Stock fact sheet · data as of
HEICO Corporation (HEI-A): fair value, margin of safety and Wheel Score
Industrials · Aerospace & Defense · United States · High Growth
Is HEI-A undervalued?
HEI-A closed at 231.34 on 16 Oct 2026, more than 30% above the GLS average fair value of 133.81. Only 2 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
The 9 models disagree widely: DDM gives 3.68 while Payback Time gives 292.03. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files HEI-A under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for HEI-A
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 115.20 | -50% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 69.54 | -70% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 160.64 | -31% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 62.82 | -73% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 278.45 | +20% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 171.37 | -26% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 292.03 | +26% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 3.68 | -98% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 50.54 | -78% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -9.49 | -104% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 403.33 | +74% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - HEI-A passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.7 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are moderate - ROIC 10.6%, ROE 16.0%, ROA 8.1% - with debt at 0.51 times equity and a free-cash-flow yield of 2.4%.
The dividend yield is 0.08% with a payout ratio of 4% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Flight Support Group 66%, Electronic Technologies Group 34% (quarter Q3 FY2026).
Institutional ownership scores 6/10, insider activity 9/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 10.6% |
|---|---|---|---|
| GLS Moat | 8.7 / 10 | ROE | 16.0% |
| Debt / equity | 0.51 | ROA | 8.1% |
| Free-cash-flow yield | 2.4% | Payout ratio | 4% |
| Institutions | 6 / 10 | Insiders · Congress | 9 · 5 / 10 |
Wheel Score 39: No options
HEI-A has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 229k shares a day on a market cap of $43.0B, with a beta of 1.13; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -73% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 13 / 15 | moat 8.7/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 14 / 20 | 229k shares/day, $43.0B cap, beta 1.13 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 21 Dec 2026, 66 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aerospace & Defense
The 12 companies below are the closest to HEICO Corporation by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| HEI HEICO Corporation | 308.64 | 155.07 | -99% | 58Fair | $43.0B |
| LHX L3Harris Technologies, Inc. | 240.50 | 226.04 | -6% | 76Good | $44.8B |
| HONA Honeywell Aerospace Inc | 163.11 | 69.57 | -134% | 45Weak | $51.7B |
| RKLB Rocket Lab USA, Inc. | 59.18 | - | - | 45Weak | $35.4B |
| ESLT Elbit Systems Ltd. | 741.61 | 363.05 | -104% | 62Fair | $34.8B |
| AXON Axon Enterprise, Inc. | 417.19 | 66.90 | -524% | 49Weak | $33.9B |
| TDG TransDigm Group Incorporated | 1,109.77 | 1,238.79 | +10% | 75Good | $61.3B |
| NOC Northrop Grumman Corporation | 499.63 | 449.01 | -11% | 72Good | $71.0B |
| HWM Howmet Aerospace Inc. | 219.75 | 111.60 | -97% | 68Good | $87.6B |
| GD General Dynamics Corporation | 337.03 | 286.36 | -18% | 66Good | $91.2B |
| WWD Woodward, Inc. | 328.53 | 194.75 | -69% | 60Fair | $19.4B |
| CW Curtiss-Wright Corporation | 501.49 | 304.81 | -65% | 67Good | $18.5B |
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Start free See the Sunday ScanQuestions about HEI-A
Is HEI-A undervalued right now?
No: at 231.34 the stock trades 73% above the GLS average fair value of 133.81 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of HEI-A and what does it mean?
HEI-A has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for HEI-A?
133.81 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does HEICO Corporation report earnings next?
The next earnings report is due on 21 Dec 2026, 66 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does HEI-A have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on HEI-A, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.