📊 HEI-A Key Takeaways
Is Heico Corp. (HEI-A) a Good Investment?
HEICO demonstrates solid operational efficiency (22.1% operating margin) and strong free cash flow generation ($165.1M), but faces concerning headwinds with flat revenue growth and declining net income (-7.4% YoY). The company's exceptionally low returns on equity (4.2%) and assets (2.1%) indicate structural capital inefficiency despite healthy margins, limiting upside potential.
HEICO’s fundamentals show resilient profitability with strong operating and net margins, solid free cash flow generation, and ample liquidity alongside moderate leverage and healthy interest coverage. However, revenue is flat and net income declined YoY, and reported margin/EPS figures contain inconsistencies that reduce confidence in the quality of growth. Upside depends on a return to organic growth and sustained cash conversion while managing financing costs.
Why Buy Heico Corp. Stock? HEI-A Key Strengths
- Strong operating margin of 22.1% demonstrates effective cost management and operational efficiency
- Robust free cash flow generation ($165.1M) with 14% FCF margin provides financial flexibility
- Excellent liquidity position (3.06x current ratio) with moderate leverage (0.56x debt/equity) and solid interest coverage (8.8x)
- Strong operating and net margins (~22%/16%)
- Robust free cash flow (14% FCF margin) with light capex
- Healthy liquidity (3.06x current) and moderate leverage (0.56x D/E)
HEI-A Stock Risks: Heico Corp. Investment Risks
- Revenue stagnation at 0% YoY growth with declining net income (-7.4% YoY) signals lack of business momentum
- Critically low returns on equity (4.2%) and assets (2.1%) indicate poor capital efficiency and limited profit generation relative to asset base
- Minimal insider buying activity and very low capex ($13.5M) suggest management lacks confidence in growth opportunities
- Flat revenue and declining net income YoY
- Data inconsistencies (gross vs operating margin, EPS vs NI) cloud trend quality
- Higher interest costs or acquisition-driven dilution could pressure returns
Key Metrics to Watch
- Revenue growth rate and order backlog trends in aerospace/defense sector
- Return on equity trajectory - address structural inefficiency causing current 4.2% level
- Capital allocation decisions: whether FCF is deployed toward growth investments, dividends, or continued share buybacks
- Organic revenue growth (YoY)
- FCF conversion (FCF/Net Income)
Heico Corp. (HEI-A) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.06x current ratio provides a solid financial cushion.
HEI-A Profit Margin, ROE & Profitability Analysis
HEI-A vs Automotive Sector: How Heico Corp. Compares
How Heico Corp. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Heico Corp. Stock Overvalued? HEI-A Valuation Analysis 2026
Based on fundamental analysis, Heico Corp. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Heico Corp. Balance Sheet: HEI-A Debt, Cash & Liquidity
HEI-A Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Heico Corp.'s revenue has grown significantly by 118% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.91 reflects profitable operations.
HEI-A Revenue Growth, EPS Growth & YoY Performance
HEI-A Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | $168.0M | $1.20 |
| Q3 2025 | $992.2M | $136.6M | $0.97 |
| Q2 2025 | $955.4M | $123.1M | $0.88 |
| Q1 2025 | $896.4M | $114.7M | $0.82 |
| Q3 2024 | $722.9M | $102.0M | $0.74 |
| Q2 2024 | $687.8M | $105.1M | $0.76 |
| Q1 2024 | $620.9M | $93.0M | $0.67 |
| Q3 2023 | $569.5M | $82.5M | $0.60 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Heico Corp. Dividends, Buybacks & Capital Allocation
HEI-A SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Heico Corp. (CIK: 0000046619)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HEI-A
What is the AI rating for HEI-A?
Heico Corp. (HEI-A) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 65% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HEI-A's key strengths?
Claude: Strong operating margin of 22.1% demonstrates effective cost management and operational efficiency. Robust free cash flow generation ($165.1M) with 14% FCF margin provides financial flexibility. ChatGPT: Strong operating and net margins (~22%/16%). Robust free cash flow (14% FCF margin) with light capex.
What are the risks of investing in HEI-A?
Claude: Revenue stagnation at 0% YoY growth with declining net income (-7.4% YoY) signals lack of business momentum. Critically low returns on equity (4.2%) and assets (2.1%) indicate poor capital efficiency and limited profit generation relative to asset base. ChatGPT: Flat revenue and declining net income YoY. Data inconsistencies (gross vs operating margin, EPS vs NI) cloud trend quality.
What is HEI-A's revenue and growth?
Heico Corp. reported revenue of $1.2B.
Does HEI-A pay dividends?
Heico Corp. pays dividends, with $16.7M distributed to shareholders in the trailing twelve months.
Where can I find HEI-A SEC filings?
Official SEC filings for Heico Corp. (CIK: 0000046619) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HEI-A's EPS?
Heico Corp. has a diluted EPS of $1.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HEI-A a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Heico Corp. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HEI-A stock overvalued or undervalued?
Valuation metrics for HEI-A: ROE of 4.2% (sector avg: 12%), net margin of 16.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy HEI-A stock in 2026?
Our dual AI analysis gives Heico Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HEI-A's free cash flow?
Heico Corp.'s operating cash flow is $178.6M, with capital expenditures of $13.5M. FCF margin is 14.0%.
How does HEI-A compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 16.1% (avg: 6%), ROE 4.2% (avg: 12%), current ratio 3.06 (avg: 1.2).