HEICO CORP (HEI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HEI • US4228061093
330.91 USD
-1.05 (-0.32%)
At close: Jan 30, 2026
330.911 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, HEI scores 7 out of 10 in our fundamental rating. HEI was compared to 73 industry peers in the Aerospace & Defense industry. While HEI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HEI is valued quite expensively, but it does show have an excellent growth rating. This makes HEI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- HEI had positive earnings in the past year.
- HEI had a positive operating cash flow in the past year.
- Each year in the past 5 years HEI has been profitable.
- HEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.12%, HEI belongs to the top of the industry, outperforming 83.56% of the companies in the same industry.
- HEI's Return On Equity of 16.04% is fine compared to the rest of the industry. HEI outperforms 79.45% of its industry peers.
- The Return On Invested Capital of HEI (11.03%) is better than 86.30% of its industry peers.
- HEI had an Average Return On Invested Capital over the past 3 years of 9.64%. This is in line with the industry average of 8.65%.
- The 3 year average ROIC (9.64%) for HEI is below the current ROIC(11.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.04% | ||
| ROIC | 11.03% |
ROA(3y)6.83%
ROA(5y)7.56%
ROE(3y)14.33%
ROE(5y)13.99%
ROIC(3y)9.64%
ROIC(5y)10.07%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.39%, HEI belongs to the top of the industry, outperforming 93.15% of the companies in the same industry.
- In the last couple of years the Profit Margin of HEI has declined.
- HEI has a better Operating Margin (22.72%) than 91.78% of its industry peers.
- HEI's Operating Margin has improved in the last couple of years.
- HEI's Gross Margin of 39.83% is fine compared to the rest of the industry. HEI outperforms 79.45% of its industry peers.
- In the last couple of years the Gross Margin of HEI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.72% | ||
| PM (TTM) | 15.39% | ||
| GM | 39.83% |
OM growth 3Y0.33%
OM growth 5Y1.51%
PM growth 3Y-1.13%
PM growth 5Y-2.61%
GM growth 3Y0.65%
GM growth 5Y0.86%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEI is still creating some value.
- The number of shares outstanding for HEI has been increased compared to 1 year ago.
- HEI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HEI has an improved debt to assets ratio.
2.2 Solvency
- HEI has an Altman-Z score of 8.33. This indicates that HEI is financially healthy and has little risk of bankruptcy at the moment.
- HEI has a Altman-Z score of 8.33. This is in the better half of the industry: HEI outperforms 78.08% of its industry peers.
- The Debt to FCF ratio of HEI is 2.52, which is a good value as it means it would take HEI, 2.52 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 2.52, HEI belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
- HEI has a Debt/Equity ratio of 0.50. This is a neutral value indicating HEI is somewhat dependend on debt financing.
- The Debt to Equity ratio of HEI (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 8.33 |
ROIC/WACC1.09
WACC10.11%
2.3 Liquidity
- HEI has a Current Ratio of 2.83. This indicates that HEI is financially healthy and has no problem in meeting its short term obligations.
- HEI has a Current ratio of 2.83. This is comparable to the rest of the industry: HEI outperforms 53.42% of its industry peers.
- A Quick Ratio of 1.28 indicates that HEI should not have too much problems paying its short term obligations.
- HEI has a Quick ratio of 1.28. This is in the lower half of the industry: HEI underperforms 61.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
- HEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.29%, which is quite impressive.
- Measured over the past years, HEI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.50% on average per year.
- Looking at the last year, HEI shows a quite strong growth in Revenue. The Revenue has grown by 16.26% in the last year.
- The Revenue has been growing by 20.21% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)34.29%
EPS 3Y24.45%
EPS 5Y16.5%
EPS Q2Q%34.84%
Revenue 1Y (TTM)16.26%
Revenue growth 3Y26.64%
Revenue growth 5Y20.21%
Sales Q2Q%19.31%
3.2 Future
- HEI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.60% yearly.
- Based on estimates for the next years, HEI will show a quite strong growth in Revenue. The Revenue will grow by 10.46% on average per year.
EPS Next Y13.62%
EPS Next 2Y13.09%
EPS Next 3Y13.52%
EPS Next 5Y18.6%
Revenue Next Year11.72%
Revenue Next 2Y9.93%
Revenue Next 3Y9.05%
Revenue Next 5Y10.46%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- HEI is valuated quite expensively with a Price/Earnings ratio of 67.40.
- Compared to the rest of the industry, the Price/Earnings ratio of HEI is on the same level as its industry peers.
- HEI is valuated expensively when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 59.26 indicates a quite expensive valuation of HEI.
- HEI's Price/Forward Earnings is on the same level as the industry average.
- HEI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.4 | ||
| Fwd PE | 59.26 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEI is on the same level as its industry peers.
- 64.38% of the companies in the same industry are more expensive than HEI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.48 | ||
| EV/EBITDA | 39.52 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HEI does not grow enough to justify the current Price/Earnings ratio.
- HEI has an outstanding profitability rating, which may justify a higher PE ratio.
- HEI's earnings are expected to grow with 13.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.95
PEG (5Y)4.08
EPS Next 2Y13.09%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.07%, HEI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.34, HEI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.07, HEI pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
- On average, the dividend of HEI grows each year by 7.53%, which is quite nice.
- HEI has paid a dividend for at least 10 years, which is a reliable track record.
- As HEI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.53%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- HEI pays out 4.63% of its income as dividend. This is a sustainable payout ratio.
- HEI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.63%
EPS Next 2Y13.09%
EPS Next 3Y13.52%
HEICO CORP / HEI FAQ
What is the ChartMill fundamental rating of HEICO CORP (HEI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to HEI.
Can you provide the valuation status for HEICO CORP?
ChartMill assigns a valuation rating of 3 / 10 to HEICO CORP (HEI). This can be considered as Overvalued.
Can you provide the profitability details for HEICO CORP?
HEICO CORP (HEI) has a profitability rating of 8 / 10.
Can you provide the financial health for HEI stock?
The financial health rating of HEICO CORP (HEI) is 6 / 10.
What is the earnings growth outlook for HEICO CORP?
The Earnings per Share (EPS) of HEICO CORP (HEI) is expected to grow by 13.62% in the next year.