HEICO CORP NEW (HEI)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-09
$312.32-1.20%
Close 2026-09-09 · 1-day change
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-09
Intact: The reason to own it still holds.
HEICO grows revenue strongly, from $1.03B in 2025-Q1 to $1.38B in 2026-Q2. The company raises dividends, showing strong cash flow and shareholder focus. Profit margins remain healthy despite sector headwinds. Analysts expect about 13% revenue growth next year.
HEICO trades at a high price-to-earnings ratio of 63.9, well above peers at 38.2. If aerospace demand weakens or acquisitions fail to deliver, growth could slow. Dividend hikes may not continue if cash flow weakens.
The market prices in about 13% revenue growth and a premium valuation. Our view aligns with this growth but notes the stock is expensive compared to peers and recent cash flow yield is low.
Breaks if: Dividend growth stops or is cut
Breaks if: Profit margins decline more than 5 percentage points from current levels
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth through sales increases and acquisitions. The current thesis state is stable, supported by strong recent financial performance, but faces sector headwinds.
The market currently prices HEI at a premium compared to its peers, indicating that investors expect continued strong performance. The expectations gap is minimal, suggesting that the market is not overly aggressive in its assumptions.
Fundamentals are likely to remain strong as management focuses on increasing net sales and maintaining cash flow. Recent results show positive trends, but there is a moderate risk due to potential sector challenges.
The thesis hinges on the performance of sector bellwethers like SPCX, GE, and RTX. If these companies continue to perform well, it could support HEI's growth; however, any negative guidance from them could impact HEI's momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports growth in net sales. Record profits and strong guidance reinforce the positive outlook for the Flight Support segment.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 10% next year
Drive organic growth and acquisitions to increase net sales in both Flight Support and Electronic Technologies Groups.
Stated as a priority in 3 of last 3 quarters. Net sales grew from $1.148B in 2025-Q3 to $1.413B in 2026-Q3 (+23%). Flight Support Group sales rose 18% and Electronic Technologies Group sales rose 36% over the same period. Management consistently emphasized organic growth and acquisitions supporting this trajectory, which is delivering.
“For the remainder of fiscal 2026, we expect increased net sales at both the Flight Support Group and Electronic Technologies Group supported by underlying demand and recent acquisitions.”
“For the remainder of fiscal 2026, we expect increased net sales at both the Flight Support Group and Electronic Technologies Group supported by underlying demand and recent acquisitions.”
“Looking ahead to fiscal 2026, we anticipate net sales growth across both the Flight Support Group and Electronic Technologies Group, driven by organic growth and recent acquisitions.”
Overall, HEI's position is solid, but it must navigate sector dynamics carefully. Not investment advice.