Is the business good?
How good a business is HEI?
HEICO Corporation earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
13%
Return on invested capital · cost of capital 9.0% · 3.8 points above what the capital costs: growth creates value
- Operating margin
- 24%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Cash conversion
- 1.17×
Cash conversion · 1.27× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.33%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 21% |
| FY2022 | 23% |
| FY2023 | 21% |
| FY2024 | 21% |
| FY2025 | 23% |
Details›
- Gross margin12 months to Q2 2026
- 40%
- Operating margin12 months to Q2 2026
- 24%
- Net margin12 months to Q2 2026
- 16%
- Free cash flow margin
- 19%
- R&D as % of revenue
- 2.7%
- Revenue, trailing twelve months
- $4.91B
- Free cash flow, trailing twelve months
- $926M
- Net income, trailing twelve months
- $790M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Aerospace & Defense
Ranks #5 of 48 by Smart Score