HEICO Corporation (HEI) AI Stock Analysis

HEICO Corporation operates through two main segments: Flight Support Group and Electronic Technologies Group. The Flight Support Group manufactures and distributes jet engine and aircraft component replacement parts, thermal insulation blankets, renewable insulation systems, and specialty components for commercial, regional, and general aviation. It also provides repair and overhaul services for jet engines, aircraft components, avionics, instruments, composites, and flight surfaces. The Electronic Technologies Group produces electro-optical infrared simulation and test equipment, electro-optical laser products, microwave power equipment, power conversion products, underwater locator beacons, specialty semiconductors, active antenna systems, and harsh environment connectivity products.

HEICO expanded revenue from $1.87B in FY2021 to $4.49B in FY2025, recording a 5-year revenue CAGR of 20.2% from FY2020 to FY2025. Annual revenue grew 18.4% in FY2022, 34.4% in FY2023, 30.0% in FY2024, and 16.3% in FY2025. Net income increased from $329.8M in FY2021 to $690.4M in FY2025, lifting EPS from $2.20 to $4.91 over the same period. For the trailing twelve months, revenue reached $5.18B with an operating margin of 25.1% and a profit margin of 16.4%. In the latest quarter ended July 31, 2026, quarterly revenue increased 23.1% year-over-year while quarterly earnings expanded 32.5%.

As of July 31, 2026, HEICO held $241.0M in cash and short-term investments against total debt of $2.54B, resulting in net debt of $2.30B. Shareholders' equity stood at $4.95B, with a debt-to-equity ratio of 0.51 and a current ratio of 2.72. For FY2025, operating cash flow reached $934.3M, supporting $72.9M in capital expenditures and generating free cash flow of $861.4M. Capital returned to shareholders in FY2025 included $22.4M in share buybacks and $32.0M in dividends paid.

HEICO trades at a trailing P/E of 51.6x and a forward P/E of 42.6x, compared to 24.8x and 17.2x for the median of its US-listed Industrials peers. The company carries an enterprise value of $38.99B with an EV to EBITDA ratio of 26.6x, above the peer median of 13.9x, and a price-to-sales multiple of 8.4x versus 1.5x for peers. Over the past year, the stock returned 0.9%, trailing the S&P 500 return of 16.8%, though its 5-year return of 122.4% outperformed the index return of 83.0%.

HEICO pays a forward annual dividend of $0.25 per share, yielding 0.08% with a payout ratio of 4.2%. Distributed semiannually, the dividend has been paid for 43 consecutive years and has registered an annualized 5-year dividend growth rate of 7.5%. The last ex-dividend date was July 1, 2026.

Wall Street coverage consists of 11 Strong Buy, 3 Buy, and 10 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $390.70 implies an upside of 26.1% compared to the last close of $309.87 on October 16, 2026. Analysts project FY2026 EPS of $6.36 on revenue of $5.41B, followed by FY2027 estimates of $7.23 EPS and $6.02B in revenue from 20 analysts. HEICO beat EPS estimates in all 4 of its last 4 quarters.

This page is an AI-written research summary of HEICO Corporation (HEI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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