Operating Margin

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Price: 257.98 USD -1.57% Market Closed

Market Cap: $36.1B

22.7%

Improving

by 0.9%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

22.7%

Operating Income

$1B

Revenue

$4.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

22.7%

Operating Income

$1B

Revenue

$4.5B

Peer Comparison

Country	Company	Market Cap	Operating Margin
US	HEICO Corp NYSE:HEI	46.6B USD	Loading...
US	TransDigm Group Inc NYSE:TDG	80B USD	Loading...
US	RTX Corp LSE:0R2N	264.5B USD	Loading...
US	Raytheon Technologies Corp NYSE:RTX	262.7B USD	Loading...
NL	Airbus SE PAR:AIR	163.2B EUR	Loading...
US	Boeing Co NYSE:BA	191.6B USD	Loading...
FR	Safran SA PAR:SAF	130.8B EUR	Loading...
UK	Rolls-Royce Holdings PLC LSE:RR	106B GBP	Loading...
US	Lockheed Martin Corp NYSE:LMT	135.9B USD	Loading...
DE	Rheinmetall AG XETRA:RHM	84B EUR	Loading...
US	General Dynamics Corp NYSE:GD	98.1B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

HEICO Corp
Glance View

Economic Moat

None

Market Cap

36.1B USD

Industry

Aerospace & Defense

HEICO Corp., an intriguing player in the aerospace and defense sector, has crafted a compelling narrative of growth through a unique blend of innovation and acquisitions. Founded in 1957, the company is celebrated for its unwavering focus on producing niche products that serve high-demand, highly regulated industries. HEICO operates mainly through two segments: the Flight Support Group and the Electronic Technologies Group. The Flight Support Group provides FAA-approved, cost-effective replacement parts, repair services, and engine component maintenance for commercial and military aircraft. Meanwhile, the Electronic Technologies Group specializes in designing and manufacturing sophisticated electronic components for defense, space, medical, and telecommunications markets. This diversified approach allows HEICO to capitalize on its engineering prowess while serving a broad spectrum of critical, non-discretionary markets. HEICO's success is driven by its disciplined strategy of acquiring companies that complement its existing capabilities while expanding its market reach. Every acquisition underpins the company’s philosophy of preserving the entrepreneurial spirit of its subsidiaries, fostering an environment where innovation thrives. This approach is augmented by their strong emphasis on customer service, ensuring they maintain long-term relationships with major aerospace and defense contractors. Revenue flows steadily as airlines and military contractors consistently demand high-quality, reliable products and services that ensure operational efficiency and safety. By carefully balancing organic growth with strategic acquisitions, HEICO has cemented itself as a formidable presence in its sector, consistently delivering impressive financial performance and demonstrating resilience in the face of cyclical industry trends.

View HEI.A Analysis

HEI.A Intrinsic Value

Overvaluation 42%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

HEICO Corp
NYSE:HEI.A

Peer Comparison

Market Distribution

Other Profitability Ratios

HEICO Corp
Glance View

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HEICO Corp NYSE:HEI.A