HeicoHEI +2.13%93 Net Margin % is 16.99% as of Apr. 2026, which is 13% above its 10-year median of 14.99. GuruFocus rates HEI with a GF Score™ of 93/100 and a GF Value™ of $360.03 (Fairly Valued). The stock has 4 warning signs investors should review. Among 347 Aerospace & Defense companies, Heico ranks better than 83.86% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Heico's Net Income for the
three
months ended in Apr. 2026 was $234 Mil. Heico's Revenue for the
three
months ended in Apr. 2026 was $1,376 Mil. Therefore, Heico's net margin for the quarter that ended in Apr. 2026 was 16.99%.
The historical rank and industry rank for Heico's Net Margin % or its related term are showing as below:
HEI'
s Net Margin % Range Over the Past 10 Years
Min: 11.35 Med: 14.99 Max: 17.57
Current: 16.08
HEI's Net Margin % is ranked better than 83.86% of 347
companies
in the Aerospace & Defense industry
Industry Median: 4.9
vs HEI: 16.08
Heico (NYSE:HEI) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Heico Net Margin % Related Terms
Heico Net Margin % Historical Data
* Premium members only.
The historical data trend for Heico's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Heico's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Heico Net Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Heico's Net Margin % distribution charts can be found below:
* The bar in red indicates where Heico's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Heico (HEI) has a Net Margin % of 16.99% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Heico and its competitors. This is 13% above median its historical median of 14.99. Over the past decade, Heico's Net Margin % has ranged from 11.35 to 17.57. According to the industry distribution chart, Heico ranks #56 out of 347 companies in the Aerospace & Defense industry, placing it in the top 16.1%.
Is Heico's Net Margin % too high?
Heico's current Net Margin % of 16.99% is 13% above median its 10-year median of 14.99. Over the past 10 years, this metric has ranged from a low of 11.35 to a high of 17.57. The Aerospace & Defense industry median Net Margin % is 4.90. Heico's value of 16.99% is 246.7% above this industry median. Based on the distribution chart, Heico ranks #56 out of 347 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Heico has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Heico's Net Margin % compare to AXON and CW?
According to the Aerospace & Defense industry distribution chart, Heico ranks #56 out of 347 companies for Net Margin %. This places Heico in the top 16% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.90. Heico's value of 16.99% is 246.7% above this benchmark. Historically, Heico's own Net Margin % has ranged from 11.35 to 17.57 over the past decade. While the company's 10-year median is 14.99 vs. the industry median of 4.90, Heico has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Aerospace & Defense company?
The median Net Margin % among Aerospace & Defense companies is 4.90, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Heico's current Net Margin % of 16.99% is 246.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Heico and its competitors. For the Aerospace & Defense industry, the median Net Margin % is 4.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heico's current Net Margin % is 16.99%, which is 13% above median its own 10-year median of 14.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heico stock overvalued right now?
Based on GuruFocus' analysis, Heico (HEI) is currently considered Fairly Valued. The stock's GF Value™ is $360.03, compared to a current price of $342.45 — trading 4.9% below its estimated fair value. The current Net Margin % is 16.99%, which is 13% above median its 10-year median of 14.99 and 246.7% above the Aerospace & Defense industry median of 4.90. Heico's overall GF Score™ is 93/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Heico (HEI), the current Net Margin % is 16.99% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Heico (HEI) Overvalued in 2026?
Based on GuruFocus' analysis, Heico stock appears to be undervalued.
The current stock price of $342.45 is trading 4.9% below its estimated GF Value™ of $360.03.
GuruFocus considers Heico to be Fairly Valued.
Key valuation signals for HEI:
Net Margin %: 16.99% (13% above median its 10-year median of 14.99)
GF Value™: $360.03 vs. price of $342.45 (4.9% below fair value)
Industry Position: 246.7% above the Aerospace & Defense median (#56 of 347)
No single metric tells the full story. See the HEI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heico is an aerospace and defense supplier that focuses on creating replacement parts for commercial aircraft and components for defense products. In commercial aerospace, Heico is the largest independent producer of replacement aircraft parts. In the defense market, the company produces niche subcomponents used in targeting technology as well as simulation equipment, among other categories. It operates two segments: the flight support group and the electronic technologies group. Both supply the aerospace and defense sectors to different degrees. Heico is persistently acquisitive, focusing on companies in similar or adjacent markets that offer strong cash flow and profitable growth potential.
93GF Score
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