HEXCEL CORP (HXL) Stock Fundamental Analysis
NYSE:HXL - New York Stock Exchange, Inc. - US4282911084 - Common Stock - Currency: USD
HXL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. HXL has only an average score on both its financial health and profitability. HXL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HXL was profitable.
In the past year HXL had a positive cash flow from operations.
Each year in the past 5 years HXL has been profitable.
In the past 5 years HXL always reported a positive cash flow from operatings.
1.2 Ratios
HXL's Return On Assets of 4.48% is fine compared to the rest of the industry. HXL outperforms 60.94% of its industry peers.
The Return On Equity of HXL (8.12%) is better than 60.94% of its industry peers.
HXL's Return On Invested Capital of 8.04% is fine compared to the rest of the industry. HXL outperforms 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HXL is in line with the industry average of 8.03%.
The 3 year average ROIC (7.41%) for HXL is below the current ROIC(8.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 8.12% | ||
| ROIC | 8.04% |
ROA(3y)4.31%
ROA(5y)2.92%
ROE(3y)7.64%
ROE(5y)5.22%
ROIC(3y)7.41%
ROIC(5y)5.38%
1.3 Margins
With a decent Profit Margin value of 6.60%, HXL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
HXL's Profit Margin has declined in the last couple of years.
HXL's Operating Margin of 12.04% is fine compared to the rest of the industry. HXL outperforms 76.56% of its industry peers.
In the last couple of years the Operating Margin of HXL has declined.
The Gross Margin of HXL (24.06%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of HXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.04% | ||
| PM (TTM) | 6.6% | ||
| GM | 24.06% |
OM growth 3Y32.53%
OM growth 5Y-7.22%
PM growth 3Y78.75%
PM growth 5Y-11.81%
GM growth 3Y9.35%
GM growth 5Y-1.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HXL is destroying value.
The number of shares outstanding for HXL has been reduced compared to 1 year ago.
HXL has less shares outstanding than it did 5 years ago.
HXL has a worse debt/assets ratio than last year.
2.2 Solvency
HXL has an Altman-Z score of 4.31. This indicates that HXL is financially healthy and has little risk of bankruptcy at the moment.
HXL has a Altman-Z score of 4.31. This is in the better half of the industry: HXL outperforms 62.50% of its industry peers.
The Debt to FCF ratio of HXL is 4.28, which is a neutral value as it means it would take HXL, 4.28 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HXL (4.28) is better than 78.13% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that HXL is somewhat dependend on debt financing.
HXL has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.31 |
ROIC/WACC0.81
WACC9.98%
2.3 Liquidity
A Current Ratio of 2.59 indicates that HXL has no problem at all paying its short term obligations.
HXL has a Current ratio (2.59) which is in line with its industry peers.
HXL has a Quick Ratio of 1.39. This is a normal value and indicates that HXL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.39, HXL perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
HXL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.00%, which is quite good.
The earnings per share for HXL have been decreasing by -10.53% on average. This is quite bad
Looking at the last year, HXL shows a small growth in Revenue. The Revenue has grown by 4.64% in the last year.
Measured over the past years, HXL shows a decrease in Revenue. The Revenue has been decreasing by -4.18% on average per year.
EPS 1Y (TTM)12%
EPS 3Y95.9%
EPS 5Y-10.53%
EPS Q2Q%-15.91%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-3.35%
3.2 Future
The Earnings Per Share is expected to grow by 15.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.39% on average over the next years.
EPS Next Y-5.58%
EPS Next 2Y12.35%
EPS Next 3Y16.24%
EPS Next 5Y15.88%
Revenue Next Year0.73%
Revenue Next 2Y5.37%
Revenue Next 3Y6.33%
Revenue Next 5Y6.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HXL is valuated quite expensively with a Price/Earnings ratio of 27.28.
Compared to the rest of the industry, the Price/Earnings ratio of HXL indicates a somewhat cheap valuation: HXL is cheaper than 76.56% of the companies listed in the same industry.
HXL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.17.
A Price/Forward Earnings ratio of 20.87 indicates a rather expensive valuation of HXL.
Based on the Price/Forward Earnings ratio, HXL is valued a bit cheaper than 73.44% of the companies in the same industry.
HXL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 20.87 |
4.2 Price Multiples
HXL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HXL is cheaper than 82.81% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HXL is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.37 | ||
| EV/EBITDA | 13.85 |
4.3 Compensation for Growth
HXL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HXL's earnings are expected to grow with 16.24% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.35%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
HXL has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
HXL's Dividend Yield is rather good when compared to the industry average which is at 1.36. HXL pays more dividend than 87.50% of the companies in the same industry.
With a Dividend Yield of 1.31, HXL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of HXL decreases each year by -1.49%.
HXL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HXL decreased in the last 3 years.
Dividend Growth(5Y)-1.49%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HXL pays out 40.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.56%
EPS Next 2Y12.35%
EPS Next 3Y16.24%
NYSE:HXL (5/29/2025, 2:42:05 PM)
53.47
+1.84 (+3.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners104.62%
Inst Owner Change-1.3%
Ins Owners0.74%
Ins Owner Change3.35%
Market Cap4.30B
Analysts65.83
Price Target58.84 (10.04%)
Short Float %3.17%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.6
Dividend Growth(5Y)-1.49%
DP40.56%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.08%
Min EPS beat(2)-14.27%
Max EPS beat(2)2.1%
EPS beat(4)3
Avg EPS beat(4)-1.21%
Min EPS beat(4)-14.27%
Max EPS beat(4)5.83%
EPS beat(8)5
Avg EPS beat(8)-2.93%
EPS beat(12)8
Avg EPS beat(12)3.1%
EPS beat(16)12
Avg EPS beat(16)65.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.93%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)2.62%
Revenue beat(8)2
Avg Revenue beat(8)-1.48%
Revenue beat(12)4
Avg Revenue beat(12)-0.91%
Revenue beat(16)5
Avg Revenue beat(16)-0.91%
PT rev (1m)-2.67%
PT rev (3m)-20.5%
EPS NQ rev (1m)-12.71%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)-10.52%
EPS NY rev (3m)-12.39%
Revenue NQ rev (1m)-3.83%
Revenue NQ rev (3m)-4.79%
Revenue NY rev (1m)-2.17%
Revenue NY rev (3m)-4.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 20.87 | ||
| P/S | 2.28 | ||
| P/FCF | 23.37 | ||
| P/OCF | 16.02 | ||
| P/B | 2.81 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 13.85 |
EPS(TTM)1.96
EY3.67%
EPS(NY)2.56
Fwd EY4.79%
FCF(TTM)2.29
FCFY4.28%
OCF(TTM)3.34
OCFY6.24%
SpS23.47
BVpS19.06
TBVpS16.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 8.12% | ||
| ROCE | 9.23% | ||
| ROIC | 8.04% | ||
| ROICexc | 8.35% | ||
| ROICexgc | 9.29% | ||
| OM | 12.04% | ||
| PM (TTM) | 6.6% | ||
| GM | 24.06% | ||
| FCFM | 9.75% |
ROA(3y)4.31%
ROA(5y)2.92%
ROE(3y)7.64%
ROE(5y)5.22%
ROIC(3y)7.41%
ROIC(5y)5.38%
ROICexc(3y)7.9%
ROICexc(5y)5.72%
ROICexgc(3y)8.84%
ROICexgc(5y)6.4%
ROCE(3y)8.51%
ROCE(5y)6.18%
ROICexcg growth 3Y53.57%
ROICexcg growth 5Y-7.42%
ROICexc growth 3Y53.8%
ROICexc growth 5Y-7.49%
OM growth 3Y32.53%
OM growth 5Y-7.22%
PM growth 3Y78.75%
PM growth 5Y-11.81%
GM growth 3Y9.35%
GM growth 5Y-1.91%
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.28 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 68.73% | ||
| Cap/Sales | 4.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.66% | ||
| Profit Quality | 147.79% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 4.31 |
F-Score7
WACC9.98%
ROIC/WACC0.81
Cap/Depr(3y)72.44%
Cap/Depr(5y)54.69%
Cap/Sales(3y)5.15%
Cap/Sales(5y)4.19%
Profit Quality(3y)123.7%
Profit Quality(5y)362.84%
High Growth Momentum
Growth
EPS 1Y (TTM)12%
EPS 3Y95.9%
EPS 5Y-10.53%
EPS Q2Q%-15.91%
EPS Next Y-5.58%
EPS Next 2Y12.35%
EPS Next 3Y16.24%
EPS Next 5Y15.88%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-3.35%
Revenue Next Year0.73%
Revenue Next 2Y5.37%
Revenue Next 3Y6.33%
Revenue Next 5Y6.39%
EBIT growth 1Y9.7%
EBIT growth 3Y49.54%
EBIT growth 5Y-11.1%
EBIT Next Year49.27%
EBIT Next 3Y26.25%
EBIT Next 5Y20.42%
FCF growth 1Y93.28%
FCF growth 3Y17.9%
FCF growth 5Y-6.7%
OCF growth 1Y59.1%
OCF growth 3Y24.1%
OCF growth 5Y-10.01%