Heico Corp (HEI)

Price$295.78Cached quoteAs of 2026-10-08 03:49 UTC

AI: Overvalued

Price checkThe shares demand exceptional long-term growth, leaving little room for ordinary execution.

Trailing diluted earnings are about $5.60 per share, so HEI trades near 63 times recent earnings. Free cash flow—cash left after running the business and buying long-lived assets—was about $926 million across the latest four reported quarters, roughly 54 times on an equivalent per-share basis. A simple reverse check suggests the valuation needs about 17%-19% annual earnings growth for ten years and a still-high 30-times ending multiple to support a 9%-10% annual return. That burden supports an Overvalued verdict.

Big pictureHEICO has compounded sales and cash strongly, but aviation exposure still makes demand cyclical.

From fiscal 2020 through 2025, revenue rose from $1.79 billion to $4.49 billion, about 20% annually, while diluted earnings per share climbed from $2.29 to $4.90, about 16% annually. Free cash flow rose from roughly $386 million to $861 million, about 17% annually. Fiscal 2020 also showed cyclicality: revenue fell 13%, yet operating cash flow remained $409 million. That combination points to strong cash durability, but commercial-airline activity can still produce meaningful swings in demand.

Business strengthRecent growth is broad and profitable, while leverage remains manageable despite heavy acquisition spending.

In fiscal 2026's second quarter, sales rose 25%, operating income 41%, and net income 49%; organic sales growth exceeded 18%, so acquisitions were not the only driver. Operating margin improved to 25.5% from 22.6%. At April 30, net debt was about $2.37 billion and management's net-debt-to-EBITDA ratio was 1.74 times; EBITDA is a rough cash-earnings measure before interest, taxes, depreciation and amortization. Current assets were about 2.9 times current liabilities. The counterweight is $4.20 billion of goodwill, roughly 44% of assets, reflecting acquisition dependence.

What could change the storyContinued high organic growth could justify the premium; slower growth or debt-heavy deals would not.

Capital allocation is acquisition-led: fiscal 2025 dividends consumed under 4% of free cash flow, while no open-market buybacks occurred in fiscal 2023-2025. Basic weighted shares rose about 0.4% in 2025, so dilution has been modest. The bull case requires organic and per-share earnings growth to stay near the high teens while leverage remains around current levels. The bear case strengthens if growth settles near the low teens or net debt climbs above roughly 2.5 times cash earnings, because the current 60-plus-times earnings multiple could compress sharply.

AI: News

Record second-quarter resultsSecond-quarter results sharply beat expectations as both major business groups delivered strong organic growth.

On May 27, HEICO reported fiscal second-quarter revenue of $1.376 billion, up 25%, and net income of $233.8 million, up 49%. Organic sales—growth excluding acquisitions—exceeded 18%, while operating margin rose to 25.5% from 22.6%. Earnings per share of $1.66 beat the cited $1.33 analyst estimate by roughly 25%. Investing.com reported the shares up about 12% in May 28 premarket trading. The timing supports a market reaction to the surprise, though later moves can reflect other factors.

June acquisition waveTwo June deals expanded defense and electronic niches, adding growth but increasing integration and purchase-price risk.

On June 3, HEICO bought 80% of Cook Defence, a supplier of armored-vehicle track systems, with terms undisclosed. On June 10, Exxelia bought 90% of CalRamic, a high-voltage ceramic-capacitor maker; HEICO called it its fifth acquisition of the fiscal year. Management said both deals should add to earnings within a year. The opportunity is more defense and specialized-electronics exposure; the uncertainty is the undisclosed purchase prices and rising goodwill.

Funding capacity expandedHEICO expanded long-term funding capacity, preserving acquisition flexibility while locking in meaningful interest costs.

On June 12, HEICO enlarged its unsecured revolving credit line to $2.2 billion and extended maturity to 2031. On July 16, it issued $550 million of 4.95% notes due 2031 and $650 million of 5.40% notes due 2036, using proceeds to repay revolving-credit borrowings. This does not by itself mean more net debt, but it lengthens funding and frees bank capacity for acquisitions. The trade-off is several years of fixed interest expense on acquisition financing.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$4.49B	$3.86B	$2.97B	$2.21B	$1.87B	$1.79B	$2.06B	$1.78B	$1.52B	$1.38B	$1.19B	$1.13B	$1.01B	$897.3M	$764.9M	$617.0M	$538.3M	$582.3M
Gross profit	$1.79B	$1.50B	$1.15B	$862.8M	$727.4M	$682.1M	$813.8M	$690.7M	$574.7M	$515.5M	$434.2M	$398.3M	$371.2M	$327.4M	$274.4M	$222.3M	$181.0M	$210.5M
Gross margin	39.83%	38.93%	38.86%	39.07%	38.99%	38.17%	39.59%	38.85%	37.69%	37.46%	36.53%	35.18%	36.80%	36.49%	35.88%	36.04%	33.63%	36.15%
Research & development	$120.9M	$111.3M	$95.8M	$76.1M	$68.9M	$65.6M	$66.6M	$57.5M	$46.5M	$44.7M	$38.7M	$37.4M	$32.9M	$30.4M	$25.4M	$22.7M	$19.7M	—
Operating expenses	$3.47B	$3.03B	$2.34B	$1.71B	$1.47B	$1.41B	$1.60B	$1.40B	$1.22B	$1.11B	$959.0M	$928.9M	$825.2M	$734.1M	$626.5M	$507.8M	$450.0M	$476.6M
Operating income	$1.02B	$824.5M	$625.3M	$496.8M	$392.9M	$376.6M	$457.1M	$376.2M	$306.7M	$265.3M	$229.7M	$203.4M	$183.6M	$163.3M	$138.4M	$109.2M	$88.3M	$105.8M
Operating margin	22.72%	21.37%	21.07%	22.50%	21.06%	21.08%	22.24%	21.16%	20.11%	19.28%	19.32%	17.96%	18.20%	18.20%	18.10%	17.69%	16.40%	18.17%
EBITDA	$1.22B	$999.8M	$755.4M	$593.2M	$485.9M	$465.2M	$540.6M	$453.4M	$371.5M	$325.6M	$277.6M	$251.1M	$220.4M	$193.9M	$157.0M	$126.8M	$103.2M	$120.8M
EBITDA margin	27.09%	25.92%	25.45%	26.86%	26.05%	26.03%	26.30%	25.51%	24.36%	23.66%	23.35%	22.18%	21.85%	21.61%	20.52%	20.55%	19.18%	20.75%
Net income	$690.4M	$514.1M	$403.6M	$351.7M	$304.2M	$314.0M	$327.9M	$259.2M	$186.0M	$156.2M	$133.4M	$121.3M	$102.4M	$85.1M	$72.8M	$54.9M	$44.6M	$48.5M
Net profit margin	15.39%	13.33%	13.60%	15.92%	16.31%	17.57%	15.95%	14.58%	12.20%	11.35%	11.22%	10.71%	10.15%	9.49%	9.52%	8.90%	8.29%	8.33%
Basic EPSper basic share	$4.97	$3.71	$2.94	$2.59	$2.25	$2.33	$2.45	$1.96	$1.41	$1.19	$1.60	$7.28	$6.16	$5.16	$4.48	$4.28	$4.36	$5.92
Diluted EPSper diluted share	$4.90	$3.67	$2.91	$2.55	$2.21	$2.29	$2.39	$1.90	$1.37	$1.17	$1.57	$7.20	$6.12	$5.12	$4.40	$4.16	$4.24	$5.68

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈7.17%of listed shares

MENDELSON LAURANS A3.95M shares · Jul 15, 2025

View holders

Top 20 reported holders of HEI
Holder	% owned
MENDELSON LAURANS A	≈7.17%3.95M shares
BlackRock, Inc.	≈7.12%3.93M shares
PRICE T ROWE ASSOCIATES INC /MD/	≈5.80%3.2M shares
Capital International Investors	≈5.23%2.89M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈4.06%2.24M shares
MENDELSON ERIC A	4.03%2.23M shares
STATE STREET CORP	≈3.04%1.68M shares
Capital World Investors	≈3.03%1.67M shares
FMR LLC	≈2.62%1.45M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈2.52%1.39M shares
UBS Group AG	≈2.48%1.37M shares
MORGAN STANLEY	≈2.15%1.19M shares
GEODE CAPITAL MANAGEMENT, LLC	≈1.41%777.71K shares
Nuveen, LLC	≈1.30%719.32K shares
TWO SIGMA INVESTMENTS, LP	≈1.09%602.03K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	≈1.09%601.49K shares
Balyasny Asset Management L.P.	≈1.02%565.12K shares
FEDERATED HERMES, INC.	≈1.02%563.81K shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	≈1.00%550.94K shares
AMERICAN CENTURY COMPANIES INC	≈0.95%521.99K shares

Percentages use 55.17M shares of this listed class outstanding on May 27, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys21$4.44M disclosed value

Sells (SEC code S)12$56.43M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 10, 2026Form 4	Rowen Bradley KChief Accounting Officer	SellClass A Common Stock	1.3K	$241.63	$320.4K	0
Apr 15, 2026Form 4	Neitzel JulieDirector	SellClass A Common Stock	676	$223.00	$150.7K	0
Mar 4, 2026Form 4	CHERUVATATH NANDAKUMARDirector	BuyClass A Common Stock	4.1K	$244.95	$999.9K	4.1K
Oct 21, 2025Form 4	Hildebrandt Mark HDirector	BuyClass A Common Stock · indirect	400	$248.76	$99.5K	1.2K
Oct 10, 2025Form 4	Fine Carol F.Director	BuyClass A Common Stock · indirect	672	$243.93	$163.9K	672

Review ownership filings at SEC.gov ↗

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Heico Corp (HEI)

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