Heico Corporation — The Defining Attributes of a Very Special Business

HEI (monitor): HEICO is a repeatable aerospace compounder whose 20,000+ FAA-approved parts, two rare PMA ODAs and nearly four-decade record of zero part failures underpin a durable niche. Revenue has compounded at 15%, accelerating to ~24% over three- and five-year periods, while margins have risen. Wencor demonstrated acquisition discipline, but at ~25x TTM P/EBITDA the shares are not cheap; HEI.A is at best perhaps fairly valued, offering insufficient downside protection today.

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