Heico Corporation HEI

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
78/100
Strong

About Heico Corporation

HEICO Corporation provides aerospace, defense, and electronic related products and services in the United States and internationally. Its Flight Support Group segment offers jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components and assemblies. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and … Full HEI analysis →

Competitive advantage assessment

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.96), demonstrating pricing resilience across cycles.
  • ROIC Sustainably Above Peers ROIC at 81.9th percentile exceeds peers and WACC, demonstrating superior capital allocation.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
89

Where HEI ranks in Aerospace & Defense

Heico Corporation ranks #2 of 80 scored companies in Aerospace & Defense by moat score — the top 2%. The widest moat in the group is Howmet Aerospace Inc. (HWM) at 80/100.

Moat scores for companies ranked near HEI in Aerospace & Defense
# Company Moat score Rating
1 Howmet Aerospace Inc. HWM 80/100 Strong
2 Heico Corporation HEI 78/100 Strong
3 Heico Corporation HEI-A 78/100 Strong
4 Transdigm Group Incorporated TDG 78/100 Strong
5 Curtiss-Wright Corporation CW 77/100 Strong
6 Optex Systems Holdings, Inc. OPXS 74/100 Moderate
7 Innovative Solutions and Suppor ISSC 73/100 Moderate
8 Coda Octopus Group, Inc. CODA 72/100 Moderate
9 Loar Holdings Inc. LOAR 72/100 Moderate

See every General Corporate company ranked by moat score →

How HEI scores on the Corporate Default defenses

Pricing Power

Score 89 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 74 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 80 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 85 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 66 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 69 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding HEI's moat

What is Heico Corporation's moat score?

Heico Corporation (HEI) scores 78 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #2 of 80 scored companies in Aerospace & Defense, the top 2%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 79 companies in Aerospace & Defense. Its strongest defense is Pricing Power (89/100) and its weakest is Resilience (66/100).

How does Heico Corporation compare with other Aerospace & Defense companies?

Heico Corporation ranks #2 of 80 scored companies in Aerospace & Defense by moat score. The widest moat in Aerospace & Defense is Howmet Aerospace Inc. (HWM) at 80/100. The companies ranked closest are Howmet Aerospace Inc. (HWM) at 80 just above it and Heico Corporation (HEI-A) at 78 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 79 companies in Aerospace & Defense. The defenses are then weighted to produce the overall score out of 100.

Why is Heico Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Heico Corporation?

The Corporate Default template measures 6 defenses, and HEI scores: Pricing Power (89), Cost Advantage (74), Customer Stickiness (80), Capital Efficiency (85), Resilience (66), Scale & Market Position (69). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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