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Heico Cp Cl A (HEI.A) AI Stock Analysis
Heico Cp Cl A
(NYSE:HEI.A)
Strong financial performance and positive earnings results with robust growth and cash flow are the primary drivers, partially offset by premium valuation and mixed technical signals.
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
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.
Q3-2026 Updates
Positive Updates
Negative 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
Robust revenue growth to $5.18B TTM with stable margins, improved leverage and rising equity on the balance sheet, plus excellent cash generation and high free cash flow conversion.
Income Statement
87Very PositiveBalance Sheet
79PositiveCash Flow
91Very 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 | 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
Price Trends
Market Momentum
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.
Latest Risks Added
0 New RisksHeico Cp Cl A Peers Comparison
Overall Rating
MOG.A80Outperform
HONA78Outperform- HEI.A74Outperform
CW72Outperform
WWD71Outperform
TDG58Neutral
Financial Indicators
| 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% |
| HEI.A | 74Outperform | $37.93B | 52.85 | 18.30% | 0.10% | 20.69% | 31.56% |
| 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% |
| 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
| Show on chart | 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% |
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