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 only an average score on both its financial health and profitability. HXL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HXL was profitable.
HXL had a positive operating cash flow in the past year.
Each year in the past 5 years HXL has been profitable.
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 4.48%, HXL is in line with its industry, outperforming 58.46% of the companies in the same industry.
The Return On Equity of HXL (8.12%) is comparable to the rest of the industry.
HXL has a better Return On Invested Capital (8.04%) than 67.69% 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 7.91%.
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 69.23% of the companies in the same industry.
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 76.92% of its industry peers.
HXL's Operating Margin has declined in the last couple of years.
HXL has a Gross Margin of 24.06%. This is comparable to the rest of the industry: HXL outperforms 44.62% of 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.
Compared to 1 year ago, HXL has less shares outstanding
Compared to 5 years ago, HXL has less shares outstanding
HXL has a worse debt/assets ratio than last year.
2.2 Solvency
HXL has an Altman-Z score of 4.26. This indicates that HXL is financially healthy and has little risk of bankruptcy at the moment.
HXL has a better Altman-Z score (4.26) than 64.62% of its industry peers.
HXL has a debt to FCF ratio of 4.28. This is a neutral value as HXL would need 4.28 years to pay back of all of its debts.
HXL has a Debt to FCF ratio of 4.28. This is in the better half of the industry: HXL outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that HXL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, HXL is in line with its industry, outperforming 55.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.26 |
ROIC/WACC0.82
WACC9.81%
2.3 Liquidity
A Current Ratio of 2.59 indicates that HXL has no problem at all paying its short term obligations.
HXL's Current ratio of 2.59 is fine compared to the rest of the industry. HXL outperforms 61.54% of its industry peers.
A Quick Ratio of 1.39 indicates that HXL should not have too much problems paying its short term obligations.
HXL has a Quick ratio of 1.39. This is comparable to the rest of the industry: HXL outperforms 47.69% of its industry peers.
| 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.
Measured over the past years, HXL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.53% on average per year.
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
The Earnings Per Share is expected to grow by 15.88% on average over the next years. This is quite good.
Based on estimates for the next years, HXL will show a small growth in Revenue. The Revenue will grow by 6.39% on average per year.
EPS Next Y5.52%
EPS Next 2Y16.77%
EPS Next 3Y18.98%
EPS Next 5Y15.88%
Revenue Next Year2.96%
Revenue Next 2Y6.47%
Revenue Next 3Y6.95%
Revenue Next 5Y6.39%
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 25.86, which means the current valuation is very expensive for HXL.
Compared to the rest of the industry, the Price/Earnings ratio of HXL indicates a somewhat cheap valuation: HXL is cheaper than 70.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.29, HXL is valued at the same level.
The Price/Forward Earnings ratio is 18.31, which indicates a rather expensive current valuation of HXL.
78.46% 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 (20.42), we can say HXL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HXL is valued cheaper than 83.08% of the companies in the same industry.
90.77% 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 | 22.15 | ||
| EV/EBITDA | 13.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HXL's earnings are expected to grow with 18.98% in the coming years.
PEG (NY)4.69
PEG (5Y)N/A
EPS Next 2Y16.77%
EPS Next 3Y18.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.40%, HXL has a reasonable but not impressive dividend return.
The stock price of HXL dropped by -22.68% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HXL's Dividend Yield is rather good when compared to the industry average which is at 1.33. HXL pays more dividend than 87.69% of the companies in the same industry.
With a Dividend Yield of 1.40, HXL pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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 2Y16.77%
EPS Next 3Y18.98%
NYSE:HXL (5/7/2025, 3:56:09 PM)
50.685
+0.19 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners104.62%
Inst Owner Change0.72%
Ins Owners0.74%
Ins Owner Change3.21%
Market Cap4.08B
Analysts65.83
Price Target60.46 (19.29%)
Short Float %3.19%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)-6.38%
Min EPS beat(2)-14.85%
Max EPS beat(2)2.1%
EPS beat(4)3
Avg EPS beat(4)-1.36%
Min EPS beat(4)-14.85%
Max EPS beat(4)5.83%
EPS beat(8)5
Avg EPS beat(8)-3.01%
EPS beat(12)8
Avg EPS beat(12)3.05%
EPS beat(16)12
Avg EPS beat(16)65.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.08%
Min Revenue beat(2)-5.29%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-5.29%
Max Revenue beat(4)2.62%
Revenue beat(8)2
Avg Revenue beat(8)-1.52%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)5
Avg Revenue beat(16)-0.93%
PT rev (1m)-17.34%
PT rev (3m)-18.32%
EPS NQ rev (1m)-9.26%
EPS NQ rev (3m)-10.48%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-3.69%
Revenue NQ rev (1m)-3.51%
Revenue NQ rev (3m)-3.63%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-2.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 18.31 | ||
| P/S | 2.16 | ||
| P/FCF | 22.15 | ||
| P/OCF | 15.18 | ||
| P/B | 2.66 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 13.59 |
EPS(TTM)1.96
EY3.87%
EPS(NY)2.77
Fwd EY5.46%
FCF(TTM)2.29
FCFY4.51%
OCF(TTM)3.34
OCFY6.59%
SpS23.47
BVpS19.06
TBVpS16.07
PEG (NY)4.69
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 | 4.26 |
F-Score7
WACC9.81%
ROIC/WACC0.82
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 Y5.52%
EPS Next 2Y16.77%
EPS Next 3Y18.98%
EPS Next 5Y15.88%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-3.35%
Revenue Next Year2.96%
Revenue Next 2Y6.47%
Revenue Next 3Y6.95%
Revenue Next 5Y6.39%
EBIT growth 1Y9.7%
EBIT growth 3Y49.54%
EBIT growth 5Y-11.1%
EBIT Next Year64.07%
EBIT Next 3Y28.76%
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%