For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Heico Corporation (HEI) ten years ago? It may not have been easy to hold on to HEI for all that time, but if you did, how much would your investment be worth today?
Heico Corporation's Business In-Depth
With that in mind, let's take a look at Heico Corporation's main business drivers.
Florida-based HEICO Corporation, incorporated in 1957, is one of the world’s leading manufacturers of Federal Aviation Administration (“FAA”)-approved jet engine and aircraft component replacement parts. It also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. The company’s products are found on large commercial aircraft, regional, business and military aircraft, as well as on a large variety of industrial turbines, targeting systems, missiles and electro-optical devices.
HEICO Corp. operates in two segments, the Flight Support group and the Electronic Technologies group.
The Flight Support Group consists of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp., and their collective subsidiaries. The group uses proprietary technology to design and manufacture jet engine and aircraft component replacement parts. In addition, it repairs, overhauls and distributes jet engine and aircraft components, avionics and instruments. The segment also manufactures thermal insulation products, complex composite assemblies and other component parts, primarily for aerospace, defense, industrial and commercial applications. Net sales for this group were $2.64 billion in fiscal 2024, contributing 68.4% to the company’s total sales.
The Electronic Technologies Group consists of HEICO Electronic Technologies Corp. and its subsidiaries. It designs, manufactures and sells various types of electronic, microwave and electro-optical products. These products include infrared simulation and test equipment, laser rangefinder receivers, electrical power supplies, back-up power supplies, power conversion products, underwater locator beacons, electromagnetic interference and radio frequency interference shielding, high power capacitor charging power supplies, amplifiers, photo detectors, and radio frequency (RF) and microwave amplifiers. Net sales for this group were $1.26 billion in fiscal 2024, contributing 32.8% to the company’s total sales.
Total sales consisted of intersegment expenses of $0.45 billion.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Heico Corporation ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2015 would be worth $9,080.71, or a gain of 808.07%, as of May 5, 2025, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 169.73% and the price of gold went up 160.43% over the same time frame.
Going forward, analysts are expecting more upside for HEI.
Heico has been witnessing increased orders for its aftermarket replacement parts and repair and overhaul parts services, buoyed by rising air travel. Looking ahead, impressive air travel projections should bode well for Heico’s growth. Its Flight Support Group unit is a leading supplier, distributor and integrator of military aircraft parts and support services. Solid defense funding offered by the U.S. government should bolster order flows for the company’s defense products. Its shares have outperformed the industry in the past year. However, a supply shortage of aircraft components might adversely impact the company’s future performance. Heico is exposed to stringent governmental regulations, and failure to comply with them might lead to a material adverse impact on its business. The stock is expensive compared to its industry.
The stock is up 8.54% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2025. The consensus estimate has moved up as well.
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Heico Corporation (HEI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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