(HEI) Heico - Ratings and Ratios
Aerospace Parts, Defense Electronics, Engine Components, Avionics, RF Equipment
Dividends
| Dividend Yield | 0.07% |
| Yield on Cost 5y | 0.17% |
| Yield CAGR 5y | 7.03% |
| Payout Consistency | 88.5% |
| Payout Ratio | 4.8% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 25.2% |
| Value at Risk 5%th | 39.9% |
| Relative Tail Risk | -3.73% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.61 |
| Alpha | 10.14 |
| CAGR/Max DD | 1.29 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.346 |
| Beta | 0.684 |
| Beta Downside | 0.776 |
| Drawdowns 3y | |
|---|---|
| Max DD | 21.26% |
| Mean DD | 4.98% |
| Median DD | 3.96% |
Description: HEI Heico December 03, 2025
HEICO Corporation (NYSE:HEI) is a diversified aerospace and defense supplier that operates two primary businesses: the Flight Support Group, which sells and services jet-engine and aircraft components-including thermal-insulation systems and hydraulic/pneumatic parts-for commercial, regional and general-aviation customers; and the Electronic Technologies Group, which designs and manufactures a broad array of electro-optical, RF, power-electronics, and specialty-semiconductor products for both civilian and military applications.
Both segments are heavily weighted toward aftermarket and repair-overhaul services, a business model that historically yields gross margins above 40 % and generates recurring revenue streams insulated from new-aircraft order cycles. Recent FY2023 results show HEICO’s total revenue of roughly $2.5 billion, with an operating margin near 30 %, driven by a 7 % year-over-year increase in flight-support parts backlog and a 5 % rise in electronic-technology sales tied to growing defense spending on RF-countermeasures and 5G-compatible avionics.
Key sector drivers include sustained U.S. defense budget growth (projected FY2025 FY2026 FY2027 increases of 3-4 % YoY), the FAA’s push for more frequent engine-overhaul intervals, and the accelerating adoption of electric-propulsion and autonomous-flight technologies that demand higher-performance thermal-insulation and power-conversion solutions-areas where HEICO’s product portfolio is well positioned. For a deeper quantitative view of HEI’s valuation metrics, you might explore the analysis on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (641.8m TTM) > 0 and > 6% of Revenue (6% = 257.4m TTM) |
| FCFTA 0.09 (>2.0%) and ΔFCFTA 1.66pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 39.04% (prev 37.36%; Δ 1.69pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.10 (>3.0%) and CFO 844.6m > Net Income 641.8m (YES >=105%, WARN >=100%) |
| Net Debt (2.19b) to EBITDA (1.15b) ratio: 1.90 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.35 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (140.9m) change vs 12m ago 0.46% (target <= -2.0% for YES) |
| Gross Margin 41.48% (prev 41.86%; Δ -0.37pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 53.77% (prev 50.93%; Δ 2.84pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 7.27 (EBITDA TTM 1.15b / Interest Expense TTM 132.4m) >= 6 (WARN >= 3) |
Altman Z'' 4.38
| (A) 0.20 = (Total Current Assets 2.39b - Total Current Liabilities 711.3m) / Total Assets 8.53b |
| (B) 0.41 = Retained Earnings (Balance) 3.49b / Total Assets 8.53b |
| (C) 0.12 = EBIT TTM 962.5m / Avg Total Assets 7.98b |
| (D) 0.90 = Book Value of Equity 3.49b / Total Liabilities 3.88b |
| Total Rating: 4.38 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 75.32
| 1. Piotroski 6.50pt |
| 2. FCF Yield 1.73% |
| 3. FCF Margin 18.24% |
| 4. Debt/Equity 0.59 |
| 5. Debt/Ebitda 1.90 |
| 6. ROIC - WACC (= 4.47)% |
| 7. RoE 16.57% |
| 8. Rev. Trend 97.79% |
| 9. EPS Trend 31.21% |
What is the price of HEI shares?
Over the past week, the price has changed by -0.55%, over one month by -4.75%, over three months by -2.63% and over the past year by +21.65%.
Is HEI a buy, sell or hold?
- Strong Buy: 9
- Buy: 4
- Hold: 7
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the HEI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 352.4 | 13.5% |
| Analysts Target Price | 352.4 | 13.5% |
| ValueRay Target Price | 378.2 | 21.8% |
HEI Fundamental Data Overview December 05, 2025
P/E Trailing = 67.5655
P/E Forward = 57.4713
P/S = 10.043
P/B = 10.4105
P/EG = 2.66
Beta = 1.038
Revenue TTM = 4.29b USD
EBIT TTM = 962.5m USD
EBITDA TTM = 1.15b USD
Long Term Debt = 2.44b USD (from longTermDebt, last quarter)
Short Term Debt = 3.73m USD (from shortTermDebt, last quarter)
Debt = 2.45b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.19b USD (from netDebt column, last quarter)
Enterprise Value = 45.26b USD (43.08b + Debt 2.45b - CCE 261.9m)
Interest Coverage Ratio = 7.27 (Ebit TTM 962.5m / Interest Expense TTM 132.4m)
FCF Yield = 1.73% (FCF TTM 782.4m / Enterprise Value 45.26b)
FCF Margin = 18.24% (FCF TTM 782.4m / Revenue TTM 4.29b)
Net Margin = 14.96% (Net Income TTM 641.8m / Revenue TTM 4.29b)
Gross Margin = 41.48% ((Revenue TTM 4.29b - Cost of Revenue TTM 2.51b) / Revenue TTM)
Gross Margin QoQ = 39.84% (prev 42.50%)
Tobins Q-Ratio = 5.31 (Enterprise Value 45.26b / Total Assets 8.53b)
Interest Expense / Debt = 1.30% (Interest Expense 31.7m / Debt 2.45b)
Taxrate = 18.85% (44.3m / 235.0m)
NOPAT = 781.0m (EBIT 962.5m * (1 - 18.85%))
Current Ratio = 3.35 (Total Current Assets 2.39b / Total Current Liabilities 711.3m)
Debt / Equity = 0.59 (Debt 2.45b / totalStockholderEquity, last quarter 4.14b)
Debt / EBITDA = 1.90 (Net Debt 2.19b / EBITDA 1.15b)
Debt / FCF = 2.79 (Net Debt 2.19b / FCF TTM 782.4m)
Total Stockholder Equity = 3.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.52% (Net Income 641.8m / Total Assets 8.53b)
RoE = 16.57% (Net Income TTM 641.8m / Total Stockholder Equity 3.87b)
RoCE = 15.24% (EBIT 962.5m / Capital Employed (Equity 3.87b + L.T.Debt 2.44b))
RoIC = 12.60% (NOPAT 781.0m / Invested Capital 6.20b)
WACC = 8.13% (E(43.08b)/V(45.53b) * Re(8.53%) + D(2.45b)/V(45.53b) * Rd(1.30%) * (1-Tc(0.19)))
Discount Rate = 8.53% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.42%
[DCF Debug] Terminal Value 78.43% ; FCFE base≈692.5m ; Y1≈789.1m ; Y5≈1.09b
Fair Price DCF = 311.3 (DCF Value 17.14b / Shares Outstanding 55.1m; 5y FCF grow 16.26% → 3.0% )
EPS Correlation: 31.21 | EPS CAGR: -44.72% | SUE: -2.84 | # QB: 0
Revenue Correlation: 97.79 | Revenue CAGR: 24.18% | SUE: 1.13 | # QB: 3
EPS next Quarter (2026-01-31): EPS=1.27 | Chg30d=+0.002 | Revisions Net=+1 | Analysts=9
EPS next Year (2026-10-31): EPS=5.35 | Chg30d=+0.018 | Revisions Net=+2 | Growth EPS=+12.1% | Growth Revenue=+9.9%
Additional Sources for HEI Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle