# Heico (HEI-A.US)

Canonical: https://gigainvestors.com/s/HEI-A

Analysis as of: 2026-10-16T07:29:00.602Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $231.34 per share; close as of 2026-10-15.

Estimated value: low $82.89 per share, central $106.68 per share, high $124.54 per share. Buy at or below the central value $106.68 per share. Valuation as of 2026-10-16T07:29:00.602Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.20×

- FY2018: 0.21×

- FY2019: 0.22×

- FY2020: 0.21×

- FY2021: 0.21×

- FY2022: 0.22×

- FY2023: 0.22×

- FY2024: 0.22×

- FY2025: 0.23×

- LTM to Jul 2026: 0.24×

### moat: pass

- ROIC, median of available years: 35.3%

- ROIC, second-lowest year: 29.3%

- Typical minus recent gross margin: 2.1 pp

- Typical gross margin (annual median): 42.0%

- Recent gross margin (lower of latest and 3-year median): 39.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.6%

- ROIC including acquisitions, ten-year median: 14.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 35.9%

- FY2017: 30.6%

- FY2018: 39.8%

- FY2019: 41.8%

- FY2020: 36.8%

- FY2021: 35.2%

- FY2022: 35.3%

- FY2023: 23.6%

- FY2024: 29.3%

- FY2025: 32.5%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.20×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.7B

- Net income, five-year total: $2.3B

- Return on incremental invested capital: 87.2%

- Working capital / revenue, annual change: 1.7 pp

- Working capital / revenue, change between three-year averages: 12.9 pp

- Working capital / revenue, final three-year average: 43.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.19×

- FY2022: 1.18×

- FY2023: 1.20×

- FY2024: 1.23×

- FY2025: 1.18×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 35.9% vs 29.3%

- Per-share earnings: 1.26 to 3.67 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.9%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: $28B

- Cumulative retained earnings: $2.8B

- Diluted shares, 10-year annual growth: 2.9%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.3%

- Per-share value change: $2.41

- Per-share value, starting three-year median: $1.26

- Per-share value, ending three-year median: $3.67

- Buybacks concentrated in cheaper years (correlation): 0.19

- Average buyback yield: 0.1%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $4.1B

- Cumulative net income, 10 years: $3.5B

- ROIC, first three-year median: 35.9%

- ROIC, last three-year median: 29.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.17

- FY2017: $1.37

- FY2018: $1.90

- FY2019: $2.39

- FY2020: $2.29

- FY2021: $2.21

- FY2022: $2.55

- FY2023: $2.91

- FY2024: $3.67

- FY2025: $4.90

### accounting: pass

- Sloan accruals: -2.9%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.19×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.6%

- FY2017: -3.5%

- FY2018: -2.6%

- FY2019: -3.7%

- FY2020: -2.7%

- FY2021: -4.0%

- FY2022: -2.8%

- FY2023: -0.6%

- FY2024: -2.1%

- FY2025: -2.9%

## Holders

- [Francois Rochon](https://gigainvestors.com/GC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [C.T. Fitzpatrick](https://gigainvestors.com/VVP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 13.8% a year for ten years · sales +15.4%

Story as of 2026-10-16T09:58:52.391Z; price observation 2026-10-15.

Price needs cash profits to grow 13.8% a year for ten years

- 2025-05-28: HEICO (NYSE:HEI) Reports Q2 Sales Surge to US$1,098M and Net Income Rises to US$157M ([finance.yahoo.com](https://finance.yahoo.com/news/heico-nyse-hei-reports-q2-172532877.html))

### Sales · FY2025–2026

sales +15.4%; source https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm; observed 2025-12-22.

- FY2017: $1.5B 

- FY2018: $1.8B 

- FY2019: $2.1B 

- FY2020: $1.8B 

- FY2021: $1.9B 

- FY2022: $2.2B 

- FY2023: $3.0B 

- FY2024: $3.9B 

- FY2025: $4.5B 

- FY2026: $5.2B 

### Gross margin · FY2025

gross margin 39.8%; source https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm; observed 2025-12-22.

- FY2016: 40.7% 

- FY2017: 40.7% 

- FY2018: 42.1% 

- FY2019: 42.8% 

- FY2020: 41.8% 

- FY2021: 42.7% 

- FY2022: 42.5% 

- FY2023: 42.1% 

- FY2024: 41.8% 

- FY2025: 39.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are USD 4.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm (filed 2025-12-22); FY2025: revenue 4485044000; grossProfit 1786464000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HEI-A.US: HEICO Corporation provides aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment offers jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components and assemblies. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and commercial aircraft surfaces, as well as for avionics and navigation systems, subcomponents, and other military aircraft instruments. The company's Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio frequency (RF) interference shielding and suppression filters; power electronics; power conversion and interface products; interconnection devices; and underwater locator and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; environment connectivity products and molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; radiation assurance, embedded computing, and silicone solutions; test sockets and adapters; and electronic components and rotary joint assemblies. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.

### Why customers stay

Margins ranged from 39.8% to 42.1% during 2023–25; it earns 35.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2023: grossProfit / revenue = 42.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2024: grossProfit / revenue = 41.8%.

- Source: https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm (filed 2025-12-22); FY2025: grossProfit / revenue = 39.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); 10-year return on capital observations [[2016,0.3585920865853365],[2017,0.305675621963943],[2018,0.39755816938635463],[2019,0.4184921844129922],[2020,0.367798434267371],[2021,0.35236483743378766],[2022,0.35316575102141035],[2023,0.23565660111678183],[2024,0.29327114858544],[2025,0.3245618574208641]]; median 0.352765294227599. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 43% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm (filed 2025-12-22); Gross margin observations: [[2021,0.4268144303262828],[2022,0.4251282195259568],[2023,0.42089515027264873]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 22.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2016: growth capex 0; upkeep 30863000; owner earnings 185606000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2017: growth capex 0; upkeep 25998000; owner earnings 224810000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2018: growth capex 0; upkeep 41871000; owner earnings 294553000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2019: growth capex 0; upkeep 28938000; owner earnings 382455000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2020: growth capex 0; upkeep 22940000; owner earnings 379605000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2021: growth capex 0; upkeep 36183000; owner earnings 361056000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2022: growth capex 0; upkeep 31982000; owner earnings 416026000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2023: growth capex 0; upkeep 49434000; owner earnings 484205000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); FY2024: growth capex 0; upkeep 58261000; owner earnings 631179000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm (filed 2025-12-22); FY2025: growth capex 0; upkeep 72886000; owner earnings 813575000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); Dividend observations: [[2016,10724000],[2017,12807000],[2018,15363000],[2019,18691000],[2020,21552000],[2021,23002000],[2022,24466000],[2023,27370000],[2024,29069000],[2025,31968000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm (filed 2025-12-22); FY2025: cash repurchases 22386000 USD.

### Are managers owners

Insiders own 9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HEI-A.US SharesStats.PercentInsiders = 8.981 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm (filed 2025-12-22); rials from suppliers could harm our business.

Our business is affected by the availability and price of the raw materials and component parts that we use to manufacture our products. Our ability to manage inventory and meet delivery requirements may be constrained by our suppliers’ ability to adjust delivery of long-lead time products during times of volatile demand. The supply chains for our business could also be disrupted by external events such as natural disasters, extreme weather events, pandemics, labor disputes, governmental actions and legislative or regulatory changes. For example, tariffs, duties or other trade policy changes affecting the import or export of raw materials or components could increase costs or limit availability. As a result, our suppliers may fail to perform according to specifications when required and we may be unable to identify alternate suppliers or to otherwise mitigate the consequences of their non-performance. Transitions to new suppliers may result in significant costs and delays, including those related to the required recertification of parts obtained from new suppliers with our customers and/or regulatory agencies. Our inability to fill our supply needs could jeopardize our ability to fulfill obligations under customer contracts, which could result in reduced revenues and profits, contract penalties or terminations, and damage to customer relationships and reputation. Further, increased costs of such raw materials or components could reduce our profits if we were unable to pass along such price increases to our customers.

Product specification costs and requirements could cause an increase in our costs to complete contracts.

The costs to meet customer specifications and requirements could result in us having to spend more to design or manufacture products and this could reduce our profit margins on current contracts or those we obtain in the future.

We may incur damages or disruption to our business caused by natural disasters and other factors that may not be covered by insurance.

Several of our facilities, as a result of their locations, could be subject to a catastrophic loss caused by hurricanes, tornadoes, earthquakes, floods, fire, power loss, telecommunication and information systems failure, political unrest or similar events. Our corporate headquarters and facilities located in Florida are particularly susceptible to hurricanes, storms, tornadoes or other natural disasters that could disrupt our operations, delay production and shipments, and result in large expenses to repair or replace the facility or facilities. Should insurance or other risk transfer mechanisms, such as our existing disaster recovery and business continuity plans, be insufficient to recover all costs, we could experience a material adverse effect on our business, financial condition and results of operations.

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### What the price says

The price assumes cash profits grow 13.8% yearly over ten years; actual growth was 14.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-22); Ten-year compound average after fade. Initial solved rate 0.1870239767401941. Price 231.34; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.5385965740172716 → FY2025 5.779421897976146. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $34.41 per share

- 2016-12: $34.76 per share

- 2017-01: $33.95 per share

- 2017-02: $36.33 per share

- 2017-03: $38.40 per share

- 2017-04: $39.23 per share

- 2017-05: $40.10 per share

- 2017-06: $39.71 per share

- 2017-07: $45.47 per share

- 2017-08: $46.50 per share

- 2017-09: $48.77 per share

- 2017-10: $48.70 per share

- 2017-11: $48.58 per share

- 2017-12: $50.59 per share

- 2018-01: $52.68 per share

- 2018-02: $58.00 per share

- 2018-03: $56.76 per share

- 2018-04: $57.72 per share

- 2018-05: $60.84 per share

- 2018-06: $60.95 per share

- 2018-07: $64.75 per share

- 2018-08: $74.50 per share

- 2018-09: $75.50 per share

- 2018-10: $66.66 per share

- 2018-11: $67.52 per share

- 2018-12: $63.00 per share

- 2019-01: $70.03 per share

- 2019-02: $79.99 per share

- 2019-03: $84.06 per share

- 2019-04: $89.43 per share

- 2019-05: $98.26 per share

- 2019-06: $103.37 per share

- 2019-07: $105.39 per share

- 2019-08: $110.36 per share

- 2019-09: $97.31 per share

- 2019-10: $95.27 per share

- 2019-11: $100.44 per share

- 2019-12: $89.53 per share

- 2020-01: $96.15 per share

- 2020-02: $88.33 per share

- 2020-03: $63.90 per share

- 2020-04: $72.33 per share

- 2020-05: $83.95 per share

- 2020-06: $81.24 per share

- 2020-07: $76.55 per share

- 2020-08: $89.38 per share

- 2020-09: $88.66 per share

- 2020-10: $93.50 per share

- 2020-11: $110.75 per share

- 2020-12: $117.06 per share

- 2021-01: $106.31 per share

- 2021-02: $115.76 per share

- 2021-03: $113.60 per share

- 2021-04: $126.28 per share

- 2021-05: $132.46 per share

- 2021-06: $124.18 per share

- 2021-07: $121.29 per share

- 2021-08: $114.24 per share

- 2021-09: $118.43 per share

- 2021-10: $125.68 per share

- 2021-11: $124.20 per share

- 2021-12: $128.52 per share

- 2022-01: $109.70 per share

- 2022-02: $122.92 per share

- 2022-03: $126.83 per share

- 2022-04: $116.64 per share

- 2022-05: $117.09 per share

- 2022-06: $105.38 per share

- 2022-07: $127.68 per share

- 2022-08: $122.58 per share

- 2022-09: $114.62 per share

- 2022-10: $127.30 per share

- 2022-11: $126.78 per share

- 2022-12: $119.85 per share

- 2023-01: $133.68 per share

- 2023-02: $130.15 per share

- 2023-03: $135.90 per share

- 2023-04: $134.23 per share

- 2023-05: $121.85 per share

- 2023-06: $140.60 per share

- 2023-07: $140.35 per share

- 2023-08: $135.43 per share

- 2023-09: $129.22 per share

- 2023-10: $127.13 per share

- 2023-11: $137.41 per share

- 2023-12: $142.44 per share

- 2024-01: $141.47 per share

- 2024-02: $155.59 per share

- 2024-03: $153.94 per share

- 2024-04: $165.85 per share

- 2024-05: $175.66 per share

- 2024-06: $177.52 per share

- 2024-07: $190.11 per share

- 2024-08: $200.09 per share

- 2024-09: $203.76 per share

- 2024-10: $192.01 per share

- 2024-11: $211.13 per share

- 2024-12: $186.08 per share

- 2025-01: $190.33 per share

- 2025-02: $213.16 per share

- 2025-03: $210.97 per share

- 2025-04: $200.93 per share

- 2025-05: $235.84 per share

- 2025-06: $258.75 per share

- 2025-07: $258.09 per share

- 2025-08: $245.01 per share

- 2025-09: $254.09 per share

- 2025-10: $247.73 per share

- 2025-11: $246.97 per share

- 2025-12: $252.43 per share

- 2026-01: $254.59 per share

- 2026-02: $240.11 per share

- 2026-03: $211.09 per share

- 2026-04: $209.02 per share

- 2026-05: $259.81 per share

- 2026-06: $257.91 per share

- 2026-07: $257.28 per share

- 2026-08: $244.17 per share

- 2026-09: $228.33 per share

- 2026-10: $223.05 per share

## Annual estimated value (USD per share)

- FY2016: low $17.36 per share, central $22.46 per share, high $26.24 per share

- FY2017: low $18.34 per share, central $22.96 per share, high $26.77 per share

- FY2018: low $21.80 per share, central $27.62 per share, high $32.23 per share

- FY2019: low $27.60 per share, central $35.98 per share, high $42.07 per share

- FY2020: low $27.25 per share, central $31.85 per share, high $36.63 per share

- FY2021: low $29.28 per share, central $34.81 per share, high $40.45 per share

- FY2022: low $35.17 per share, central $41.87 per share, high $48.63 per share

- FY2023: low $47.35 per share, central $57.00 per share, high $66.28 per share

- FY2024: low $61.79 per share, central $76.08 per share, high $88.63 per share

- FY2025: low $72.13 per share, central $92.81 per share, high $108.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:43.269Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/46619/000004661925000082/hei-20251031.htm); period 2025-10-31, filed 2025-12-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Francois Rochon](https://gigainvestors.com/GC): 735,248 HEI.A shares; USD 189,628,000 reported position value; 6.38% of portfolio; reduce; quarter 2026 Q2.
- [Thomas Gayner](https://gigainvestors.com/MKL): 379,644 HEI.A shares; USD 97,914,000 reported position value; 0.75% of portfolio; hold; quarter 2026 Q2.
- [C.T. Fitzpatrick](https://gigainvestors.com/VVP): 153,718 HEI.A shares; USD 39,645,000 reported position value; 1.21% of portfolio; reduce; quarter 2026 Q2.
- [Wallace Weitz](https://gigainvestors.com/WIM): 204,479 HEI.A shares; USD 52,737,000 reported position value; 3.65% of portfolio; add; quarter 2026 Q2.