HEICO (US:HEI) ZACKSยท2025-09-03 15:16Core Viewpoint - HEICO Corporation (HEI) benefits from its aircraft aftermarket services and strategic acquisitions, contributing to its steady growth and making it a solid investment option in the Zacks Aerospace Defense Equipment industry [1] Growth Projection & Surprise History - The Zacks Consensus Estimate for HEI's fiscal 2025 earnings per share (EPS) has increased by 1.1% to $4.62 per share over the past 30 days [2] - The Zacks Consensus Estimate for fiscal 2025 revenues is projected at $4.38 billion, indicating a rise of 13.5% [2] - The company's long-term earnings growth rate is 17.6%, and it has consistently surpassed expectations with an average earnings surprise of 13.35% over the last four quarters [2] Return on Equity - HEICO's return on equity (ROE) stands at 16.29%, significantly higher than the industry's average of 8.56%, indicating more efficient utilization of shareholders' funds [3] Debt Profile - HEICO's total debt to capital ratio is 36.75%, better than the industry's average of 49.24% [4] - The times interest earned ratio at the end of the third quarter of fiscal 2025 was 7.3, reflecting the company's strong ability to meet future interest obligations [4] Liquidity Position - HEICO's current ratio at the end of the third quarter of fiscal 2025 was 3.35, well above the industry's average of 1.80, indicating strong short-term liquidity [5][8] Expansion Through Acquisitions - In July 2025, HEICO completed the acquisition of Gables Engineering, enhancing its presence in the aerospace OEM manufacturing and aftermarket services market [6] - In April 2025, HEICO acquired Rosen Aviation, which is expected to enhance its product offerings in in-flight entertainment products [7] - These acquisitions are projected to expand and diversify HEICO's product portfolio and enhance its customer base, supporting revenue and cash flow growth [9] Stock Performance - Over the past year, HEI shares have increased by 25.1%, outperforming the sector's growth of 19.7% [10]