HEICO Corp (HEI)
Fair ValueFundamental
76
Price
$303.17
Market Cap
$42.57B
Part 1 · What the company is worth
Overview
HEICO Corporation provides aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment offers jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components and assemblies. 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 commercial aircraft surfaces, as well as for avionics and navigation systems, subcomponents, and other military aircraft instruments. The company's 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 radio frequency (RF) interference shielding and suppression filters; power electronics; power conversion and interface products; interconnection devices; and underwater locator and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; environment connectivity products and molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; radiation assurance, embedded computing, and silicone solutions; test sockets and adapters; and electronic components and rotary joint assemblies. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$5.18B
Trailing 12 months (through 7/31/2026)
Net Income
$848M
Trailing 12 months (through 7/31/2026)
Free Cash Flow
$861M
Total Equity
$4.31B
Total Liabilities
$3.65B
Current Ratio
2.72
Interest Coverage
9.40
Debt/EBITDA
2.09
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$365.96
Current Price
$303.17
Margin of Safety
+17.2%
Fair Value Range
$295.46 - $436.45
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
50.53
ROE
16.0%
P/B Ratio
3.38
P/FCF
16.23
Gross Margin
40.4%
ROIC
11.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
11.0%
WACC
10.2%
ROIC − WACC
+0.9 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (22)
- EPS shows upward trend
- EPS CAGR 7.56%
- Price CAGR 23.12%
- ROIC 11.0%
- Gross Margin 40.4%
- P/FCF 16.23
- Debt/Equity ratio
- Operating Margin 24.0%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 18.3%
- Revenue Growth 5Y 20.2%
- Analyst Consensus 64% Buy
- Earnings Surprise avg 10.0%
- Earnings Quality (OCF/NI) 1.31
- Share Dilution 0.6%
- Net Margin Trend 16.4% vs 15.0%
- Piotroski F-Score 8/9
Failed (5)
- P/B Ratio 3.38
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- PEG Ratio 2.60
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Eric A. Mendelson | Co-CEO, Co-President & Co-Chairman | 60 |
| Mr. Victor H. Mendelson | Co-CEO, Co-President & Co-Chairman | 58 |
| Mr. Carlos L. Macau Jr. | Executive VP, CFO & Treasurer | 58 |
| Mr. Bradley K. Rowen | Chief Accounting Officer & Assistant Treasurer | 42 |
| Mr. Joseph W. Pallot | General Counsel | 65 |
| Ms. Elizabeth R. Letendre | Corporate Secretary | - |
Audit Risk
9
Board Risk
9
Compensation Risk
3
Shareholder Rights Risk
5
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2025-12-22
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-27
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-25
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for HEI, sourced from Markets Gazette.
- 5/27/2026POSITIVEHEICO Stock Surges On Q2 Earnings Beat: Key Details From The Print
HEICO Corporation announced its second-quarter fiscal 2026 financial results, surpassing earnings expectations. While specific figures are pending the full report, the market's positive reaction, indicated by the stock surge, suggests strong performance metrics. Investors will be scrutinizing revenue growth, segment performance (especially within their Electronic Technologies and Flight Services segments), and forward-looking guidance. A beat on earnings typically signals effective cost management and robust demand for HEICO's aerospace and electronics components, potentially leading to upward revisions in analyst price targets and increased investor confidence.
- 5/20/2026POSITIVEHere's How Much $1000 Invested In Heico 20 Years Ago Would Be Worth Today
An initial investment of $1000 in Heico Corporation (HEI) made 20 years ago would have grown to approximately $23,800 today, representing a staggering 2280% return. This performance significantly outpaces the broader market, highlighting Heico's consistent growth and operational efficiency in the aerospace and defense sector. The company's strategic acquisitions and organic expansion have been key drivers of this long-term value creation, making it a standout performer for patient investors.
- 3/25/2026POSITIVEHere's How Much You Would Have Made Owning Heico Stock In The Last 15 Years
Heico Corporation (HEI) has demonstrated remarkable long-term value creation for its shareholders, delivering substantial returns over the past 15 years. While specific figures are not detailed in this summary, the article implies a strong growth trajectory and consistent outperformance. This sustained success suggests effective management, strategic acquisitions, and robust operational execution within the aerospace and defense sectors. Investors looking for stable, long-term growth may find Heico's historical performance indicative of its potential for future gains, especially given its niche market position and consistent dividend growth.
via Markets Gazette