The Short Answer
HEICO stock (HEI) is generally considered halal by most Islamic scholars and Sharia screening criteria. Aerospace aftermarket parts manufacturing is a clearly permissible industrial business. HEICO has a long track record of disciplined acquisitions, low leverage, and consistent compounding — making it one of the cleaner industrials names available to Muslim investors.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-30; calculated 2026-07-14.
2,587.29 / 9,592.213
210.335 / 9,592.213
945.29 / 9,592.213
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 26.97%, liquidity/assets is 2.19% and receivables plus cash/assets is 9.85%; available ratios pass but the income input is unavailable and defense exposure is not quantified.
- Financial
- Pass
- Overall
- Incomplete
The examined total-assets financial ratios pass; defense end-use and market-cap records remain incomplete. This is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and identifiable liquidity/assets are below the examined limits; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed reproducible market-cap history is not stored; a spot estimate is not substituted.
Business-activity disclosure
HEICO makes aerospace components, electronics and aftermarket parts. Manufacturing is generally permissible, while defense end-use and acquisition mix require qualitative scholarly review.
Limitation: The filing does not quantify defense-related revenue under a universal Sharia taxonomy or provide a reproducible market-cap history.
Purification
Interest income is not separately disclosed; investors should seek qualified guidance and ZakatInvest does not prescribe a fixed percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from HEICO's April 30, 2026 Form 10-Q.
- Debt is current debt of 3.402 plus long-term debt and capital lease obligations of 2,583.888; operating leases are excluded.
- Cash is 210.335 and accounts receivable is 734.955.
- Six-month net sales are 2,554.295.
- The filing does not isolate a universal prohibited-revenue or interest-income numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
The main considerations are a small amount of defense and military exposure (which most scholars treat as permissible) and minor interest income on cash reserves that is addressable through standard dividend purification.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
HEICO's Business Activity
HEICO Corporation operates two primary segments:
- Flight Support Group: FAA-approved aftermarket replacement parts (PMA parts) for commercial and military aircraft, plus specialty distribution and repair services
- Electronic Technologies Group: Electronic, electro-optical, and microwave products for defense, space, aerospace, medical, and industrial customers
Aerospace component manufacturing is unambiguously permissible. Aviation transportation is essential infrastructure, and HEICO's focus on cost-effective aftermarket parts actually helps reduce operating costs across the global aviation industry.
Financial Ratios (April 30, 2026)
Using HEICO's latest Form 10-Q, stated in USD millions:
- Interest-bearing debt / total assets: 26.97% ✅ (2,587.290 / 9,592.213)
- Cash / total assets: 2.19% ✅ (210.335 / 9,592.213)
- Receivables + cash / total assets: 9.85% ✅ (945.290 / 9,592.213)
- Interest income: Not separately disclosed
The available asset-based financial ratios pass; defense exposure, interest income and market-cap methods remain incomplete.
Concerns to Be Aware Of
1. Defense and Military Exposure
A meaningful portion of HEICO's Electronic Technologies Group serves defense and military customers. The mainstream scholarly view is that defense supply is permissible — protecting national interests and territorial integrity is a legitimate state function. A minority of scholars recommend avoiding defense exposure entirely on ethical grounds. If you fall in that camp, the defense weighting is still a minority of HEICO's consolidated business.
2. Acquisition-Driven Strategy
HEICO grows largely through bolt-on acquisitions of niche aerospace and electronics businesses. While some of these involve assumed debt or earn-outs, total leverage has historically remained well within Sharia thresholds.
3. Interest Income on Cash
HEICO does not separately disclose interest income in this filing. Investors should seek qualified guidance on purification; ZakatInvest does not prescribe a fixed percentage.
No fixed purification percentage is prescribed by ZakatInvest.
How to Read the Quantitative Result
The available financial ratios pass under the examined methods, but the record is incomplete because defense exposure, income classification and market-cap methods are not fully quantified. No external agency classification is implied.
Bottom Line
HEICO (HEI) is halal on the available financial screens, with an incomplete overall record. Aerospace manufacturing is generally permissible, while defense end-use and income classification require qualified review.
For Muslim investors seeking quality industrial compounding with strong Sharia compliance, HEICO is a high-quality option in the aerospace category.
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