Latest Ratios: P/E Ratio 74.6x · EV/EBITDA 43.5x · 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 | $50.9B | $44.7B | $34.3B | $22.0B | $22.5B | $19.2B | $14.4B | $16.9B | $11.5B | $7.9B | $4.6B |
| Enterprise Value | $52.9B | $46.7B | $36.4B | $24.3B | $22.6B | $19.4B | $14.8B | $17.4B | $11.9B | $8.5B | $5.0B |
| P/E Ratio → | 74.55 | 64.85 | 66.74 | 54.44 | 63.78 | 63.07 | 45.87 | 51.61 | 44.12 | 42.36 | 29.56 |
| P/S Ratio | 11.35 | 9.97 | 8.90 | 7.41 | 10.17 | 10.30 | 8.07 | 8.24 | 6.45 | 5.16 | 3.35 |
| P/B Ratio | 11.74 | 10.21 | 9.29 | 6.89 | 7.54 | 7.54 | 6.46 | 9.00 | 7.01 | 5.70 | 4.01 |
| P/FCF | 59.09 | 51.93 | 55.92 | 55.11 | 51.51 | 47.11 | 37.35 | 41.48 | 39.98 | 31.62 | 21.09 |
| P/OCF | 54.48 | 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 | 43.51 | 38.44 | 36.14 | 31.35 | 38.78 | 39.77 | 31.77 | 32.16 | 26.45 | 22.84 | 15.30 |
| EV / EBIT | 51.89 | 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 | 1.3% | 1.5% | 1.5% | 1.8% | 1.6% | 1.6% | 2.2% | 1.9% | 2.3% | 2.4% | 3.4% |
| FCF Yield | 1.7% | 1.9% | 1.8% | 1.8% | 1.9% | 2.1% | 2.7% | 2.4% | 2.5% | 3.2% | 4.7% |
| Buyback Yield | 0.0% | 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 |
Regulatory certification process dependency
Based on current market data, HEICO trades at a P/E of 70.45, which significantly exceeds the peer group average and suggests that investors are pricing in aggressive long-term earnings expansion rather than immediate value, as evidenced by the elevated PEG ratio of 4.29 reported in recent filings.
The valuation premium appears to be a function of the company's consistent ability to capture market share from OEMs through its PMA certification strategy. While the forward P/E of 56.94 implies a moderation in growth expectations, the multiple remains high, suggesting that any deviation from historical organic growth rates could lead to significant multiple compression.
According to the provided financial data, HEICO's ROIC has trended between 2.4% and 3.5% over the last ten quarters, a range that appears modest relative to the company's high-growth narrative and warrants further investigation into the impact of acquisition-related goodwill on the denominator of these returns.
The relatively low ROIC figures suggest that while the company is successfully scaling revenue, the capital intensity of its acquisition-led growth strategy may be suppressing overall returns on invested capital. Investors should monitor whether the integration of recent acquisitions can drive higher margin expansion to improve these return metrics over the coming fiscal periods.
As reported in financial statements, HEICO's cash conversion cycle has remained elevated, fluctuating between 171 and 211 days over the past ten quarters, primarily driven by high days inventory outstanding, which suggests a structural need to hold significant parts inventory to support its aftermarket service model.
The extended CCC indicates that the company's business model is inherently inventory-heavy, which may limit the speed at which it can convert operating profits into free cash flow. While this inventory depth is necessary to ensure parts availability for airline customers, it represents a persistent drag on working capital efficiency compared to less asset-intensive industrial peers.
Based on the company's reported figures, the debt-to-equity ratio has improved from 0.68 in 2024Q1 to 0.48 in 2026Q2, indicating a disciplined approach to capital structure that provides the firm with significant dry powder for future opportunistic acquisitions in the aerospace and defense sectors.
The reduction in leverage, coupled with an interest coverage ratio of 10.26 in 2026Q2, suggests that the company is well-positioned to service its debt obligations even in a higher interest rate environment. This financial health appears to be a key differentiator, allowing HEICO to pursue growth without the solvency risks that often plague more levered aerospace roll-up competitors.
Analysis of market sentiment suggests that the P/E ratio is the most commonly misapplied metric for HEICO, as it fails to account for the significant non-cash amortization of intangible assets resulting from the company's frequent acquisition activity, which artificially depresses reported net income and inflates the multiple.
Investors should prioritize EV/EBITDA or P/FCF to better gauge the underlying cash-generating power of the business, as these metrics are less sensitive to the accounting distortions inherent in the company's M&A-heavy growth strategy. Relying solely on P/E may lead to an inaccurate assessment of the company's true valuation relative to its actual cash-flow-generating capacity.
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 74.6x. The historical average is 33.6x. This places it at the 100th percentile of its historical range.
HEICO Corporation's current EV/EBITDA is 43.5x. 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 74.6x. This is at the 100th 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 0.06% 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.