HEICO Corporation (NYSE:HEI) Poised To Extend Momentum Toward WMDST $353 Mean Target

HEICO shows renewed commercial momentum supported by corporate actions and improvements in short-term momentum indicators; valuation gap to the WMDST mean target leaves modest upside while technical extension raises near-term pullback risk.

Recent News

On December 18, 2025 HEICO declared a $0.12 per share cash dividend payable January 20, 2026 and set its annual meeting date; the board noted continued confidence after a record fiscal year. On December 22, 2025 HEICO earned an upgrade in a major composite stock rating, reflecting stronger relative technical and earnings metrics in recent weeks.

Technical Analysis

ADX / DI+ / DI-: ADX at 10.35 signals no established trend, which reduces conviction for a sustained directional breakout; however DI+ at 23.22 showed a dip & reversal (bullish) while DI- at 20.5 is decreasing (bullish), producing a short-term upward bias that requires trend-strengthening to target the WMDST valuation.

MACD: MACD sits at -0.10 with a signal line at -0.91 and shows a dip & reversal; MACD has crossed above its signal line, indicating a bullish momentum shift that supports further upside attempts over the next several weeks.

MRO (Momentum/Regression Oscillator): MRO at 20.82 registers positive, implying the market price currently sits above the model target and creates measurable upside exhaustion risk that could trigger profit-taking or consolidation before any renewed advance.

RSI: RSI at 51.16 with a dip & reversal reflects neutral-to-bullish momentum without overbought conditions, allowing room for additional upside without immediate technical overextension.

Price Structure & Trend Indicators: Last close $326.67 sits above the 20-day ($311.79), 50-day ($313.26) and 200-day ($299.30) averages, and above the Ichimoku cloud (Senkou A $322.08 / Senkou B $320.98), showing price leadership across multiple trend references. Price exceeds the Bollinger upper 2x standard deviation ($323.54), signaling short-term extension; elevated volume (1,082,101 vs. 10-day avg 555,453) validates recent directional conviction but increases pullback probability while ADX remains low.

 


Fundamental Analysis

Earnings And Guidance Signals: Reported EPS beat: actual EPS $1.33 versus estimate $1.22, an EPS surprise of +9.02%. Reported earnings growth measures show a YoY increase of 169.45% and a QoQ change of -55.55%; forward EPS stands at $1.53. The company reported record quarterly net income and record net sales for the fiscal fourth quarter as disclosed in the December release.

Revenue And Cash Conversion: Reported revenue growth shows 0.0% overall, with a QoQ change of -100.0% and a YoY change of -100.0% (values shown as provided). Cash conversion cycle at 0 days with a QoQ change of -100.0% reflects an atypically short working-capital cycle in the reported period.

Profitability & Capital Structure: PE ratio stands at 235.39 with a QoQ change of -3.39% and a YoY change of -10.38%; forward PE at 205.50. PEG registers at 42.37 with a PEGratio QoQ change of 117.36% and forward PEG at 36.99. Invested capital equals $2,185,735,000 and cost of debt reads 1.088%.

Dividend & Cash Flow: Board declared a $0.12 per share semiannual cash dividend payable January 20, 2026, marking the company’s multi-decade semiannual payout cadence and reflecting strong operating cash generation cited in the quarter close.

Valuation Conclusion: The current valuation as determined by WMDST places a mean price target of $353.43 with a high target of $511.01 and a low of $208.09. At the last close of $326.67 the implied gap to the WMDST mean target equals approximately +8.2%, leaving modest modeled upside while elevated MRO and price above Bollinger bands suggest near-term consolidation could temper progress toward that mean.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-10-31
REPORT DATE: 2025-12-18
NEXT REPORT DATE: 2026-03-19
CASH FLOW  Begin Period Cash Flow
 Operating Cash Flow
 Capital Expenditures
 Change In Working Capital
 Dividends Paid
 Cash Flow Delta
 End Period Cash Flow
 
INCOME STATEMENT REVENUE
 Total Revenue
 Forward Revenue
COSTS
 Cost Of Revenue
 Depreciation
 Depreciation and Amortization
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income
 Interest Expense
 Net Interest Income
 Income Before Tax
 Tax Provision
 Tax Rate
 Net Income
 Net Income From Continuing Operations
EARNINGS
 EPS Estimate 1.22
 EPS Actual 1.33
 EPS Difference 0.11
 EPS Surprise 9.016 %
 Forward EPS 1.53
 
BALANCE SHEET ASSETS
 Total Assets
 Intangible Assets
 Net Tangible Assets
 Total Current Assets
 Cash and Short-Term Investments
 Cash
 Net Receivables
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable
 Short-Term Debt
 Total Current Liabilities
 Net Debt
 Total Debt
 Total Liabilities
EQUITY
 Total Equity
 Retained Earnings
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share
 Shares Outstanding
 Revenue Per-Share
VALUATION
 Market Capitalization
 Enterprise Value
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R
CAPITAL STRUCTURE
 Asset To Equity
 Asset To Liability
 Debt To Capital
 Debt To Assets
Debt To Assets QoQ
Debt To Assets YoY
Debt To Assets IPRWA
 Debt To Equity
Debt To Equity QoQ
Debt To Equity YoY
Debt To Equity IPRWA
PRICE-BASED VALUATION
 Price To Book (P/B)
Price To Book QoQ
Price To Book YoY
Price To Book IPRWA
 Price To Earnings (P/E) 235.389
Price To Earnings QoQ -3.388 %
Price To Earnings YoY -10.375 %
Price To Earnings IPRWA
 PE/G Ratio 42.367
 Price To Sales (P/S)
Price To Sales QoQ
Price To Sales YoY
Price To Sales IPRWA
FORWARD MULTIPLES
Forward P/E 205.499
Forward PE/G 36.987
Forward P/S
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio
Asset Turnover Ratio QoQ
Asset Turnover Ratio YoY
Asset Turnover Ratio IPRWA
 Receivables Turnover
Receivables Turnover Ratio QoQ
Receivables Turnover Ratio YoY
Receivables Turnover Ratio IPRWA
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO)
CASH CYCLE
 Cash Conversion Cycle Days (CCC) 0.0
Cash Conversion Cycle Days QoQ -100.0 %
Cash Conversion Cycle Days YoY -100.0 %
Cash Conversion Cycle Days IPRWA
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue
 CapEx To Depreciation
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital
 Net Invested Capital
 Invested Capital 2.2 B
 Net Tangible Assets
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 1.088 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio
 Dividend Payout Ratio
 Dividend Rate
 Dividend Yield
PERFORMANCE GROWTH
 Asset Growth Rate
 Revenue Growth 0.0 %
Revenue Growth QoQ -100.0 %
Revenue Growth YoY -100.0 %
Revenue Growth IPRWA
 Earnings Growth 5.556 %
Earnings Growth QoQ -55.552 %
Earnings Growth YoY 169.447 %
Earnings Growth IPRWA
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF)
 Free Cash Flow Yield
Free Cash Flow Yield QoQ
Free Cash Flow Yield YoY
Free Cash Flow Yield IPRWA
 Free Cash Growth
Free Cash Growth QoQ
Free Cash Growth YoY
Free Cash Growth IPRWA
 Free Cash To Net Income
 Cash Flow Margin
 Cash Flow To Earnings
VALUE & RETURNS
 Economic Value Added
 Return On Assets (ROA)
Return On Assets QoQ
Return On Assets YoY
Return On Assets IPRWA
 Return On Capital Employed (ROCE)
 Return On Equity (ROE)
Return On Equity QoQ
Return On Equity YoY
Return On Equity IPRWA
 DuPont ROE
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Technical indicators display a short-term bullish tilt (DI+ dip & reversal; MACD crossing above its signal; RSI recovering) but ADX below 20 limits trend conviction, increasing the likelihood of range-bound action or corrective pullbacks before any sustained move toward the WMDST mean target. Elevated volume accompanying the recent advance supports continued price discovery, yet MRO positive and price above the Bollinger upper band indicate measurable risk of a retracement that would likely find support around the 50-day and 200-day averages and the super-trend lower at $305 if selling intensifies. If momentum sustains on volume, the path toward the WMDST mean target near $353 remains viable; absent stronger trend strength, expect oscillation between consolidation and selective attempts to extend gains.

About HEICO Corporation

HEICO Corporation (NYSE:HEI) develops and delivers a wide range of products and services within the aerospace, defense, and electronics sectors. Headquartered in Hollywood, Florida, HEICO operates through two primary segments: the Flight Support Group and the Electronic Technologies Group. The Flight Support Group manufactures high-quality replacement parts for jet engines and aircraft components, offering thermal insulation solutions and specialty components. It also supplies hydraulic, pneumatic, and electro-mechanical parts for various aviation markets, along with comprehensive repair and overhaul services for commercial and military aircraft systems. The Electronic Technologies Group advances technology solutions by producing electro-optical and microwave equipment, RF interference shielding, and power conversion devices. This segment serves a broad array of industries with products like underwater locator beacons, RF and microwave products, and nuclear radiation detectors. Since its inception in 1957, HEICO has consistently expanded its global presence, maintaining a strong commitment to quality, reliability, and technological advancement. The company continues to focus on customer satisfaction while enhancing its innovative offerings worldwide.



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