HEXCEL CORP (HXL)
US4282911084 - Common Stock
HXL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. HXL has an excellent financial health rating, but there are some minor concerns on its profitability. HXL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HXL had positive earnings in the past year.
HXL had a positive operating cash flow in the past year.
HXL had positive earnings in each of the past 5 years.
Each year in the past 5 years HXL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.62%, HXL is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Return On Equity of HXL (6.16%) is better than 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.97%, HXL is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
HXL had an Average Return On Invested Capital over the past 3 years of 5.12%. This is below the industry average of 8.57%.
The 3 year average ROIC (5.12%) for HXL is below the current ROIC(6.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.16% | ||
| ROIC | 6.97% |
ROA(3y)2.88%
ROA(5y)3.91%
ROE(3y)5.12%
ROE(5y)7.73%
ROIC(3y)5.12%
ROIC(5y)6.06%
1.3 Margins
HXL's Profit Margin of 5.91% is fine compared to the rest of the industry. HXL outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of HXL has declined.
HXL's Operating Margin of 12.08% is fine compared to the rest of the industry. HXL outperforms 78.13% of its industry peers.
In the last couple of years the Operating Margin of HXL has declined.
Looking at the Gross Margin, with a value of 24.21%, HXL is in line with its industry, outperforming 53.13% of the companies in the same industry.
In the last couple of years the Gross Margin of HXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.08% | ||
| PM (TTM) | 5.91% | ||
| GM | 24.21% |
OM growth 3Y35.92%
OM growth 5Y-6.63%
PM growth 3Y40.95%
PM growth 5Y-14.1%
GM growth 3Y14.92%
GM growth 5Y-1.81%
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.
HXL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, HXL has less shares outstanding
Compared to 1 year ago, HXL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.72 indicates that HXL is not in any danger for bankruptcy at the moment.
HXL has a Altman-Z score of 4.72. This is in the better half of the industry: HXL outperforms 75.00% of its industry peers.
HXL has a debt to FCF ratio of 4.70. This is a neutral value as HXL would need 4.70 years to pay back of all of its debts.
The Debt to FCF ratio of HXL (4.70) is better than 75.00% of its industry peers.
HXL has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
HXL has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 4.72 |
ROIC/WACC0.76
WACC9.13%
2.3 Liquidity
HXL has a Current Ratio of 2.74. This indicates that HXL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HXL (2.74) is better than 71.88% of its industry peers.
A Quick Ratio of 1.68 indicates that HXL should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.68, HXL is doing good in the industry, outperforming 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
HXL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.41%, which is quite impressive.
The Earnings Per Share has been decreasing by -9.91% on average over the past years.
Looking at the last year, HXL shows a quite strong growth in Revenue. The Revenue has grown by 13.39% in the last year.
HXL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.96% yearly.
EPS 1Y (TTM)41.41%
EPS 3Y93.45%
EPS 5Y-9.91%
EPS growth Q2Q7.5%
Revenue 1Y (TTM)13.39%
Revenue growth 3Y5.99%
Revenue growth 5Y-3.96%
Revenue growth Q2Q6.54%
3.2 Future
HXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.93% yearly.
Based on estimates for the next years, HXL will show a quite strong growth in Revenue. The Revenue will grow by 10.84% on average per year.
EPS Next Y24.64%
EPS Next 2Y29.03%
EPS Next 3Y25.31%
EPS Next 5Y22.93%
Revenue Next Year10.16%
Revenue Next 2Y11.35%
Revenue Next 3Y10.23%
Revenue Next 5Y10.84%
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
With a Price/Earnings ratio of 33.98, HXL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, HXL is valued a bit cheaper than 60.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.05, HXL is valued a bit more expensive.
HXL is valuated quite expensively with a Price/Forward Earnings ratio of 27.26.
HXL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HXL is cheaper than 68.75% of the companies in the same industry.
HXL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 27.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HXL is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HXL is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.32 | ||
| EV/EBITDA | 16.64 |
4.3 Compensation for Growth
HXL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 25.31% in the coming years.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y29.03%
EPS Next 3Y25.31%
5. Dividend
5.1 Amount
HXL has a yearly dividend return of 0.94%, which is pretty low.
HXL's Dividend Yield is a higher than the industry average which is at 1.35.
With a Dividend Yield of 0.94, HXL pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of HXL decreases each year by -2.01%.
HXL has been paying a dividend for at least 10 years, so it has a reliable track record.
HXL has decreased its dividend recently.
Dividend Growth(5Y)-2.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HXL pays out 39.92% of its income as dividend. This is a sustainable payout ratio.
DP39.92%
EPS Next 2Y29.03%
EPS Next 3Y25.31%
HEXCEL CORP
NYSE:HXL (4/15/2024, 7:10:50 PM)
After market: 61.5 0 (0%)61.5
-1.06 (-1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 27.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.08% | ||
| PM (TTM) | 5.91% | ||
| GM | 24.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)41.41%
EPS 3Y93.45%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.39%
Revenue growth 3Y5.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y