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Upturn AI SWOT - About
HEI 
Heico Corporation (HEI)
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Upturn Advisory Summary
03/27/2025: HEI (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 2.01% | Avg. Invested days 37 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 32.77B USD | Price to earnings Ratio 66.55 | 1Y Target Price 276.31 |
Price to earnings Ratio 66.55 | 1Y Target Price 276.31 | ||
Volume (30-day avg) 589990 | Beta 1.26 | 52 Weeks Range 184.85 - 283.47 | Updated Date 04/2/2025 |
52 Weeks Range 184.85 - 283.47 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 0.08% | Basic EPS (TTM) 4.06 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 14.21% | Operating Margin (TTM) 22.33% |
Management Effectiveness
Return on Assets (TTM) 7.15% | Return on Equity (TTM) 15.54% |
Valuation
Trailing PE 66.55 | Forward PE 63.69 | Enterprise Value 34886587729 | Price to Sales(TTM) 8.21 |
Enterprise Value 34886587729 | Price to Sales(TTM) 8.21 | ||
Enterprise Value to Revenue 8.74 | Enterprise Value to EBITDA 33.17 | Shares Outstanding 55025000 | Shares Floating 118145454 |
Shares Outstanding 55025000 | Shares Floating 118145454 | ||
Percent Insiders 23.03 | Percent Institutions 73.24 |
Analyst Ratings
Rating 4.05 | Target Price 268.33 | Buy 3 | Strong Buy 9 |
Buy 3 | Strong Buy 9 | ||
Hold 6 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Heico Corporation
Company Overview
History and Background
Heico Corporation was founded in 1957 as Heinicke Instruments Corporation. It evolved through several name changes and strategic shifts, focusing on aerospace and electronics. A major turning point was the acquisition of Jet Avion Corporation in 1995, solidifying its position in the aerospace parts market. Since then, HEICO has grown via organic expansion and acquisitions.
Core Business Areas
- Flight Support Group (FSG): Designs, manufactures, repairs and distributes FAA-approved replacement parts and components, primarily for commercial aircraft. This segment also provides component repair and overhaul services.
- Electronic Technologies Group (ETG): Designs, manufactures, and sells electronic equipment, including microwave and millimeter wave products, power supplies, and electro-optical devices. These products are used in defense, space, and commercial applications.
Leadership and Structure
Laurans A. Mendelson is the Chairman and CEO. Victor H. Mendelson is the Co-President. The company operates with a decentralized structure, empowering individual business units while maintaining central oversight.
Top Products and Market Share
Key Offerings
- FAA-Approved Replacement Parts (FSG): Offers a wide array of parts for commercial aircraft, providing cost-effective alternatives to original equipment manufacturer (OEM) parts. HEICO estimates it has a significant portion of the PMA parts market. Competitors: TransDigm, AMETEK, and other OEM suppliers.
- Microwave and Millimeter Wave Products (ETG): Develops and manufactures high-performance electronic components and systems. Serves the defense, space, and commercial markets. Competitors: CPI, L3Harris, and Teledyne.
Market Dynamics
Industry Overview
The aerospace parts market is driven by factors such as increasing air travel, aging aircraft fleets, and the demand for cost-effective maintenance solutions. The electronics segment is influenced by technological advancements and defense spending.
Positioning
HEICO is a leading independent provider of FAA-approved replacement parts and a niche provider of electronic equipment. Its competitive advantages include its rapid development capabilities, cost-effective solutions, and strong customer relationships.
Total Addressable Market (TAM)
The global aerospace parts market is estimated to be in the billions of dollars. HEICO is well-positioned to capture a larger share of this market through organic growth and acquisitions.
Upturn SWOT Analysis
Strengths
- Strong financial performance
- Diversified revenue streams
- Proven acquisition strategy
- Agile development capabilities
- Cost-effective solutions
Weaknesses
- Reliance on the aerospace industry
- Potential impact of economic downturns
- Integration risks associated with acquisitions
- Dependency on regulatory approvals (FAA)
- Smaller scale compared to major OEMs
Opportunities
- Expanding into new geographic markets
- Developing new product lines
- Acquiring complementary businesses
- Capitalizing on the growing demand for aftermarket parts
- Increased defense spending
Threats
- Economic downturns and reduced air travel
- Increased competition from OEMs and other aftermarket suppliers
- Changes in regulations and certification requirements
- Disruptions in the supply chain
- Geopolitical instability
Competitors and Market Share
Key Competitors
- TDG
- TXT
- HON
Competitive Landscape
HEICO competes on price, quality, and rapid development capabilities. It has a strong position in the PMA parts market and is expanding its presence in the electronics segment. HEICO is smaller than TDG, TXT and HON.
Major Acquisitions
Wencor LLC
- Year: 2023
- Acquisition Price (USD millions): 1900
- Strategic Rationale: Expands HEICO's offerings and scale in the aftermarket parts space, complementing its existing Flight Support Group.
Growth Trajectory and Initiatives
Historical Growth: HEICO has demonstrated strong historical growth through organic expansion and acquisitions.
Future Projections: Analyst estimates suggest continued growth driven by increasing air travel and demand for cost-effective solutions.
Recent Initiatives: Recent initiatives include strategic acquisitions, expanding into new product lines, and investing in research and development.
Summary
Heico Corporation demonstrates strong financials and growth driven by its acquisitions and aftermarket parts market presence. Its agile development and cost-effective offerings keep it competitive. It needs to watch out for economic downturns impacting air travel and integration risks from future acquisitions, however the company is in a strong position for the coming years. The company needs to consider that the PMA parts are heavily scrutinized.
Similar Companies
- TDG
- TXT
- HON
- COL
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Heico Corporation
Exchange NYSE | Headquaters Hollywood, FL, United States | ||
IPO Launch date 1992-03-17 | Chairman of the Board & CEO Mr. Laurans A. Mendelson | ||
Sector Industrials | Industry Aerospace & Defense | Full time employees 10000 | Website https://www.heico.com |
Full time employees 10000 | Website https://www.heico.com | ||
HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. It operates in two segments Flight Support Group (FSG) and Electronic Technologies Group (ETG). The FSG segment provides 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 flight surfaces of commercial aircraft, as well as for avionics and navigation systems, subcomponents, and other instruments utilized on military aircraft. The ETG 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; harsh environment connectivity products and custom 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; silicone products; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; embedded computing solutions; test sockets and adapters; radiation assurance services; and electronic components and rotary joint
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