📊 HEI-A Key Takeaways
Is HEI-A a Good Investment? Thesis Analysis
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.
Why Buy 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)
HEI-A Investment Risks to Consider
- 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
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
HEI-A Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.06x current ratio provides a solid financial cushion.
HEI-A Profitability Ratios
HEI-A vs Default Sector
How HEICO CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HEI-A Overvalued or Undervalued?
Based on fundamental analysis, HEICO CORP has mixed fundamental signals relative to the Default 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.
HEI-A Balance Sheet & Liquidity
HEI-A 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HEI-A Quarterly 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.
HEI-A Capital Allocation
HEI-A SEC 10-K & 10-Q Filing 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 an AI rating of HOLD with 68% 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.
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.
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 68% 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: 15%), net margin of 16.1% (sector avg: 12%). 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 Default stocks?
Vs Default sector averages: Net margin 16.1% (avg: 12%), ROE 4.2% (avg: 15%), current ratio 3.06 (avg: 1.8).