| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 14 | 51.5x | 17.3x | Bottom tier | |
Growth | 84 | 20.7% | 7.1% | Top tier | |
Quality | 80 | 14.5% | 4.5% | Top tier | |
Safety | 78 | 1.6x | 2.6x | Top tier | |
Capital Return | 67 | 0.08% | 0.06% | Top tier | |
Momentum | 60 | -1.8% | -1.6% | Around median | |
Sentiment | 85 | 15 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
81% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
HEICO Corporation operates through two operating groups serving the aviation, defense, space, electronics, and industrial technology markets. The Flight Support Group generated revenue of $947.8 million in the third quarter of fiscal 2026 from aftermarket parts, distribution, specialty products, and component repair, benefiting from PMA alternatives and DER repairs aimed at reducing customer costs. The Electronic Technologies Group generated $483.5 million from electronic products and components for aviation, defense, and industrial applications, with contributions from acquired companies.
In the third quarter of fiscal 2026, HEICO's revenue rose 23% to a record $1.413 billion, operating income increased 34% to $355.2 million, while net income grew 33% to $235.4 million and diluted earnings per share rose to $1.67 from $1.26. According to EDGAR data, gross profit was approximately $581.0 million, equivalent to a gross margin of about 41.1%, while the consolidated operating margin was approximately 25.1% and the net income margin was approximately 16.7%. Earnings before interest, taxes, depreciation, and amortization also increased 31% to $415.2 million.
Growth came from a balanced mix of organic demand and acquisitions: the Flight Support Group recorded organic growth of 12% and its revenue grew 18%, while the Electronic Technologies Group recorded organic growth of 18% and its revenue grew 36%. The Flight Support Group's operating margin improved to 25.9% from 24.7%, and the Electronic Technologies Group's margin improved to 26.0% from 22.8%. The company generated operating cash flow of $345.3 million, up 49% and equal to approximately 147% of quarterly net income.
The stock has a consensus "Buy" rating, with an average target of $403.5 and a wide range between $350 and $491; the average is approximately 7.1% above the 52-week range high of $376.86, while the annual range extends from $256.11 to $376.86. In contrast, an August 25, 2026 earnings analysis cited a price-to-earnings ratio of 61.1 times and a free cash flow yield of 1.9%, so the valuation assumes continued earnings growth, successful integration of acquisitions, and margin expansion, despite management maintaining its fiscal 2026 Electronic Technologies Group margin guidance at 22% to 24%.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Revenue rose 23% to $1.413 billion, supported by consolidated organic growth of 14% and contributions from acquisitions. Operating income grew 34% to $355.2 million, and net income increased 33% to $235.4 million. Diluted earnings per share also reached $1.67, compared with $1.26 in the third quarter of fiscal 2025.
The Flight Support Group generated revenue of $947.8 million in the third quarter of fiscal 2026, with organic growth of 12% and an operating margin of 25.9%. The Electronic Technologies Group generated revenue of $483.5 million, with organic growth of 18% and an operating margin of 26.0%. The former serves aviation aftermarket parts, distribution, repair, and specialty products, while the latter sells electronic products for defense, aviation, and industrial technology applications.
No. Consolidated organic growth was 14% in the third quarter of fiscal 2026, reaching 12% in the Flight Support Group and 18% in the Electronic Technologies Group. However, acquisitions remain a core part of growth, including Cook Defence and the 90% stake in CalRamic Technologies completed in June 2026. Management expects both acquisitions to be accretive to earnings within one year of completion and also increased its potential credit capacity to $3 billion to support additional opportunities.
Automated analysis for informational purposes only — not investment advice.
Management said on the August 26, 2026 call that organic defense growth within the Flight Support Group was in the high-twenties percentage range and that defense and aviation also led growth in the Electronic Technologies Group. Some customers requested production to be increased two to four times, and in other cases preparations to increase it tenfold, particularly in missile and missile defense programs. The company also recorded demand for components used in building artificial intelligence-related data centers, alongside commercial and defense space applications.
Supply bottlenecks represent a tangible risk, as management said that a delay in a single part could prevent shipment of a complete component and that the issue affected component repair revenue through August 26, 2026. Organic growth in this business was only 5%, compared with 15% for parts and distribution and 14% for specialty products. There are also pressures from input inflation and extended lead times, as well as the possibility of lower demand for aviation parts if the number of flights declines.
The company generated $345.3 million of operating cash flow in the third quarter of fiscal 2026, up 49% and equal to approximately 147% of net income. It also issued $1.2 billion of unsecured notes and used the proceeds to repay outstanding borrowings under the revolving credit facility, extending the facility's maturity to June 2031. However, management expected continued cash use for working capital during the fourth quarter of fiscal 2026.