Quality Investor

HEICO Corporation

Rank #363Capital ReturnWatchlistCompare with other stocks

HEI-A · NYSE · Industrials

HEICO Corporation (HEI-A) — Rank #363 by gross profitability (GP/assets 0.18) · ROE 14.0% · Piotroski F-Score N/A.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

$33.59B

P/E (annual)

—

P/S (annual)

7.5

P/B

6.8

P/OCF (annual)

36.0

Shareholder Yield

-0.3%

Employees

11,100

Industry

Aerospace & Defense

Exchange

NYSE

11/11

Flags passed

HEI-A passes 11/11 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    No valuation convergence

Strengths Operating leverage expanding · Sequential beat (rev + EPS)

No data SBC and margin — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 45th percentile of 21 SIC 37 peers

Gross profitability (GP / assets)

0.18

Primary signal (Novy-Marx).

45th pctl of 21 SIC 37 peers

Return on equity

14.0%

Gross margin

39.8%

90th pctl of 21 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 25% above net income

Free cash flow

$861.38M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

24.8%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

—

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $237.45M

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.85

63rd pctl of 20 SIC 37 peers (best = lowest)

Current ratio

2.72×

75th pctl of 21 SIC 37 peers

Quick ratio

0.97×

Net cash

$237.45M

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

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

Capital allocation quality

Composite score

3.3 / 5

Good
Share count trend
0.4%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency
10 yr5/5 Strong
Net debt trajectory(deleveraging)
0.7%3/5 Good

Lifecycle Phase History

20202025
Decline
Capital Return
Hypergrowth
Op. Leverage

Price History

HEI-A+98.7% · +14.7% CAGRSPY+82.9% · +12.8% CAGR