Is HEICO CORP (HEI-A) Halal?

NYSE Industrials United States $33.1B
✓ HALAL
Confidence: 95/100
HEICO CORP (HEI-A) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 5.9% against the AAOIFI threshold of 30%, HEICO CORP comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Aerospace & Defense), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from October 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 5.9%
/ 30%
0.6%
/ 30%
2.0%
/ 30%
0.1%
/ 5%
✓ HALAL
DJIM 5.9%
/ 33%
0.6%
/ 33%
2.0%
/ 33%
0.1%
/ 5%
✓ HALAL
MSCI 25.8%
/ 33%
2.6%
/ 33%
8.9%
/ 33%
0.1%
/ 5%
✓ HALAL
S&P 5.9%
/ 33%
0.6%
/ 33%
2.0%
/ 33%
0.1%
/ 5%
✓ HALAL
FTSE 25.8%
/ 33%
2.6%
/ 33%
8.9%
/ 50%
0.1%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
41.1
Forward: 48.2
EPS
$5.05
Dividend Yield
12.0%
Payout: 4.8%
P/B Ratio
6.4
EV/EBITDA
25.1
EV: $31.8B
Revenue
$4.5B
Growth: 14.4%
Beta
1.0
Average volatility
Current Ratio
3.1

Profitability

Gross Margin 39.6%
Operating Margin 22.2%
Net Margin 15.4%
Return on Equity (ROE) 16.6%
Return on Assets (ROA) 7.9%

Cash Flow & Balance Sheet

Operating Cash Flow$934M
Free Cash Flow$861M
Total Debt$2.2B
Debt-to-Equity49.7
Current Ratio3.1
Total Assets$8.5B

Price & Trading

Last Close$208.33
50-Day MA$243.52
200-Day MA$248.06
Avg Volume317K
Beta1.0
52-Week Range
$180.36
$279.66

About HEICO CORP (HEI-A)

CEO
Mr. Eric A. Mendelson
Employees
11,100
Sector
Industrials
Industry
Aerospace & Defense
Country
United States
Exchange
NYSE
Market Cap
$33.1B
Currency
USD

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 general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and commercial aircraft surfaces, as well as for avionics and navigation systems, subcomponents, and other military aircraft instruments. The company's Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio frequency (RF) interference shielding and suppression filters; power electronics; power conversion and interface products; interconnection devices; and underwater locator and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; memory products and specialty semiconductors; environment connectivity products and molded cable assemblies; RF and microwave products; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems and airborne antennas; nuclear radiation detectors; power amplifiers; ceramic-to-metal feedthroughs and connectors; technical surveillance countermeasures equipment; RF receivers and sources; radiation assurance, embedded computing, and silicone solutions; test sockets and adapters; and electronic components and rotary joint assemblies. The company was incorporated in 1957 and is headquartered in Hollywood, Florida.

Purification Calculator

As a halal stock with 0.10% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Industrials

Frequently Asked Questions

Is HEICO CORP (HEI-A) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), HEICO CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is HEICO CORP's debt ratio?

HEICO CORP's debt ratio is 5.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 25.8%.

Does HEICO CORP require dividend purification?

Yes, HEICO CORP has an impermissible income ratio of 0.10%, which means 0.10% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are HEICO CORP's key financial metrics?

HEICO CORP has a market capitalization of $33.1B, trailing P/E ratio of 41.1, and revenue of $4.5B. The company maintains a gross margin of 39.6% and a net margin of 15.4%. Return on equity stands at 16.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.