. This reduces reliance on one end market and supports sustained revenue momentum across commercial aerospace, defense, space and industrial applications.
Negative Factors
Supply-Chain Constraints
Persistent shortages of raw materials and subcomponents can delay deliveries, limit repair capacity and defer revenue recognition. If constraints endure, they may prevent HEICO from fully converting its backlog and could raise costs across affected operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-Based Revenue Growth
Growth is diversified across flight support and electronic technologies, with both segments delivering strong organic expansion. This reduces reliance on one end market and supports sustained revenue momentum across commercial aerospace, defense, space and industrial applications.
Read all positive factors
Heico Cp Cl A (HEI.A) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.11B
Dividend Yield0.1%
Average Volume (3M)248.28K
Price to Earnings (P/E)53.6
Beta (1Y)0.92
Revenue Growth20.69%
EPS Growth31.56%
CountryUS
Employees11,100
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)6.08
Shares Outstanding84,515,755
10 Day Avg. Volume285,971
30 Day Avg. Volume248,275
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.28
Revenue Forecast (FY)$5.38B
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 dom...
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 streams:
- Aftermarket aircraft and engine replacement parts: A significant portion of FSG r...
Heico Cp Cl A Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 21, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q3-2026 Updates
Positive
Negative
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).
Read all positive updates
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
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
90
Very Positive
| 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 | 756.77M | 592.71M | 486.24M |
| 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
Negative
250.06
Price Trends
256.99
Negative
242.46
Negative
243.14
Negative
Market Momentum
-4.59
Positive
28.94
Positive
4.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEI.A, the sentiment is Negative. The current price of 250.06 is below the 20-day moving average (MA) of 258.85, below the 50-day MA of 256.99, and above the 200-day MA of 243.14, indicating a bearish trend. The MACD of -4.59 indicates Positive momentum. The RSI at 28.94 is Positive, neither overbought nor oversold. The STOCH value of 4.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Heico Cp Cl A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.59B | 31.08 | 18.00% | 0.29% | 15.65% | 78.52% | |
74 Outperform | $38.11B | 53.57 | 18.30% | 0.10% | 20.69% | 31.56% | |
72 Outperform | $20.74B | 38.93 | 20.69% | 0.13% | 10.54% | 22.56% | |
67 Neutral | $19.81B | 37.03 | 21.75% | 0.29% | 22.35% | 41.77% | |
66 Neutral | $63.78B | 35.13 | -21.02% | ― | 16.64% | 9.48% | |
64 Neutral | $48.35B | 65.38 | -16.21% | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
HEI.A
Heico Cp Cl A
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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.