HEICO Corporation (HEI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-64.4%

$119.32

vs $335.26 price

Levered DCF

$148.61

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	63.94×	66.02×	53.88×	62.8×	61.24×	45.09×	50.34×	42.77×
P/B	10.26×	9.33×	6.91×	8.49×	8.24×	7.15×	9.89×	7.95×
P/S	9.85×	8.79×	7.32×	10.02×	10×	7.92×	8.02×	6.25×
EV / EBITDA	37.85×	35.93×	31.73×	37.53×	38.55×	31.08×	31.28×	25.55×
Gross margin	39.8%	41.8%	42.1%	42.5%	42.7%	41.8%	42.8%	42.1%
Operating margin	22.7%	21.6%	21.8%	22.1%	21.2%	21.1%	22.4%	21.1%
Net margin	15.4%	13.3%	13.6%	15.9%	16.3%	17.6%	16.0%	14.6%
Current ratio	2.83×	3.11×	2.79×	2.74×	3.18×	4.83×	2.81×	2.6×
Debt / equity	0.51×	0.62×	0.79×	0.12×	0.11×	0.38×	0.34×	0.38×
Interest coverage	7.85×	5.59×	8.87×	76.41×	54.2×	28.67×	21.2×	18.84×
Dividend yield	0.1%	0.1%	0.1%	0.1%	0.1%	0.2%	0.1%	0.1%
Payout ratio	4.6%	5.7%	6.8%	7.0%	7.6%	6.9%	5.7%	5.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.0%	14.1%	12.8%	13.5%	13.4%	15.9%	19.7%	18.5%
Return on invested capital	11.0%	9.9%	7.9%	10.5%	10.5%	10.5%	14.1%	12.7%
Return on assets	8.1%	6.8%	5.6%	8.6%	8.7%	8.9%	11.0%	9.8%
Free cash flow yield	1.9%	1.8%	1.8%	2.0%	2.2%	2.7%	2.5%	2.6%
Earnings yield	1.6%	1.5%	1.9%	1.6%	1.6%	2.2%	2.0%	2.3%
Enterprise value	$46.2B	$36B	$24.1B	$22.3B	$18.8B	$14.5B	$17B	$11.6B
Net debt / EBITDA	1.62×	2.09×	3.07×	0.28×	0.29×	0.74×	0.93×	1.04×
Cash conversion cycle (days)	206	220	248	198	198	191	154	156