Quality Investor

HEICO Corporation

Rank #386Capital Return

HEI-A · NYSE · Industrials

HEICO Corporation (HEI-A) — Rank #386 by gross profitability (GP/assets 0.18) · ROE 14.0% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000046619 · all metrics point-in-time as of the filing date.

About

HEICO Corporation provides aerospace, defense, and electronic related products and services in the United States and internationally.

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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.

Industry
Aerospace & Defense
Sector
Industrials
State
FL
Filer Category
Large accelerated filer
Fiscal Year End
October 31
Website
heico.com

Price History

HEI-A+108.9% · +15.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$31.18B

P/E (annual)

45.5

P/S (annual)

7.0

P/B

6.3

P/OCF (annual)

33.4

Shareholder Yield

-0.3%

Employees

11,100

Industry

Aerospace & Defense

Exchange

NYSE

Signal Flags

2 green
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 3-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.18
Return on equity
14.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.85
Current ratio
2.72×
Net cash
$237.45M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue

Growth

2/2 pass
Revenue growth
16.3%
Piotroski F-Score
N/A
Share dilution
0.4%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

15.9%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.4% — per-share value needs a total required return of 16.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 17.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

11.1%

r = 10% (base)

15.9%

r = 12%

20.0%

Net debt / market cap: -0.8%

Base FCF: $861.4M3Y mean FCF: $624.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

53.3xExpensive
32.0xmed 49.4x57.3x

P / S

Price / revenue per share

8.2xExpensive
4.7xmed 6.6x9.4x

P / B

Price / book value per share

8.5xExpensive
5.9xmed 7.3x8.5x

P / GP

Price / gross profit per share

20.6xExpensive
4.8xmed 17.0x24.0x

P / FCF

Price / free cash flow per share

42.7xExpensive
29.0xmed 40.7x48.1x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.18

Primary signal (Novy-Marx).

38th pctl of 22 SIC 37 peers

Return on equity

14.0%

Gross margin

39.8%

86th pctl of 22 SIC 37 peers

Revenue growth (YoY)

16.3%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

26.6%

Revenue CAGR (5Y)

20.2%

Earnings CAGR (3Y)

25.2%

FCF CAGR (3Y)

25.5%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.85

70th pctl of 21 SIC 37 peers (best = lowest)

Current ratio

2.72×

71st pctl of 22 SIC 37 peers

Quick ratio

0.97×

Net cash

$237.45M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$861.38M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.25

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

Stock-based comp intensity.

Dividend safety

Composite score

4.2 / 5

Strong
Payout ratio
4.6%5/5 Strong
FCF coverage
26.95×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.85 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Decline
Capital Return
Hypergrowth
Op. Leverage