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HEI

NYSE
Favorable · 59/100

HEICO Corp

Industrials
Aerospace & Defense

$368.58

1.8%

Updated Today 12:11 PM ET

Report Card

HEI at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 59/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 13.4% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$42.09B

P/E

53.3x

Forward P/E (est.)

40.72x

ROE

17.8%

Revenue Growth

18.8%

EPS Growth

30.9%

Profit Margin

16.1%

FCF Yield

1.1%

Debt / Equity

0.5x

ROIC

17.0%

Interest Coverage

268.16x

Current Ratio

2.92x

Dividend Yield

0.1%

Implied Growth (rev. DCF)

6.8%

Rating Score

59/100

Business Overview
Research

HEICO Corp (HEI) is a large-cap company in the Aerospace & Defense industry, part of the Industrials sector of the S&P 500, with a market value around $42.09B.

In its latest reported year it generated about $4.49B in revenue and $690.38M in net profit.

Our model rates HEI Favorable (59/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what HEI's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. HEI trades near $368.58, above its 50-day average ($313.50) and 200-day average ($315.03). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 86 it is overbought — the recent rally is stretched and can cool off.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. HEI's is $8.99 (~2.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month HEI found buyers near $315.00 (support) and sellers near $369.48 (resistance); its 52-week range is $256.11–$369.48. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

24.5%

4/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $1.38B in 2016 to $4.49B in 2025, a 14.0% compound annual growth rate. The most recent year grew a strong 18.8% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research
4/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

40.1%

Operating Margin

22.7%

Net Margin

15.4%

ROE

17.8%

HEICO Corp keeps about 16.1% of each sales dollar as net profit, with a 40.1% gross margin and 22.7% operating margin. Return on equity is 17.8% and return on invested capital about 17.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$10.46M

Net Debt

-$199.88M

Net cash position

Net Debt / EBITDA

-0.2x

Debt / Equity

0.5x

Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 268.2x, with a current ratio of 2.9x. That is a moderate, manageable debt load for most businesses. It carries roughly $10.46M of total debt against $210.34M of cash.

Cash Flow Analysis
Research
2/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$934.27M

Free Cash Flow

$861.38M

FCF Margin

19.2%

In the latest year HEICO Corp produced about $934.27M of operating cash flow and $861.38M of free cash flow after capital spending. That is a free-cash-flow yield of about 1.1% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

53.3x

P/S

9.38x

P/B

8.91x

EV / EBITDA

34.47x

HEI trades at 53.3x trailing earnings (about 40.7x on estimated forward earnings), 9.4x sales, and 8.9x book value. Reverse-engineering today's price implies the market expects roughly 6.8% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$1,243.43

Current price

$368.58

+237% · Below fair-value estimate

Starting FCF (latest 10-K)

$861.38M

Growth, years 1–5

18.8%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$12.64B
PV of terminal value$20.82B
Estimated equity value$33.46B
Shares outstanding27M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where HEI sits versus its Industrials sector peers in the S&P 500.

TTM P/E
53.3xExpensive
Forward P/E
40.7xFair
P/S ratio
9.4xExpensive
Revenue growth
18.8%Strong
EPS growth
30.9%Strong
Gross margin
40.1%Average
Net margin
16.1%Strong
ROE
17.8%Average

Bands show the middle half (25th–75th percentile) of the 87 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How HEI stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (165 S&P 500 companies), HEI ranks #26 of 165 by our overall rating. It trades at a premium versus the sector on earnings (53.3x P/E vs. 32x median) with a lower return on equity (17.8% vs. 19.7%) and faster revenue growth (18.8% vs. 5.2%).

P/E vs sector

53.3x

median 32x

ROE vs sector

17.8%

median 19.7%

Growth vs sector

18.8%

median 5.2%

Sector rank

#26

of 165 by rating

CompanyP/ERev Gr.Rating
HEIThis stock53.3x18.8%Favorable· 59
AXON34.0%Neutral· 42
LHX31.8x-20.8%Weak· 38
CRS61.9x3.7%Neutral· 49
CW55x12.2%Neutral· 53
ATI60.3x2.9%Weak· 36
GD23.2x-16.9%Neutral· 48
BWXT50.8x21.4%Neutral· 52
Industrials median32x5.2%21/100

Valuation vs. quality map

sector medianLHXCRSCWATIGDBWXTHEIP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 165 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $368.58 today · expected CAGR 39%54%

Metric20262027202820292030
Revenue$5.34B$6.35B$7.56B$8.99B$10.70B
Net income$800.58M$952.69M$1.13B$1.35B$1.61B
EPS$29.75$35.41$42.14$50.14$59.67
Share price (low)$952.15$1,133.06$1,348.34$1,604.53$1,909.39
Share price (high)$1,577.00$1,876.63$2,233.19$2,657.50$3,162.42
CAGR (low–high)158% / 328%75% / 126%54% / 82%44% / 64%39% / 54%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for HEI:

  • Revenue is growing 18.8% a year, a sign of real demand.
  • High net margins (16.1%) point to pricing power or efficiency.
  • Strong return on equity (17.8%) shows capital is put to work well.
  • Our model's overall read is Favorable (59/100).
Bear Case

The case against HEI:

  • A rich 53.3x earnings multiple prices in a lot of growth.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Valuation risk — at 53.3x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: HEICO Corp is a large-cap industrials business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 53.3x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

HEI — frequently asked questions

Is HEI a good stock to buy?

We don't give buy or sell advice. Our model rates HEICO Corp Favorable (59/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is HEI's rating on The Stocks School?

HEICO Corp currently scores 59/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does HEI's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from HEICO Corp's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for HEI calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this HEI analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell HEI. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.