| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 20 | 39.0x | 17.3x | Bottom tier | |
Growth | 84 | 20.7% | 7.1% | Top tier | |
Quality | 80 | 14.5% | 4.5% | Top tier | |
Safety | 77 | 1.6x | 2.6x | Top tier | |
Capital Return | 57 | 0.11% | 0.06% | Around median | |
Momentum | 59 | -5.8% | -1.6% | Around median | |
Sentiment | 89 | 7 | 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 main groups serving the aviation, defense, space, industrial technology, and electronics markets. Flight Support Group sells approved replacement parts, distribution parts, and specialty products, and provides component repair services using HEICO’s PMA parts and DER solutions, while Electronic Technologies Group manufactures electronic, electro-optical, and structural components and products for aviation, defense, space, data center, and industrial gas turbine applications. The profit model relies on increasing value-added products, improving the sales mix, leveraging revenue growth without a comparable increase in overhead expenses, and acquiring companies with target EBITDA margins typically of 20% or more.
In Q3 of fiscal 2026, consolidated revenue rose 23% to a record $1.4131 billion, and operating income increased 34% to $355.2 million, representing an operating margin of approximately 25.1%. Net income rose 33% to $235.4 million, or $1.67 per diluted share, while gross profit according to EDGAR data was approximately $581.0 million, representing a gross margin of approximately 41.1%. EBITDA also increased 31% to $415.2 million, and operating cash flow reached $345.3 million, or approximately 147% of net income.
Flight Support Group generated record revenue of $947.8 million, up 18%, including 12% organic growth, and its operating income increased 24% to $245.3 million, with the operating margin improving to 25.9% from 24.7%. Electronic Technologies Group recorded record revenue of $483.5 million, up 36%, including 18% organic growth, and its operating income jumped 55% to $125.6 million, with the margin expanding to 26.0% from 22.8%. On a trailing twelve-month basis through fiscal 2026, revenue reached $5.2 billion, net income was $847.7 million, and earnings per share were approximately $6.00.
The average analyst price target is $403.33, within a narrow range of $390 to $410, with a consensus “Buy” rating. The average target is approximately 44.2% above the 52-week range high of $279.66, while even the lowest target exceeds that high by approximately 39.5%, reflecting high expectations for continued organic earnings growth, acquisitions, and margin expansion. Conversely, this substantial gap between the 52-week range and analyst targets increases the valuation’s sensitivity to any slowdown in demand or a return of Electronic Technologies Group’s margin toward the annual guidance range of 22% to 24%, and the available data does not include a valid earnings multiple to provide an additional valuation anchor.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Consolidated revenue reached $1.4131 billion, up 23% from Q3 of fiscal 2025. Operating income increased 34% to $355.2 million, and net income rose 33% to $235.4 million, or $1.67 per diluted share. EBITDA reached approximately $415.2 million, up 31%, while operating cash flow jumped 49% to $345.3 million.
Flight Support Group recorded revenue of $947.8 million, compared with $483.5 million for Electronic Technologies Group. The first group grew 18%, supported by 12% organic growth and higher demand across all product lines, while the second grew 36%, with 18% organic growth. Operating income for the two groups was $245.3 million and $125.6 million, respectively.
HEICO uses its PMA parts and DER solutions to provide lower-cost alternatives in repair markets where customers request these options. In Q3 of fiscal 2026, the component repair business grew organically by only 5%, but management explained that the use of PMA parts reduces the revenue amount compared with passing through the cost of original equipment manufacturer parts and increases profitability. Management said the adoption of PMA and DER is progressing very strongly in markets that accept alternatives, while they are not offered in product lines where agreements prohibit them.
Automated analysis for informational purposes only — not investment advice.
Management said organic defense revenue growth within Flight Support Group reached the high-twenties range in Q3 of fiscal 2026, while defense and aviation also drove growth in Electronic Technologies Group. In missile and missile defense programs, some customers asked HEICO to prepare for a tenfold increase in production, while other requests included doubling production or increasing it threefold or fourfold. In industrial technologies, components from several subsidiaries are benefiting from data center construction and demand related to artificial intelligence, and management believes this trend extends beyond one year.
An 80%-owned Flight Support Group subsidiary acquired all of Cook Defence in June 2026, adding track systems, mobility solutions, and steel components for combat vehicles. In the same month, Electronic Technologies Group subsidiary Exxelia acquired 90% of CalRamic Technologies, which manufactures high-voltage ceramic capacitors for aviation, defense, and certain industrial market applications. HEICO expects both acquisitions to be accretive to earnings during the year following their completion, and financed Cook Defence primarily through the revolving credit facility and CalRamic through operating cash flows.
Management expects continued use of cash for working capital to finance inventory and fulfill the backlog during Q4 of fiscal 2026. This will pressure operating cash flow in that quarter. This follows strong operating cash flow of $345.3 million in Q3 of fiscal 2026, so the outflow represents a time-specific impact that should be separated from underlying operating performance.