Back to rankings

HEICO Corp (HEI)

Fair Value
IndustrialsAerospace & DefenseUnited States

Fundamental

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.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

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

General caseFairly Valued

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

Analyst price target:$394.45
Discounted cash flow (DCF):$419.88
Earnings multiple (P/E):$260.58
Graham growth formula:$218.54
Earnings power value (EPV):$65.80
Justified P/B:$67.18
Dividend discount (Gordon):$3.64
P/FFO, funds from operations:$257.21
Mid-cycle earnings:$402.02
Revenue multiple:$104.21
Analyst Consensus:Buy (18B / 10H / 0S)
Last Earnings Surprise:+9.27%

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

8/9

Strong financial health

score
criteria

Earnings Quality

1.31

High quality: earnings backed by cash

Share Dilution

0.6%

Share count is stable

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Eric A. MendelsonCo-CEO, Co-President & Co-Chairman60
Mr. Victor H. MendelsonCo-CEO, Co-President & Co-Chairman58
Mr. Carlos L. Macau Jr.Executive VP, CFO & Treasurer58
Mr. Bradley K. RowenChief Accounting Officer & Assistant Treasurer42
Mr. Joseph W. PallotGeneral Counsel65
Ms. Elizabeth R. LetendreCorporate 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

  • 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

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for HEI, sourced from Markets Gazette.

  • 5/27/2026POSITIVE
    HEICO 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.

  • 5/20/2026POSITIVE
    Here'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.

  • 3/25/2026POSITIVE
    Here'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