HEICO Corp (NYSE:HEI)

CAPS Rating: 5 out of 5

Manufacturer of FAA approved jet engine replacement parts, other than the original equipment manufacturers and their subcontractors. Also manufactures electronic equipment for aerospace, defense, and electronics industries.

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Member Avatar jtbutler (33.77) Submitted: 7/19/2014 3:37:57 AM : Outperform Start Price: $49.97 HEI Score: -5.28

This company is similar to a junkyard for aircraft parts. Exception being, the parts they sell are very highly regulated by the FAA and have to pass very stringent standards. Parts are both scheduled to be replaced and also have to be replaced due to wear and tear - both are great, but regulation in particular creates strong re-occuring revenue and cash flow.

The economics of the business are great - the marginal cost is low and marginal benefit is high for airlines to replace parts relatively quickly (versus pushing the limit and having an airline accident). HEI is much cheaper than OEM's and creates a great value proposition for airlines. Regulation creates huge barriers to entry and HEI's growth creates more cash for acquisitions, which give them more offerings to become even more entrenched and become a one stop shop for airlines. Their shear size in this niche market also helps acquisitions turn accretive easily (by leveraging their platform/distribution)

Think of them as picks and shovels play on aircraft. Very similar business dynamics and economics when compared to NOV and LKQ in my opinion, which is good company to keep. Add in 4-5 trillion in aircraft growth over the next 20 years and you've got yourself a hell of an investment.

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Member Avatar SmoothHughes (88.49) Submitted: 4/3/2014 12:21:31 PM : Outperform Start Price: $61.43 HEI Score: -27.29

"Your fat margins are my opportunity," said Heico to airplane OEMs. Going after the obscene mark-ups charged by plane manufacturers on replacement parts is where profits come from. Couple this with the moat provided by FAA approval requirements and the secular trend in more air travel and we have a long-term winner.

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Member Avatar motto1628 (40.61) Submitted: 3/27/2014 12:52:02 AM : Outperform Start Price: $58.55 HEI Score: -25.62

cheap alternative to OEM jet replacement parts
- Father and two sons involved in business
- stock advisor pick

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Member Avatar travlinmann (49.21) Submitted: 3/18/2014 2:14:15 AM : Outperform Start Price: $61.68 HEI Score: -28.57

History of prudent company acquisitions and wide moat for competitors to enter market to make airline parts

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Member Avatar mfoolid (67.32) Submitted: 9/30/2013 1:19:37 PM : Outperform Start Price: $53.87 HEI Score: -28.97

David's August outperform pick

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Member Avatar Dennyboy01 (34.93) Submitted: 8/1/2013 4:46:17 PM : Outperform Start Price: $45.81 HEI Score: -12.39

This stock has performed very well. The management team has been able to show continued to outperform S&P 500

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Member Avatar Manny2179 (25.91) Submitted: 6/26/2013 6:48:23 PM : Outperform Start Price: $40.18 HEI Score: -4.59

WIth the production of the 737 Max, A320 NEO on the horizon this company is going to rake in the profits...big margins on parts and lots of quantity to be sold to both Boeing and Airbus. I wouldn't be surprised if this stock went 4X in a few years.

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Member Avatar Jkspotr62 (43.53) Submitted: 9/3/2012 8:34:22 AM : Outperform Start Price: $26.17 HEI Score: +40.46

Heico reminds me of LKQ. Both deal in after market parts for their specific industries, both have consistent, strong earnings over an extended period of time, and both companies are well managed. Like LKQ, I believe Heico will outperform the market in the the future.

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Member Avatar LurkyLurky (99.82) Submitted: 2/18/2012 3:52:14 PM : Outperform Start Price: $35.21 HEI Score: -9.75

http://www.smartmoney.com/invest/strategies/the-400-man-1328818316857/#printMode
"There are huge barriers to entry, he says, the replacement cycle is driven by regulation, and customers are not aggressive about demanding lower prices."

PE is 32 right now; has the opportunity passed?

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Member Avatar herb2020 (< 20) Submitted: 5/7/2011 4:08:13 AM : Outperform Start Price: $28.62 HEI Score: +18.14

Fantastic management and products. The best In class.

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Member Avatar valunvesthere (< 20) Submitted: 12/2/2010 3:25:20 AM : Outperform Start Price: $25.72 HEI Score: +20.99

Profile
HEICO Corp.
3000 Taft Street
Hollywood, FL 33021
United States - Map
Phone: 954-987-4000
Fax: 954-987-8228
Website: www.heico.com

Details
Index Membership: N/A
Sector: Industrial Goods
Industry: Aerospace/Defense Products & Services
Full Time Employees: 2,100

Business Summary

HEICO Corporation, through its subsidiaries, engages in the design, manufacture, and sale of aerospace, defense, and electronics related products, as well as in the provision of related services in the United States and internationally. Its Flight Support Group segment offers jet engine and aircraft component replacement parts. It manufactures thermal insulation blankets primarily for aerospace, defense, and commercial applications; and provides specialty components as a subcontractor for aerospace and industrial original equipment manufacturers, and the United States government. This segment also distributes hydraulic, pneumatic, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets. In addition, it provides repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial aircraft. The company?s Electronic Technologies Group segment offers electronic, microwave, and electro-optical products, including infrared simulation and test equipment, laser rangefinder receivers, electrical and back-up power supplies, electromagnetic interference and radio frequency interference shielding, high power capacitor charging power supplies, amplifiers, photo detectors, amplifier modules, laser diode drivers, arc lamp power supplies, custom power supply designs, cable assemblies, high voltage interconnection devices and wire, high voltage energy generators, high frequency power delivery systems, and high-speed interface products primarily for the aviation, defense, space, medical, and electronics industries. HEICO Corporation primarily serves commercial and cargo airlines, repair and overhaul facilities, other aftermarket suppliers of aircraft engine and airframe materials, military units, and electronic manufacturing service companies. It has strategic alliance with Lufthansa. The company was founded in 1949 and is headquartered in Hollywood, Florida.

***All above information from YAHOO FINANCE***

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Member Avatar Rep07 (28.61) Submitted: 8/15/2009 3:41:27 PM : Underperform Start Price: $18.45 HEI Score: -55.29

Cyclical action in an uncertain market in an adverse environment.

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Member Avatar lenny5150 (< 20) Submitted: 10/5/2008 11:15:43 AM : Outperform Start Price: $14.34 HEI Score: +139.37

Current price does reflect the current value. But as oil price falls, and airlines start to recover, their profits will grow.

Also, they benefit alot during bad economic times.

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Member Avatar nkpfin (< 20) Submitted: 6/27/2008 2:30:42 PM : Outperform Start Price: $15.78 HEI Score: +139.26

is down significantly, gives a good entry point

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Member Avatar deuspecuniae (95.50) Submitted: 4/29/2008 4:24:07 PM : Outperform Start Price: $24.61 HEI Score: +45.14

This stock along with the rest of the defense sector is heading higher. Say hello to investors and money managers looking to survive a recession this summer by jumping into defense. Learn to follow the crowd (mutual funds and such)--it consistantly weathers better than navigating against the grain.

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Member Avatar gtae04 (75.80) Submitted: 1/16/2008 6:58:28 AM : Outperform Start Price: $23.40 HEI Score: +51.92

Great company, solid earnings year over year, commited to 20% min. growth year over year, dividends

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Member Avatar cfreddyretire (53.00) Submitted: 12/24/2007 5:28:44 PM : Outperform Start Price: $19.85 HEI Score: +101.55

HEICO Corp will be the industry leader in aftermarket airplane parts as the worlds fleets get older and airline companies make less money they will be looking for less expensive, high quality replacement parts to keep their fleets operating

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Member Avatar garifool (37.82) Submitted: 8/26/2007 12:48:16 AM : Outperform Start Price: $21.23 HEI Score: +81.51

HEICO Corp Bullish.

This stock has a 4 stars rating by S&P which does not always mean a lot, I've seen stocks drop abruptly after a very high ranking. But still...

Analysts ratings have moved up in the past month.

As mentioned by someone else, it is one of the top five growth stocks from the Wall street Journal.

Thestreet.com has a A+ rating on that stock,

Why not "ride the wave"?

What attracts me to this stock is that they make approved cheaper replacement parts for jet engines, and they have quite an impressive list of high grade airliner clients:Lufthansa,American,United, Delta, Japan Airlines,British Airways.

The Pentagon will have to replace lots of parts, and (supposing that they do care about taxpayers more then about pleasing other "friendly" lobbyists), it could also become a good client.

I'm not too impressed by the dividend, this would not motivate me per se, but the mere fact that they do pay something is a good sign too.

Technically, the stock is bullish for the short, the middle and the long term, and the relative strength is very high!

Third quarter results will be released on August 29th - to buy before or after? this is always a gamble.

The less good aspect is the selling of the insiders in 2007, although not too massive. There are no buys. So this might not be a long term buy.

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Member Avatar Allstar13913 (99.83) Submitted: 7/26/2007 3:47:09 AM : Outperform Start Price: $18.91 HEI Score: +110.71

From the Wasll Street Journal Online:

http://online.wsj.com/article/SB118541817586178585.html?mod=yahoo_hs&ru=yahoo

Some of the best points:

1. Heico turns 16 cents of a dollar of sales into operating profit, versus eight cents for airplane builders and six cents for airlines.

2. Last year, Heico's earnings per share increased 38% on a 45% jump in sales. Cash flow from operations increased 31%.

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Member Avatar 5SsmallcapDIV (77.18) Submitted: 3/12/2007 11:08:50 AM : Outperform Start Price: $17.21 HEI Score: +124.46

5 Star/Small cap/Pays dividend

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