HEXCEL CORP (HXL) Stock Fundamental Analysis
NYSE:HXL - New York Stock Exchange, Inc. - US4282911084 - Common Stock - Currency: USD
Taking everything into account, HXL scores 5 out of 10 in our fundamental rating. HXL was compared to 65 industry peers in the Aerospace & Defense industry. HXL has an average financial health and profitability rating. HXL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HXL had positive earnings in the past year.
In the past year HXL had a positive cash flow from operations.
Each year in the past 5 years HXL has been profitable.
HXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HXL has a Return On Assets of 4.48%. This is in the better half of the industry: HXL outperforms 62.50% of its industry peers.
HXL's Return On Equity of 8.12% is fine compared to the rest of the industry. HXL outperforms 60.94% of its industry peers.
With a decent Return On Invested Capital value of 8.04%, HXL is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HXL is in line with the industry average of 8.39%.
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
HXL's Profit Margin of 6.60% is fine compared to the rest of the industry. HXL outperforms 64.06% of its industry peers.
HXL's Profit Margin has declined in the last couple of years.
HXL has a Operating Margin of 12.04%. This is in the better half of the industry: HXL outperforms 76.56% of its industry peers.
HXL's Operating Margin has declined in the last couple of years.
HXL has a Gross Margin (24.06%) which is in line with its industry peers.
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
HXL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HXL has been reduced compared to 1 year ago.
The number of shares outstanding for HXL has been reduced compared to 5 years ago.
The debt/assets ratio for HXL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.41 indicates that HXL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.41, HXL is doing good in the industry, outperforming 60.94% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 4.28, HXL is doing good in the industry, outperforming 76.56% of the companies in the same industry.
HXL has a Debt/Equity ratio of 0.51. This is a neutral value indicating HXL is somewhat dependend on debt financing.
HXL has a Debt to Equity ratio (0.51) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.41 |
ROIC/WACC0.81
WACC9.94%
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.
Looking at the Quick ratio, with a value of 1.39, HXL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.00% over the past year.
The earnings per share for HXL have been decreasing by -10.53% on average. This is quite bad
The Revenue has been growing slightly by 4.64% in the past 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
HXL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.11% yearly.
HXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y-5.58%
EPS Next 2Y12.35%
EPS Next 3Y16.24%
EPS Next 5Y18.11%
Revenue Next Year0.57%
Revenue Next 2Y5.59%
Revenue Next 3Y6.83%
Revenue Next 5Y7.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.75, which means the current valuation is very expensive for HXL.
Based on the Price/Earnings ratio, HXL is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, HXL is valued at the same level.
With a Price/Forward Earnings ratio of 21.23, HXL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HXL indicates a somewhat cheap valuation: HXL is cheaper than 73.44% of the companies listed in the same industry.
HXL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 21.23 |
4.2 Price Multiples
HXL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HXL is cheaper than 78.13% of the companies in the same industry.
89.06% of the companies in the same industry are more expensive than HXL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.77 | ||
| EV/EBITDA | 14.48 |
4.3 Compensation for Growth
The decent profitability rating of HXL may justify a higher PE ratio.
HXL's earnings are expected to grow with 16.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.35%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, HXL has a reasonable but not impressive dividend return.
HXL's Dividend Yield is rather good when compared to the industry average which is at 1.29. HXL pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, HXL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of HXL decreases each year by -1.49%.
HXL has paid a dividend for at least 10 years, which is a reliable track record.
HXL has decreased its dividend 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%
54.39
+0.03 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners102.86%
Inst Owner Change-1.3%
Ins Owners0.24%
Ins Owner Change2.84%
Market Cap4.37B
Analysts65.83
Price Target60.2 (10.68%)
Short Float %4.31%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)-0.58%
PT rev (3m)-20.96%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-13.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.39%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-5.48%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-4.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 21.23 | ||
| P/S | 2.32 | ||
| P/FCF | 23.77 | ||
| P/OCF | 16.29 | ||
| P/B | 2.85 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 14.48 |
EPS(TTM)1.96
EY3.6%
EPS(NY)2.56
Fwd EY4.71%
FCF(TTM)2.29
FCFY4.21%
OCF(TTM)3.34
OCFY6.14%
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 | 4.41 |
F-Score7
WACC9.94%
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 5Y18.11%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-3.35%
Revenue Next Year0.57%
Revenue Next 2Y5.59%
Revenue Next 3Y6.83%
Revenue Next 5Y7.57%
EBIT growth 1Y9.7%
EBIT growth 3Y49.54%
EBIT growth 5Y-11.1%
EBIT Next Year49.27%
EBIT Next 3Y26.25%
EBIT Next 5Y22.2%
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%