HEICO (US:HEI) ZACKS·2025-12-12 15:06Core Insights - HEICO (HEI) is positioned as a strong investment option in the aerospace sector due to its robust market presence, solid liquidity, and low debt levels [1][8] Growth Projections - The Zacks Consensus Estimate for HEI's fiscal 2025 earnings per share is $4.77, reflecting a year-over-year growth of 30% [2] - The consensus estimate for fiscal 2025 sales is $4.43 billion, indicating a year-over-year growth of 14.8% [2] - HEI's long-term earnings growth rate is projected at 18.9% over the next three to five years [2] - The company has delivered an average earnings surprise of 13.35% in the last four quarters [2][8] Debt Position - HEI's total debt-to-capital ratio stands at 36.8%, which is better than the industry average of 49.4% [3] - The times interest earned (TIE) ratio is 7.27, indicating the company can comfortably meet its interest obligations [3] Liquidity - HEI's current ratio is 3.35, demonstrating its ability to meet short-term liabilities without difficulties [4] Market Momentum - HEICO is benefiting from increased global air travel, leading to higher demand for aftermarket replacement parts and repair services [5] - The company has shown strong results in its Flight Support Group, with improved sales and margins due to steady momentum in the aerospace aftermarket [5] - HEICO maintains a strong position in the U.S. defense sector, supplying critical parts and services, which aligns with rising defense spending [6] Stock Performance - HEI shares have gained 32.6% year-to-date, outperforming the industry's growth of 31.7% [7]