HEICO (HEI) AI Stock Analysis

• Market Cap: $38.51B
• Dividend Yield: 0.07%
• Average Volume (3M): 416.42K
• Price to Earnings (P/E): 69.9
• Beta (1Y): 0.71
• Revenue Growth: 13.46%
• EPS Growth: 33.75%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.26
• Shares Outstanding: 55,053,673
• 10 Day Avg. Volume: 339,343
• 30 Day Avg. Volume: 416,416
• PEG Ratio: 2.52
• Price to Book (P/B): 9.33
• Price to Sales (P/S): 8.79
• P/FCF Ratio: 55.23
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 11.37
• Enterprise Value/Gross Profit: 27.40
• Enterprise Value/Ebitda: 42.32
• 1Y Price Target: $361.18
• Price Target Upside: 12.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $359.00 ▲(12.11% Upside)

HEICO's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While the technical analysis shows a neutral trend, the high valuation poses a risk. The company's strategic growth and robust financial metrics support a favorable outlook, despite some operational challenges.

Positive Factors

Revenue Growth

HEICO's consistent revenue growth, driven by strong organic demand and strategic acquisitions, enhances its market position and long-term prospects.

Cash Flow Strength

Robust cash flow growth supports HEICO's ability to fund operations, invest in R&D, and pursue strategic acquisitions, ensuring financial flexibility.

Strategic Acquisitions

Strategic acquisitions like Rosen Aviation LLC enhance HEICO's product offerings and market reach, contributing to sustainable earnings growth.

Negative Factors

Decreased Demand for Medical Products

Reduced demand in the medical segment could hinder growth in the Electronic Technologies Group, affecting overall revenue diversification.

Lower Operating Margin

A decline in operating margins due to decreased sales in defense and medical products may impact profitability and operational efficiency.

Leadership Change

The loss of a long-serving board member may affect governance and strategic oversight, potentially impacting long-term strategic decisions.

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 robust profitability, minimal leverage, and healthy cash flow generation. The company shows consistent revenue growth and efficient operations, positioning it well for continued growth in the aerospace and defense industry.

Income Statement

HEICO's income statement shows strong profitability with a consistent increase in revenue over the years. The TTM data indicates a gross profit margin of 41.48% and a net profit margin of 14.96%, reflecting efficient cost management and strong bottom-line performance. Revenue growth rate of 3.76% in the TTM period suggests steady expansion. EBIT and EBITDA margins are robust at 22.44% and 25.66%, respectively, indicating healthy operational efficiency.

Balance Sheet

The balance sheet reveals a solid financial position with a very low debt-to-equity ratio of 0.0009 in the TTM period, highlighting minimal leverage risk. Return on equity is strong at 16.57%, showcasing effective use of equity to generate profits. The equity ratio stands at 48.54%, indicating a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

HEICO's cash flow statement demonstrates strong cash generation capabilities. The free cash flow growth rate of 2.67% in the TTM period indicates positive cash flow trends. The operating cash flow to net income ratio of 1.19 and free cash flow to net income ratio of 0.93 suggest efficient conversion of income into cash, supporting liquidity and potential for reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.29B	3.86B	2.97B	2.21B	1.87B	1.79B
Gross Profit	1.78B	1.61B	1.25B	938.82M	796.30M	747.69M
EBITDA	1.15B	1.00B	756.77M	592.71M	486.24M	465.71M
Net Income	641.78M	514.11M	403.60M	351.68M	304.22M	313.98M
Balance Sheet
Total Assets	8.53B	7.59B	7.20B	4.10B	3.50B	3.55B
Cash, Cash Equivalents and Short-Term Investments	261.89M	162.10M	171.05M	139.50M	108.30M	406.85M
Total Debt	2.45B	2.25B	2.50B	304.93M	250.37M	754.01M
Total Liabilities	3.88B	3.90B	4.00B	1.12B	948.88M	1.32B
Stockholders Equity	4.14B	3.64B	3.15B	2.61B	2.26B	1.98B
Cash Flow
Free Cash Flow	782.44M	614.11M	399.30M	435.87M	407.90M	386.19M
Operating Cash Flow	844.56M	672.37M	448.74M	467.86M	444.08M	409.13M
Investing Cash Flow	-878.74M	-293.20M	-2.48B	-395.83M	-183.45M	-199.04M
Financing Cash Flow	89.90M	-389.39M	2.07B	-33.83M	-558.97M	137.74M

HEICO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 320.21
• 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 320.21 is above the 20-day moving average (MA) of 318.84, above the 50-day MA of 318.01, and above the 200-day MA of 276.13, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 39.54 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
LHX	78 Outperform	53.19B	31.70	7.70%	1.67%	2.93%	43.29%
CW	77 Outperform	19.52B	43.43	16.65%	0.17%	9.89%	16.20%
HEI	76 Outperform	$38.51B	69.86	16.71%	0.07%	13.46%	33.75%
WWD	74 Outperform	14.43B	37.67	15.71%	0.45%	5.53%	5.56%
TXT	71 Outperform	14.88B	18.92	10.98%	0.10%	1.19%	-6.77%
BWXT	70 Outperform	16.29B	54.44	24.86%	0.56%	10.13%	10.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.