Industrials · NYSE/NASDAQ: HEI
HEICO CORP
Aerospace & Defense
Market Cap $46.95B
Verdict: Exceptional
Quality Scores
Multi-Bagger
94/100
Compounder Quality
96/100
Management Credibility
95/100
Governance
92/100
Cash Flow Quality
96/100
AI Summary
HEI is a premier aerospace and electronics compounder known for its unique 'parts-distributor-manufacturer' model that thrives on airline cost-cutting. Over the last decade, the company has demonstrated an exceptional ability to acquire niche aerospace businesses and integrate them while maintaining robust margins. The 2021-2025 period shows a significant scaling phase, with revenue jumping from $1.87B to $4.49B, driven largely by the strategic acquisition of Wencor. Despite the cyclical nature of aviation, HEI's focus on PMA (Parts Manufacturer Approval) components provides a recurring,…
Top Opportunities
- Exceptional long-term track record of compounding
- Niche dominance in FAA-approved PMA parts
- Strong historical net income CAGR
Top Risks
- Significant exposure to commercial aviation cycles
- Dependence on large airline fleets for aftermarket demand
- Potential for increased competition from OEMs
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