HEICO Corporation

HEICO Corporation

HEIยทNYSE

$329.11

-0.91%
IndustrialsAerospace & Defense

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.

At a Glance

Live Snapshot
Market Cap$45.85B
EPS4.9700
P/E Ratio66.22
Earnings Date08/24/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 66.2).

Valuation inputs: P/E 66.2, earnings yield +1.5%, momentum -0.9%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +16.0%, ROIC +11.1%).

Profitability stack: net margin +15.4%, ROE +16.0%, ROIC +11.1%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +48.5%, momentum -0.9%, net margin +15.4%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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HEICO Corporation Market vs Earnings Trajectory

HEI ยท NYSE

Loading price and EPS data...

HEICO Corporation

HEICO Corporation Fair Value Envelope

HEI ยท NYSE

Our analysis suggests that HEI has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $329.11, this represents a potential HIDDEN relative to our calculated worth for HEICO Corporation.

Intrinsic Value
Current Price: $329.11
3Y+92.0%
5Y+113.0%
10Y+318.0%
3Y+103.0%
5Y+151.0%
10Y+226.0%
3Y+96.0%
5Y+120.0%
10Y+342.0%
3Y+100.0%
5Y+128.0%
10Y+275.0%
3Y+98.0%
5Y+123.0%
10Y+295.0%
3Y+108.0%
5Y+140.0%
10Y+317.0%
HEICO Corporation

HEICO Corporation Profit Bridge

HEI ยท NYSE
Revenue4.49B
Cost of Goods Sold (2.70B)
Gross Profit1.79B
Operating Expenses (767.47M)
Operating Income1.02B
Interest Expense (129.88M)
Other Income/Expense-125.44M
Pretax Income893.55M
Income Tax (148.00M)
Net Income690.38M
Net Income
690.38M

Profitability Analysis

Gross Margin

39.8%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

22.7%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

15.4%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

16.6%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

39.83%
Gross Profit Margin
-5%
3Y-6.0%
5Y-5.0%
10Y-2.0%
22.72%
Operating Profit Margin
5%
3Y+3.0%
5Y+8.0%
10Y+16.0%
15.39%
Net Profit Margin
16%
3Y-3.0%
5Y-12.0%
10Y+36.0%
16.04%
Return on Equity
13%
3Y+19.0%
5Y+1.0%
10Y-1.0%
8.12%
Return on Assets
20%
3Y-5.0%
5Y-8.0%
10Y+6.0%
11.05%
Return on Invested Capital
12%
3Y+5.0%
5Y+6.0%
10Y+10.0%
HEI

HEICO Corporation Cash Conversion Engine

HEI ยท NYSE
Net Income745.55M
Depreciation & Amortization196.08M
Stock-Based Compensation34.38M
Change in Working Capital-24.35M
Others31.17M
Capital Expenditures-72.89M
Free Cash Flow861.38M

Cash Flow Quality Analysis

FCF Conversion Rate

115.5%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

7.8%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+40.3%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$24.35M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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HEICO Corporation Funding & Solvency Profile

HEI ยท NYSE
Cash & Cash Equivalents210.34M
Net Receivables734.96M
Inventory1.41B
Other Current Assets280.66M
Total Current Assets3 B
Property, Plant & Equipment462.83M
Goodwill & Intangible Assets5.91B
Long-Term Investments0.00
Other Non-Current Assets580.36M
Total Non-Current Assets1 B
Total Assets
9.59B

Financial Health Analysis

Current Ratio

2.92x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.78x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

2 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

27% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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HEICO Corporation Street Expectations Map

HEI ยท NYSE

Wall Street analysts project that HEI stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 378.44, with estimates ranging from a low of 350.00 to a high of 410.00.

Lowest Target
350.00
6.35%
Consensus Target
378.44
14.99%
Highest Target
410.00
24.58%

The consensus 1-year price target stands at 378.44, with estimates ranging from a low of 350.00 to a high of 410.00.

Analyst Consensus Analysis

Upside Potential

+15.0%

Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.

Analyst Agreement

15.9% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

High

Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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HEICO Corporation Insider Positioning

HEI ยท NYSE

During the last 12 months, insiders have purchased $2.42M and sold $18.14M worth of HEI shares, resulting in $15.72M of net selling activity.

3 Months

Bought

0

0.00

Sold

676

150.75K

Net Activity

-151K

-$151K

3-6 Months

Bought

4.1K

999.90K

Sold

0

0.00

Net Activity

+1000K

+$1000K

6-9 Months

Bought

5.8K

1.42M

Sold

0

0.00

Net Activity

+1.4M

+$1.42M

9-12 Months

Bought

0

0.00

Sold

56.3K

17.99M

Net Activity

-18.0M

-$17.99M

Top Buyers

1
CN

Cheruvatath Nandakumar

Director

4.1K sharesโ€ข1 transactions

$1000K

2
HMH

Hildebrandt Mark H

Director

1.1K sharesโ€ข2 transactions

$264K

3
CTM

Culligan Thomas M

Director

676 sharesโ€ข1 transactions

$165K

4
HA

Henriques Adolfo

Director

676 sharesโ€ข1 transactions

$165K

5
MEA

Mendelson Eric A

Director, Officer, Other: Co-Cob And Co-Ceo

676 sharesโ€ข1 transactions

$165K

Top Sellers

1
MLA

Mendelson Laurans A

Director, Officer, Other: Executive Chairman

56.3K sharesโ€ข1 transactions

$17.99M

2
NJ

Neitzel Julie

Director

676 sharesโ€ข1 transactions

$151K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $15.72M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.13:1

Weak buy/sell ratio. Selling significantly exceeds buyingโ€”monitor for potential fundamental concerns.

Recent Trend (3 Months)

$151K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Buying

5 insider buyers vs. 2 sellers. Broad-based buying across management team suggests widespread confidence.

Insider Activity Insight

Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.

0.00%
Dividend Yield
-100%
3Y-
5Y-
10Y-100.0%
ย 

hei Dividend History

HEI
10Y CAGR +30%
Latest $0.12
Annual $0.24
5 year growth trend
Last Period: +0%