HEXCEL CORP (HXL) Stock Fundamental Analysis
USA - NYSE:HXL - US4282911084 - Common Stock
72.79 USD
+1.84 (+2.59%)
72.79 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HXL. HXL was compared to 70 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of HXL get a neutral evaluation. Nothing too spectacular is happening here. HXL has a valuation in line with the averages, but it does not seem to be growing.
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 has a Return On Assets (3.09%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 5.66%, HXL is in line with its industry, outperforming 55.71% of the companies in the same industry.
The Return On Invested Capital of HXL (7.22%) is better than 67.14% of its industry peers.
HXL had an Average Return On Invested Capital over the past 3 years of 7.41%. This is in line with the industry average of 8.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 5.66% | ||
| ROIC | 7.22% |
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 Profit Margin of 4.69%. This is comparable to the rest of the industry: HXL outperforms 55.71% of its industry peers.
In the last couple of years the Profit Margin of HXL has declined.
With a decent Operating Margin value of 11.16%, HXL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
HXL's Operating Margin has declined in the last couple of years.
HXL has a Gross Margin of 23.39%. This is comparable to the rest of the industry: HXL outperforms 45.71% of its industry peers.
In the last couple of years the Gross Margin of HXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.16% | ||
| PM (TTM) | 4.69% | ||
| GM | 23.39% |
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.
Compared to 1 year ago, HXL has less shares outstanding
HXL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HXL has a worse debt to assets ratio.
2.2 Solvency
HXL has an Altman-Z score of 4.87. This indicates that HXL is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 4.87, HXL perfoms like the industry average, outperforming 58.57% of the companies in the same industry.
HXL has a debt to FCF ratio of 4.86. This is a neutral value as HXL would need 4.86 years to pay back of all of its debts.
HXL has a better Debt to FCF ratio (4.86) than 72.86% of its industry peers.
HXL has a Debt/Equity ratio of 0.53. This is a neutral value indicating HXL is somewhat dependend on debt financing.
HXL has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: HXL outperforms 51.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 4.87 |
ROIC/WACC0.77
WACC9.37%
2.3 Liquidity
HXL has a Current Ratio of 2.69. This indicates that HXL is financially healthy and has no problem in meeting its short term obligations.
HXL has a Current ratio of 2.69. This is comparable to the rest of the industry: HXL outperforms 57.14% of its industry peers.
A Quick Ratio of 1.50 indicates that HXL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, HXL is in line with its industry, outperforming 54.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
HXL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.28%.
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 6.37% in the past year.
HXL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.18% yearly.
EPS 1Y (TTM)-9.28%
EPS 3Y95.9%
EPS 5Y-10.53%
EPS Q2Q%-21.28%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-0.07%
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.
Based on estimates for the next years, HXL will show a small growth in Revenue. The Revenue will grow by 7.82% on average per year.
EPS Next Y-7.99%
EPS Next 2Y12.19%
EPS Next 3Y17.18%
EPS Next 5Y18.11%
Revenue Next Year0.1%
Revenue Next 2Y5.59%
Revenue Next 3Y6.85%
Revenue Next 5Y7.82%
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
HXL is valuated quite expensively with a Price/Earnings ratio of 41.36.
65.71% of the companies in the same industry are more expensive than HXL, based on the Price/Earnings ratio.
HXL is valuated expensively when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.49, the valuation of HXL can be described as expensive.
Based on the Price/Forward Earnings ratio, HXL is valued a bit cheaper than 68.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HXL to the average of the S&P500 Index (22.82), we can say HXL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.36 | ||
| Fwd PE | 28.49 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than HXL, based on the Enterprise Value to EBITDA ratio.
HXL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HXL is cheaper than 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.93 | ||
| EV/EBITDA | 19.26 |
4.3 Compensation for Growth
HXL's earnings are expected to grow with 17.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.19%
EPS Next 3Y17.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, 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 1.15. HXL pays more dividend than 88.57% of the companies in the same industry.
With a Dividend Yield of 1.07, HXL pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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.
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
58.86% of the earnings are spent on dividend by HXL. This is a bit on the high side, but may be sustainable.
DP58.86%
EPS Next 2Y12.19%
EPS Next 3Y17.18%
72.79
+1.84 (+2.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners108.03%
Inst Owner Change-0.18%
Ins Owners0.24%
Ins Owner Change0.12%
Market Cap5.79B
Revenue(TTM)1.90B
Net Income(TTM)88.00M
Analysts67.27
Price Target65.89 (-9.48%)
Short Float %5.8%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.6
Dividend Growth(5Y)-1.49%
DP58.86%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.94%
Min EPS beat(2)-14.27%
Max EPS beat(2)6.38%
EPS beat(4)3
Avg EPS beat(4)-1.07%
Min EPS beat(4)-14.27%
Max EPS beat(4)6.38%
EPS beat(8)5
Avg EPS beat(8)-2.44%
EPS beat(12)8
Avg EPS beat(12)2.77%
EPS beat(16)12
Avg EPS beat(16)10.13%
Revenue beat(2)1
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)1.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)1.98%
Revenue beat(8)2
Avg Revenue beat(8)-1.27%
Revenue beat(12)5
Avg Revenue beat(12)-0.7%
Revenue beat(16)6
Avg Revenue beat(16)-0.66%
PT rev (1m)-0.38%
PT rev (3m)7.82%
EPS NQ rev (1m)-1.83%
EPS NQ rev (3m)-18.32%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-4.27%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.36 | ||
| Fwd PE | 28.49 | ||
| P/S | 3.09 | ||
| P/FCF | 33.93 | ||
| P/OCF | 23.4 | ||
| P/B | 3.73 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 19.26 |
EPS(TTM)1.76
EY2.42%
EPS(NY)2.56
Fwd EY3.51%
FCF(TTM)2.15
FCFY2.95%
OCF(TTM)3.11
OCFY4.27%
SpS23.59
BVpS19.53
TBVpS16.47
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 5.66% | ||
| ROCE | 8.29% | ||
| ROIC | 7.22% | ||
| ROICexc | 7.45% | ||
| ROICexgc | 8.27% | ||
| OM | 11.16% | ||
| PM (TTM) | 4.69% | ||
| GM | 23.39% | ||
| FCFM | 9.1% |
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%
ROICexgc growth 3Y53.57%
ROICexgc 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-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 62.64% | ||
| Cap/Sales | 4.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.53% | ||
| Profit Quality | 193.98% | ||
| Current Ratio | 2.69 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 4.87 |
F-Score5
WACC9.37%
ROIC/WACC0.77
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)-9.28%
EPS 3Y95.9%
EPS 5Y-10.53%
EPS Q2Q%-21.28%
EPS Next Y-7.99%
EPS Next 2Y12.19%
EPS Next 3Y17.18%
EPS Next 5Y18.11%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-0.07%
Revenue Next Year0.1%
Revenue Next 2Y5.59%
Revenue Next 3Y6.85%
Revenue Next 5Y7.82%
EBIT growth 1Y-3.63%
EBIT growth 3Y49.54%
EBIT growth 5Y-11.1%
EBIT Next Year43.46%
EBIT Next 3Y27.17%
EBIT Next 5Y22.64%
FCF growth 1Y138.07%
FCF growth 3Y17.9%
FCF growth 5Y-6.7%
OCF growth 1Y33.86%
OCF growth 3Y24.1%
OCF growth 5Y-10.01%
HEXCEL CORP / HXL FAQ
What is the ChartMill fundamental rating of HEXCEL CORP (HXL) stock?
ChartMill assigns a fundamental rating of 4 / 10 to HXL.
What is the valuation status for HXL stock?
ChartMill assigns a valuation rating of 4 / 10 to HEXCEL CORP (HXL). This can be considered as Fairly Valued.
What is the profitability of HXL stock?
HEXCEL CORP (HXL) has a profitability rating of 4 / 10.
What is the expected EPS growth for HEXCEL CORP (HXL) stock?
The Earnings per Share (EPS) of HEXCEL CORP (HXL) is expected to decline by -7.99% in the next year.
Is the dividend of HEXCEL CORP sustainable?
The dividend rating of HEXCEL CORP (HXL) is 4 / 10 and the dividend payout ratio is 58.86%.