HEI.A

Heico

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Industrials

industry

Aerospace & Defense

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/26/26

Business Summary

HEI.A operates as a specialized aerospace and defense supplier, generating cash by producing highly engineered components and replacement parts that are critical to aircraft and defense systems. Its model benefits from long product lifecycles and recurring aftermarket demand, which typically carry higher margins than original equipment sales. The company monetizes technical expertise and regulatory approvals that create switching costs for customers who prioritize reliability and certification over price. Over time, this produces durable cash flow streams tied to fleet maintenance, defense budgets, and mission-critical applications rather than discretionary spending cycles.

 


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VALUATION

P/E

43.5

Market Cap ($M USD)

$34,257

Forward P/E

-

PEG

2.5

PRICE TO SALES

6.7

PRICE TO BOOK

6.8

EV / EBITDA

29

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

0.10%

Annual Payout

$0.24

Payout Ratio

4.70%

Consecutive Years of Dividend Growth

8

5-Year Dividend Growth Rate

8.40%

Financial Health & Profitability

Earnings Per Share

$5.12

Next Year EPS Growth Estimate

-

Next Year Revenue Growth Estimate

8.50%

Return on Equity (ROE)

15.80%

FREE CASH FLOW

Operating Margin

22.70%

Debt-to-Equity

0.6

Piotroski F-Score

7

Altman Z-Score

6.9

Return on Invested Capital (ROIC)

12.00%

Current Ratio

3.1

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Analyze HEI.A on TradingView

Gainseekers Quantitative Analysis

Summary

At 43.5x earnings and a PEG of 2.5, the market is clearly pricing HEI.A as a premium compounder rather than a value play, and it is not cheap by any traditional metric. The absence of a Forward P/E combined with EPS Next Year of $5.12 versus current EPS of 29 creates visibility concerns, yet the Altman Z-Score of 6.9 signals extremely low bankruptcy risk and strong balance sheet stability. A 6.8x Price/Book and 6.7x Price/Sales confirm investors are paying up for quality, not distress. This is a financially sound operator with fortress-level solvency, but the valuation leaves little room for operational disappointment.

AI Exposure / Tech Reliance

As an Aerospace & Defense company, HEI.A operates in a sector increasingly dependent on advanced electronics, avionics, and precision components that benefit directly from AI-enabled systems. The industry’s modernization cycle structurally favors suppliers that can integrate next-generation technologies into defense and aerospace platforms. Its positioning in Industrials provides resilience, as defense demand tends to be less cyclical and more policy-driven than consumer technology markets.

The Bull Case

A GARP investor would be drawn to the combination of a 12.00% ROIC and a 15.80% operating margin, which signal disciplined capital allocation and solid operating efficiency in a capital-intensive industry. The Piotroski F-Score of 7 reinforces that the company’s financial condition is fundamentally strong, not deteriorating, while a 3.1 current ratio and 22.70% Debt/Equity reflect a conservatively structured balance sheet. An 8.50% Return on Equity, though not explosive, is supported by manageable leverage rather than financial engineering. Add in an Altman Z-Score of 6.9 and modest 0.6 yield with a payout ratio of $0.24, and you have a business that retains capital for reinvestment while remaining financially secure—exactly the profile long-duration institutional capital prefers.

The Bear Case

The valuation is the primary structural risk: a 43.5 P/E and 2.5 PEG ratio imply high expectations that may not be matched by future growth, especially with Sales Growth Next Year not provided and Forward P/E absent. A Short % of Float at 8.40% indicates a meaningful cohort of investors is betting against the stock, likely on multiple compression rather than insolvency. Price/Sales at 6.7 and Price/Book at 6.8 leave no margin of safety if margins compress from the current 15.80% level. Even with moderate leverage, any earnings normalization could trigger a sharp rerating given how much optimism is embedded in today’s multiple.

Market Sentiment & Smart Money

Short Interest %

0.80%

Analyst Consensus

2.33

Average Analyst Price Target

$279.00

Institutional Ownership %

83.30%

1-Year Beta

0.93

Insider Buying % (6 Mo)

10.80%%

Distance to 52-Week High

78.60%

Distance to 52-Week Low

116.90%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.