(HEI-A) HEICO - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 31.221m USD | Total Return: 3.7% in 12m
Avg Turnover: 67.8M
EPS Trend: 99.2%
Qual. Beats: 5
Rev. Trend: 97.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
HEICO Corporation is a manufacturer and distributor of aerospace and defense components, operating through two primary segments: the Flight Support Group and the Electronic Technologies Group. The company specializes in FAA-approved replacement parts for jet engines and aircraft components, providing a cost-effective alternative to Original Equipment Manufacturers (OEMs). Its portfolio extends to electronic systems, including infrared simulation, power conversion products, and underwater locator beacons for the aviation and defense sectors.
The aerospace parts industry is characterized by high barriers to entry due to stringent FAA certification requirements and long-term maintenance cycles. HEICOs business model leverages the aftermarket demand, where recurring revenue is generated from the ongoing need to repair and maintain aging commercial and military aircraft fleets. For deeper insights into these industry cycles, ValueRay provides comprehensive data tools.
Headquartered in Hollywood, Florida, and incorporated in 1957, the company also serves niche markets in telecommunications and medical technology. Its Electronic Technologies Group focuses on high-reliability components designed to operate in extreme environments, such as space and subsea applications.
- Commercial airline demand for lower-cost FAA-approved replacement parts drives aftermarket margins
- Increased global defense spending accelerates demand for specialized electronic components
- Strategic acquisitions of niche aerospace manufacturers provide consistent inorganic revenue growth
- Supply chain disruptions and rising raw material costs impact production lead times
- Recovery in international passenger traffic volumes boosts Flight Support Group service revenue
| Net Income: 712.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.41 > 1.0 |
| NWC/Revenue: 36.02% < 20% (prev 37.19%; Δ -1.17% < -1%) |
| CFO/TA 0.10 > 3% & CFO 909.8m > Net Income 712.6m |
| Net Debt (2.27b) to EBITDA (1.26b): 1.81 < 3 |
| Current Ratio: 3.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (141.0m) vs 12m ago 0.39% < -2% |
| Gross Margin: 40.24% > 18% (prev 0.42%; Δ 3.98k% > 0.5%) |
| Asset Turnover: 54.72% > 50% (prev 50.59%; Δ 4.14% > 0%) |
| Interest Coverage Ratio: 8.33 > 6 (EBITDA TTM 1.26b / Interest Expense TTM 126.9m) |
| A: 0.18 (Total Current Assets 2.48b - Total Current Liabilities 810.6m) / Total Assets 9.04b |
| B: 0.42 (Retained Earnings 3.82b / Total Assets 9.04b) |
| C: 0.12 (EBIT TTM 1.06b / Avg Total Assets 8.47b) |
| D: 0.96 (Book Value of Equity 3.84b / Total Liabilities 4.00b) |
| Altman-Z'' = 4.44 = AA |
| DSRI: 0.88 (Receivables 652.0m/641.5m, Revenue 4.63b/3.99b) |
| GMI: 1.04 (GM 40.24% / 41.95%) |
| AQI: 0.98 (AQ_t 0.68 / AQ_t-1 0.69) |
| SGI: 1.16 (Revenue 4.63b / 3.99b) |
| TATA: -0.02 (NI 712.6m - CFO 909.8m) / TA 9.04b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 224.04 with a total of 293,200 shares traded.
Over the past week, the price has changed by +3.55%,
over one month by +9.01%,
over three months by -11.44% and
over the past year by +3.71%.
HEICO has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold HEI-A.
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 280 | 25% |
P/E Trailing = 44.2253
P/E Forward = 38.4615
P/S = 6.7383
P/B = 6.934
P/EG = 2.0868
Revenue TTM = 4.63b USD
EBIT TTM = 1.06b USD
EBITDA TTM = 1.26b USD
Long Term Debt = 2.50b USD (from longTermDebt, last quarter)
Short Term Debt = 3.40m USD (from shortTermDebt, last quarter)
Debt = 2.53b USD (from shortLongTermDebtTotal, last quarter) + Leases 25.7m
Net Debt = 2.27b USD (calculated: Debt 2.53b - CCE 261.0m)
Enterprise Value = 33.5b USD (31.2b + Debt 2.53b - CCE 261.0m)
Interest Coverage Ratio = 8.33 (Ebit TTM 1.06b / Interest Expense TTM 126.9m)
EV/FCF = 39.84x (Enterprise Value 33.5b / FCF TTM 840.8m)
FCF Yield = 2.51% (FCF TTM 840.8m / Enterprise Value 33.5b)
FCF Margin = 18.15% (FCF TTM 840.8m / Revenue TTM 4.63b)
Net Margin = 15.38% (Net Income TTM 712.6m / Revenue TTM 4.63b)
Gross Margin = 40.24% ((Revenue TTM 4.63b - Cost of Revenue TTM 2.77b) / Revenue TTM)
Gross Margin QoQ = 38.60% (prev 40.17%)
Tobins Q-Ratio = 3.70 (Enterprise Value 33.5b / Total Assets 9.04b)
Interest Expense / Debt = 5.01% (Interest Expense 126.9m / Debt 2.53b)
Taxrate = 11.54% (26.7m / 231.5m)
NOPAT = 934.8m (EBIT 1.06b * (1 - 11.54%))
Current Ratio = 3.06 (Total Current Assets 2.48b / Total Current Liabilities 810.6m)
Debt / Equity = 0.56 (Debt 2.53b / totalStockholderEquity, last quarter 4.50b)
Debt / EBITDA = 1.81 (Net Debt 2.27b / EBITDA 1.26b)
Debt / FCF = 2.70 (Net Debt 2.27b / FCF TTM 840.8m)
Total Stockholder Equity = 4.23b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.42% (Net Income 712.6m / Total Assets 9.04b)
RoE = 16.85% (Net Income TTM 712.6m / Total Stockholder Equity 4.23b)
RoCE = 15.69% (EBIT 1.06b / Capital Employed (Equity 4.23b + L.T.Debt 2.50b))
RoIC = 11.68% (NOPAT 934.8m / Invested Capital 8.00b)
WACC = 8.59% (E(31.2b)/V(33.8b) * Re(8.93%) + D(2.53b)/V(33.8b) * Rd(5.01%) * (1-Tc(0.12)))
Discount Rate = 8.93% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 0.40%
[DCF] Terminal Value 77.19% ; FCFF base≈785.1m ; Y1≈900.0m ; Y5≈1.32b
[DCF] Fair Price = 199.7 (EV 19.1b - Net Debt 2.27b = Equity 16.8b / Shares 84.4m; r=8.59% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.21 | EPS CAGR: 26.81% | SUE: 0.97 | # QB: 5
Revenue Correlation: 97.32 | Revenue CAGR: 24.73% | SUE: 0.20 | # QB: 0