Latest Ratios: P/E Ratio 63.4x · EV/EBITDA 37.2x · ROE 17.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $43.3B | $44.7B | $34.3B | $22.0B | $22.5B | $19.2B | $14.4B | $16.9B | $11.5B | $7.9B | $4.6B |
| Enterprise Value | $45.2B | $46.7B | $36.4B | $24.3B | $22.6B | $19.4B | $14.8B | $17.4B | $11.9B | $8.5B | $5.0B |
| P/E Ratio → | 63.38 | 64.85 | 66.74 | 54.44 | 63.78 | 63.07 | 45.87 | 51.61 | 44.12 | 42.36 | 29.56 |
| P/S Ratio | 9.65 | 9.97 | 8.90 | 7.41 | 10.17 | 10.30 | 8.07 | 8.24 | 6.45 | 5.16 | 3.35 |
| P/B Ratio | 9.98 | 10.21 | 9.29 | 6.89 | 7.54 | 7.54 | 6.46 | 9.00 | 7.01 | 5.70 | 4.01 |
| P/FCF | 50.23 | 51.93 | 55.92 | 55.11 | 51.51 | 47.11 | 37.35 | 41.48 | 39.98 | 31.62 | 21.09 |
| P/OCF | 46.31 | 47.88 | 51.08 | 49.04 | 47.99 | 43.27 | 35.25 | 38.73 | 34.88 | 28.63 | 18.48 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.41 | 9.44 | 8.20 | 10.24 | 10.38 | 8.27 | 8.49 | 6.71 | 5.57 | 3.65 |
| EV / EBITDA | 37.24 | 38.44 | 36.14 | 31.35 | 38.78 | 39.77 | 31.77 | 32.16 | 26.45 | 22.84 | 15.30 |
| EV / EBIT | 44.40 | 45.64 | 44.06 | 38.73 | 45.47 | 49.09 | 39.07 | 37.96 | 31.72 | 27.59 | 18.92 |
| EV / FCF | — | 54.23 | 59.33 | 60.94 | 51.89 | 47.46 | 38.25 | 42.71 | 41.63 | 34.12 | 23.00 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 39.8% | 39.8% | 41.8% | 42.1% | 42.5% | 42.7% | 41.8% | 42.8% | 42.1% | 40.7% | 40.7% |
| Operating Margin | 22.7% | 22.7% | 21.6% | 21.8% | 22.1% | 21.2% | 21.1% | 22.4% | 21.1% | 20.2% | 19.5% |
| Net Profit Margin | 15.4% | 15.4% | 13.3% | 13.6% | 15.9% | 16.3% | 17.6% | 16.0% | 14.6% | 12.2% | 11.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.1% | 17.1% | 14.9% | 13.1% | 12.7% | 12.7% | 15.3% | 18.6% | 17.2% | 14.7% | 14.7% |
| ROA | 8.6% | 8.6% | 7.0% | 7.1% | 9.3% | 8.6% | 9.6% | 11.7% | 10.0% | 8.2% | 8.3% |
| ROIC | 12.6% | 12.6% | 11.1% | 11.2% | 12.5% | 11.2% | 11.4% | 15.3% | 13.7% | 13.0% | 14.0% |
| ROCE | 14.0% | 14.0% | 12.4% | 12.7% | 14.2% | 12.1% | 12.6% | 18.2% | 16.2% | 15.1% | 15.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.50 | 0.50 | 0.61 | 0.78 | 0.10 | 0.10 | 0.34 | 0.30 | 0.33 | 0.49 | 0.40 |
| Debt / EBITDA | 1.81 | 1.81 | 2.23 | 3.22 | 0.52 | 0.51 | 1.62 | 1.04 | 1.18 | 1.81 | 1.40 |
| Net Debt / Equity | — | 0.45 | 0.57 | 0.73 | 0.06 | 0.06 | 0.16 | 0.27 | 0.29 | 0.45 | 0.36 |
| Net Debt / EBITDA | 1.63 | 1.63 | 2.07 | 3.00 | 0.28 | 0.29 | 0.75 | 0.93 | 1.05 | 1.67 | 1.27 |
| Debt / FCF | — | 2.29 | 3.40 | 5.83 | 0.38 | 0.35 | 0.90 | 1.24 | 1.65 | 2.50 | 1.90 |
| Interest Coverage | 7.88 | 7.88 | 5.54 | 8.61 | 77.89 | 54.13 | 28.73 | 21.18 | 18.90 | 31.44 | 32.07 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.83 | 2.83 | 3.11 | 2.79 | 2.74 | 3.18 | 4.83 | 2.81 | 2.60 | 2.53 | 2.72 |
| Quick Ratio | 1.28 | 1.28 | 1.34 | 1.27 | 1.35 | 1.56 | 2.91 | 1.36 | 1.18 | 1.16 | 1.39 |
| Cash Ratio | 0.26 | 0.26 | 0.24 | 0.26 | 0.33 | 0.37 | 1.69 | 0.20 | 0.21 | 0.21 | 0.20 |
| Asset Turnover | — | 0.53 | 0.51 | 0.41 | 0.54 | 0.53 | 0.50 | 0.69 | 0.67 | 0.61 | 0.67 |
| Inventory Turnover | 2.08 | 2.08 | 1.92 | 1.70 | 2.18 | 2.24 | 2.24 | 2.80 | 2.56 | 2.63 | 2.85 |
| Days Sales Outstanding | — | 61.60 | 61.57 | 76.34 | 64.27 | 63.58 | 55.32 | 56.37 | 51.63 | 53.25 | 53.63 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% | 0.2% |
| Payout Ratio | 4.6% | 4.6% | 5.7% | 6.8% | 7.0% | 7.6% | 6.9% | 5.7% | 5.9% | 6.9% | 6.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.6% | 1.5% | 1.5% | 1.8% | 1.6% | 1.6% | 2.2% | 1.9% | 2.3% | 2.4% | 3.4% |
| FCF Yield | 2.0% | 1.9% | 1.8% | 1.8% | 1.9% | 2.1% | 2.7% | 2.4% | 2.5% | 3.2% | 4.7% |
| Buyback Yield | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.1% | 0.1% | 0.2% | 0.2% | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% | 0.2% |
| Shares Outstanding | — | $141M | $140M | $139M | $138M | $138M | $137M | $137M | $137M | $136M | $133M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HEI stock.
HEICO Corporation's current P/E ratio is 63.4x. The historical average is 33.6x. This places it at the 90th percentile of its historical range.
HEICO Corporation's current EV/EBITDA is 37.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.5x.
HEICO Corporation's return on equity (ROE) is 17.1%. The historical average is 12.6%.
Based on historical data, HEICO Corporation is trading at a P/E of 63.4x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
HEICO Corporation's current dividend yield is 0.07% with a payout ratio of 4.6%.
HEICO Corporation has 39.8% gross margin and 22.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
HEICO Corporation's Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Valuation premium vulnerability
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Growth Expectations
HEICO trades at a significant premium to peers, with a P/E of 66.47 and EV/EBITDA of 38.97, suggesting the market is pricing in sustained high growth and margin expansion beyond the current aerospace recovery cycle.
The valuation multiples are well above the peer group average, with TransDigm's P/E at 36.09 and Curtiss-Wright at 44.19, indicating HEICO commands a unique growth premium. This premium appears justified by the company's consistent double-digit organic growth and superior margin profile, but it also creates vulnerability if growth decelerates. The PEG ratio of 4.05 suggests the market is pricing in a growth rate significantly higher than the current earnings trajectory, warranting close monitoring of organic growth sustainability.
Margin Expansion Drives Earnings Power
Operating margins have expanded from 21.2% in Q2 2024 to 25.1% in Q3 2026, demonstrating strong operating leverage and pricing power that is converting revenue growth into accelerating profitability.
The gross margin stability near 40% indicates HEICO's PMA-based model provides a durable cost advantage over OEMs, while the expanding operating margin suggests effective overhead absorption as the business scales. The net margin of 16.7% in the latest quarter represents a significant improvement from the 12.9% seen in Q2 2024, confirming that the company's growth is translating into bottom-line earnings power. This margin trajectory appears sustainable given the structural nature of HEICO's competitive advantages in the aerospace aftermarket.
Improving Returns on Invested Capital
ROIC has improved from 2.5% in Q2 2024 to 3.4% in Q3 2026, indicating that the company is beginning to generate better returns on its expanding asset base, though absolute levels remain modest.
The ROIC improvement is driven by both margin expansion and modest asset turnover gains, suggesting the company is becoming more efficient at deploying capital. However, the absolute ROIC level of 3.4% appears low relative to the company's strong profitability metrics, likely reflecting the significant goodwill and intangible assets on the balance sheet from acquisitions. This disconnect between accounting returns and economic value creation warrants investigation into whether the company's acquisition strategy is truly creating shareholder value above its cost of capital.
Working Capital Dynamics Reflect Aerospace Cycles
The cash conversion cycle has improved from 211 days in Q1 2025 to 182 days in Q3 2026, driven primarily by reduced days inventory outstanding, suggesting better inventory management amid strong demand.
The improvement in CCC is positive, but the absolute level remains elevated at 182 days, reflecting the long production cycles and specialized inventory requirements of aerospace manufacturing. Days sales outstanding of 57 days indicates HEICO maintains reasonable collection efficiency with its airline customers, while days payable outstanding of 33 days suggests limited supplier leverage. The working capital efficiency appears adequate for the business model but could become a constraint if growth accelerates further without corresponding improvements in inventory turnover.
ROIC Misleads on Acquisition-Heavy Model
The most commonly misapplied ratio is ROIC, which appears artificially low at 3.4% due to goodwill-heavy accounting, obscuring the true economic returns generated by HEICO's asset-light PMA business model.
Analysts often compare HEICO's ROIC to industrial peers without adjusting for the significant goodwill from acquisitions, making the company appear less efficient than it truly is. The better metric would be adjusted ROIC excluding goodwill, or simply focusing on the strong operating margins and cash conversion that demonstrate the underlying business economics. This accounting distortion is particularly relevant for HEICO given that goodwill represents approximately 44% of total assets, making traditional ROIC calculations misleading for evaluating the company's true capital efficiency.