Heico Corp

Industrials
Aerospace
www.heico.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $36.62B
PE 65
Debt $2.35B
Cash $165.47M
EV $38.81B
FCF $701.53M

Earnings

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Sales & Net Margins

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Earnings	$567.37M
EBIT	$871.05M
ROE	15%
ROA	11%
FCF	$701.53M
Equity	$3.81B
Growth Stability	100%
PE	64.54
PEG	5
PB	9.61
P/FCF	52.2
P/S	9.17
Price/Cash	0
Debt/Equity	0.62
Debt/FCF	3.35
Net Margins	16%
Gross Margins	39%
Op. Margins	22%
Earnings CAGR	13%
Sales Growth YoY	15%
Sales Growth QoQ	2%
Sales CAGR	11%
FCF CAGR	12%
Equity CAGR	17%
Earnings Stability	0.85
Earnings Growth YoY	46%
Earnings Growth QoQ	20%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	20%
FCF CAGR 5Y	8%
Equity CAGR 5Y	16%
Earnings CAGR 3Y	32%
Sales CAGR 3Y	32%
FCF CAGR 3Y	20%
Equity CAGR 3Y	19%
Market Cap	$36.62B
Revenue	$3.99B
Dividend Yield	0%
Payout Ratio	5%
Assets	$7.89B
Total Debt	$2.35B
Cash	$165.47M
Shares Outstanding	138.81M
EV	38.81B
Earnings Score	93%
Moat Score	93%
Safety Score	90%
Final Score	92%
Working Capital	1.48B
Current Ratio	3.4
Gross Profit	$1.56B
Shares Growth 3y	1%
Equity Growth QoQ	3%
Equity Growth YoY	15%

Assets & ROA

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Stockholders Equity & ROE

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Heico is an aerospace and defense supplier that primarily focuses on creating niche replacement parts for commercial aircraft and components for defense products. In commercial aerospace, Heico is the largest independent producer of replacement parts for aircraft, primarily within the engine. In the defense market, the company produces niche subcomponents used in targeting technology as well as simulation equipment, among other things. The company is highly acquisitive, focusing on companies that are generating strong cash flow with the potential for growth.

SEC Filings

Direct access to Heico Corp (HEI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Jan 31
2024
- 10-K Oct 31
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2023
- 10-K Oct 31
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31

Sector Comparison

How does Heico Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Heico Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 13%

Stability 85%

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Heico Corp Discounted Cash Flow

Fully customizable DCF calculator online for Heico Corp.

Years

Calculation mode

= $16B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$702M	$783M	$874M	$975M	$1.1B	$1.2B	$1.4B	$1.5B	$1.7B	$1.9B	$2.1B	$21B
DCF		$712M	$722M	$733M	$743M	$754M	$765M	$776M	$787M	$799M	$810M	$8.1B
Value	$16B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	TTM
Net Margins	11%	11%	12%	15%	16%	18%	16%	16%	14%	13%	16%
ROA	-	13%	12%	14%	15%	11%	11%	12%	9%	11%	11%
ROE	-	15%	15%	17%	19%	16%	13%	13%	13%	14%	15%

Good Net Margins (16.3%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	TTM
Debt over FCF	-	2.1	2.71	1.86	1.38	1.92	0.58	0.67	6.21	3.63	3.35
Debt over Equity	0.41	0.44	0.54	0.35	0.33	0.37	0.1	0.11	0.78	0.6	0.62
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (3.35)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.62)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	CAGR 5Y
Revenue YoY growth	-	16%	11%	17%	16%	-13%	4%	18%	34%	30%	20%
Earnings YoY growth	-	17%	19%	39%	26%	-4%	-3%	16%	15%	27%	13%
Equity YoY growth	-	17%	19%	20%	13%	19%	14%	15%	21%	16%	16%
FCF YoY growth	-	41%	14%	15%	43%	-5%	6%	7%	-8%	54%	8%