One-glance verdict
Undervalued
$503.91 our estimate vs market $326.35
Wall Street consensus: $390.70 (-22.5% lower than our fair-value estimate)
35% below our estimate, below the bear case
Fundamentals snapshot
HEICO Corporation
HEI · NYQ · Industrials · Aerospace & Defense
Current price
$326.35
52-week range
$256.11 - $376.86
Market cap
$45.61B
Balance sheet
Watch
7.85x Adequate
Net debt $2.30B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 15.4% last year.
- Reward Returns 17.7% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 1094.4% over 3 years.
What this company does
HEICO Corporation
HEICO Corporation makes and fixes parts for airplanes and defense equipment, like jet engine components and electronic systems. Most of their money comes from selling these specialized airplane parts and repair services, which is important because it shows they are a key supplier to the aviation and defense industries. This means they provide essential items that keep planes flying and defense systems working.
How the company got here
HEICO Corporation was founded in 1957 and has grown into a significant player in the aerospace, defense, and electronics industries. The company's strategy has historically focused on acquiring and improving niche businesses within these sectors. This approach has allowed HEICO to build a diverse portfolio of specialized products and services without relying on a single large market. Over the decades, HEICO has consistently demonstrated a knack for integrating acquired companies and fostering their growth, contributing to its long-term success.
What it actually does
HEICO designs, manufactures, and distributes a wide array of products and provides services primarily for the aerospace, defense, and electronics markets. Think of them as a behind-the-scenes supplier for critical components and specialized equipment. They make parts that go into airplanes, systems used for defense applications, and sophisticated electronic devices. Their work ensures that aircraft can fly safely, defense systems operate effectively, and electronic technologies perform as needed.
Flight Support Group
This segment is a major part of HEICO's business, focusing on components and services for both commercial and military aircraft. They produce and distribute replacement parts for jet engines and aircraft, including specialized insulation and structural components. Additionally, they offer repair and overhaul services for a variety of aircraft parts, from avionics to engine components. This means they help keep planes flying by providing essential parts and maintenance, serving airlines and defense contractors.
Electronic Technologies Group
The Electronic Technologies Group is HEICO's other key business, concentrating on advanced electronic and electro-optical products. This segment develops and manufactures equipment for simulation and testing, laser products, and various power electronics. They also create specialized components like filters for electromagnetic interference and products for underwater and emergency location systems. Essentially, this part of HEICO provides high-tech solutions for defense, aerospace, and other specialized electronic applications.
What management is betting on now
HEICO's management is focused on continuing its proven strategy of acquiring and growing niche businesses within its core aerospace, defense, and electronics markets. They aim to identify companies with strong potential that can be enhanced through HEICO's operational expertise and financial backing. A key priority is to maintain the company's strong financial performance and cash flow generation, which fuels further acquisitions and organic growth. This disciplined approach to expansion and operational excellence is central to their long-term vision.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$189.54M
FY2025 Q1
$185.70M
FY2025 Q2
$188.73M
FY2025 Q3
$202.51M
FY2025 Q4
$284.44M
FY2026 Q1
$165.10M
FY2026 Q2
$273.92M
FY2026 Q3
$304.73M
Revenue
$1.41B
Net income
$235.44M
Diluted EPS
1.67
Operating cash flow
$345.34M
Free cash flow
$304.73M
Fetching…
Sources
Revenue
$1.38B
Net income
$233.80M
Diluted EPS
1.66
Operating cash flow
$291.97M
Free cash flow
$273.92M
Fetching…
Sources
Revenue
$1.18B
Net income
$190.19M
Diluted EPS
1.35
Operating cash flow
$178.60M
Free cash flow
$165.10M
Fetching…
Sources
Revenue
$1.21B
Net income
$188.30M
Diluted EPS
1.32
Operating cash flow
$295.33M
Free cash flow
$284.44M
Fetching…
Sources
Revenue
$1.15B
Net income
$177.34M
Diluted EPS
1.26
Operating cash flow
$231.21M
Free cash flow
$202.51M
Fetching…
Sources
Revenue
$1.10B
Net income
$156.79M
Diluted EPS
1.12
Operating cash flow
$204.69M
Free cash flow
$188.73M
Fetching…
Sources
Revenue
$1.03B
Net income
$167.96M
Diluted EPS
1.20
Operating cash flow
$203.03M
Free cash flow
$185.70M
Fetching…
Sources
Revenue
$1.01B
Net income
$139.69M
Diluted EPS
1.00
Operating cash flow
$205.62M
Free cash flow
$189.54M
Fetching…
Sources
Is it cheap or expensive?
Fair value $503.91 vs current price $326.35
Wall Street consensus is the average analyst price target: $390.70 (-22.5% lower than our fair-value estimate).
Our most-likely fair value is $503.91 a share — about 54.4% above today's price of $326.35, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $2.3B. Interest coverage 7.8x.
Net debt
$2.30B
Interest coverage
7.85x
HEICO Corporation's profit covers its interest bill about 7.8 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
HEI
BASELINE
HEICO Corporation
Total debt $2.54B Interest coverage 7.85x This is the baseline the peer rows are being compared against.
Total debt $33.49B Interest coverage 2.66x -66% vs HEI Carries about 2.9x less debt cushion than HEI.
Total debt $4.66B Interest coverage 14.11x +80% vs HEI Carries about 1.8x more debt cushion than HEI.
Total debt $1.15B Interest coverage 14.79x +88% vs HEI Carries about 1.9x more debt cushion than HEI.
Total debt $1.38B Interest coverage 10.48x +34% vs HEI Carries about 1.3x more debt cushion than HEI.
Total debt $934.90M Interest coverage 4.55x -42% vs HEI Carries about 1.7x less debt cushion than HEI.
What you should know
The case for and against HEI
3 Rewards
1 Risk
Rewards
-
Revenue grew 15.4% last year.
-
Returns 17.7% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 1094.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
54.39x
Forward P/E
45.15x
P/B
9.22x
P/S
8.81x
EV/EBITDA
32.97x
PEG ratio
2.14x
Profitability
How much profit each dollar creates
Gross margin
40.4%
Operating margin
25.1%
Net margin
16.4%
ROE
17.7%
ROA
8.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.45x
Current ratio
2.72x
Quick ratio
1.11x
Total debt
$2.54B
Total cash
$240.96M
Growth
How the business has been compounding
Revenue TTM
$5.18B
Revenue 5Y CAGR
24.5%
EPS TTM
6.00
EPS 5Y CAGR
24.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.11B
Free CF TTM
$861.38M
FCF margin
16.6%
Dividend
Shareholder payout
Yield
0.1%
Payout ratio
4.2%
Last ex-div date
2026-07-01