HEXCEL CORP (HXL) Stock Fundamental Analysis
NYSE:HXL - New York Stock Exchange, Inc. - US4282911084 - Common Stock - Currency: USD
Overall HXL gets a fundamental rating of 5 out of 10. We evaluated HXL against 67 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.
HXL had a positive operating cash flow in the past year.
In the past 5 years HXL has always 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 62.69% of its industry peers.
HXL has a better Return On Equity (8.12%) than 61.19% of its industry peers.
HXL's Return On Invested Capital of 8.04% is fine compared to the rest of the industry. HXL outperforms 68.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HXL is in line with the industry average of 8.47%.
The last Return On Invested Capital (8.04%) for HXL is above the 3 year average (7.41%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (6.60%) than 65.67% of its industry peers.
HXL's Profit Margin has declined in the last couple of years.
The Operating Margin of HXL (12.04%) is better than 77.61% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HXL is destroying value.
Compared to 1 year ago, HXL has less shares outstanding
The number of shares outstanding for HXL has been reduced compared to 5 years ago.
HXL has a worse debt/assets ratio than last year.
2.2 Solvency
HXL has an Altman-Z score of 4.65. This indicates that HXL is financially healthy and has little risk of bankruptcy at the moment.
HXL has a Altman-Z score of 4.65. This is comparable to the rest of the industry: HXL outperforms 59.70% 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.
Looking at the Debt to FCF ratio, with a value of 4.28, HXL is in the better half of the industry, outperforming 77.61% 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 | 4.65 |
ROIC/WACC0.78
WACC10.34%
2.3 Liquidity
HXL has a Current Ratio of 2.59. This indicates that HXL is financially healthy and has no problem in meeting its short term obligations.
HXL has a Current ratio (2.59) which is comparable to the rest of the industry.
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 49.25% 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.
HXL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.53% yearly.
HXL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.64%.
HXL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.18% yearly.
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-7.25%
EPS Next 2Y12.66%
EPS Next 3Y16.66%
EPS Next 5Y18.11%
Revenue Next Year0.31%
Revenue Next 2Y5.59%
Revenue Next 3Y6.85%
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
With a Price/Earnings ratio of 30.86, HXL can be considered very expensive at the moment.
HXL's Price/Earnings ratio is a bit cheaper when compared to the industry. HXL is cheaper than 73.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. HXL is around the same levels.
Based on the Price/Forward Earnings ratio of 23.47, the valuation of HXL can be described as rather expensive.
71.64% of the companies in the same industry are more expensive than HXL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HXL to the average of the S&P500 Index (36.44), we can say HXL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.86 | ||
| Fwd PE | 23.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HXL is valued cheaply inside the industry as 82.09% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HXL is valued cheaper than 89.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.43 | ||
| EV/EBITDA | 15.88 |
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 16.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.66%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
HXL has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.16, HXL pays a better dividend. On top of this HXL pays more dividend than 86.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, HXL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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
40.56% of the earnings are spent on dividend by HXL. This is a bit on the high side, but may be sustainable.
DP40.56%
EPS Next 2Y12.66%
EPS Next 3Y16.66%
60.48
-0.23 (-0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners102.86%
Inst Owner Change-0.16%
Ins Owners0.24%
Ins Owner Change-0.56%
Market Cap4.86B
Analysts66.09
Price Target61.11 (1.04%)
Short Float %5.86%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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)4.45%
PT rev (3m)-15.57%
EPS NQ rev (1m)-2.74%
EPS NQ rev (3m)-15.1%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-12.1%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.86 | ||
| Fwd PE | 23.47 | ||
| P/S | 2.58 | ||
| P/FCF | 26.43 | ||
| P/OCF | 18.12 | ||
| P/B | 3.17 | ||
| P/tB | 3.76 | ||
| EV/EBITDA | 15.88 |
EPS(TTM)1.96
EY3.24%
EPS(NY)2.58
Fwd EY4.26%
FCF(TTM)2.29
FCFY3.78%
OCF(TTM)3.34
OCFY5.52%
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 | 4.65 |
F-Score7
WACC10.34%
ROIC/WACC0.78
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-7.25%
EPS Next 2Y12.66%
EPS Next 3Y16.66%
EPS Next 5Y18.11%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-3.35%
Revenue Next Year0.31%
Revenue Next 2Y5.59%
Revenue Next 3Y6.85%
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%