HEXCEL CORP (HXL) Stock Fundamental Analysis
NYSE:HXL - New York Stock Exchange, Inc. - US4282911084 - Common Stock - Currency: USD
HXL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. HXL has an average financial health and profitability rating. HXL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HXL was profitable.
In the past year HXL had a positive cash flow from operations.
In the past 5 years HXL has always been profitable.
HXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.48%, HXL is doing good in the industry, outperforming 63.08% of the companies in the same industry.
HXL's Return On Equity of 8.12% is fine compared to the rest of the industry. HXL outperforms 61.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.04%, HXL is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HXL is in line with the industry average of 8.44%.
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
Looking at the Profit Margin, with a value of 6.60%, HXL is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
In the last couple of years the Profit Margin of HXL has declined.
HXL has a better Operating Margin (12.04%) than 76.92% of its industry peers.
In the last couple of years the Operating Margin of HXL has declined.
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
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
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 4.51. This indicates that HXL is financially healthy and has little risk of bankruptcy at the moment.
HXL has a Altman-Z score of 4.51. This is comparable to the rest of the industry: HXL outperforms 60.00% 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 76.92% of the companies in the same industry.
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 52.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.28 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.81
WACC9.99%
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.
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 49.23% 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.
HXL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.64%.
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.
The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y-6.7%
EPS Next 2Y12.91%
EPS Next 3Y16.72%
EPS Next 5Y18.11%
Revenue Next Year0.26%
Revenue Next 2Y5.56%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.82, the valuation of HXL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HXL indicates a somewhat cheap valuation: HXL is cheaper than 73.85% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HXL to the average of the S&P500 Index (27.15), we can say HXL is valued inline with the index average.
HXL is valuated rather expensively with a Price/Forward Earnings ratio of 21.83.
Based on the Price/Forward Earnings ratio, HXL is valued a bit cheaper than 72.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HXL to the average of the S&P500 Index (21.60), we can say HXL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.82 | ||
| Fwd PE | 21.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HXL is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
89.23% 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 | 24.69 | ||
| EV/EBITDA | 15.06 |
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 16.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.91%
EPS Next 3Y16.72%
5. Dividend
5.1 Amount
HXL has a Yearly Dividend Yield of 1.20%.
HXL's Dividend Yield is rather good when compared to the industry average which is at 1.27. HXL pays more dividend than 87.69% of the companies in the same industry.
With a Dividend Yield of 1.20, HXL pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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.
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
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 2Y12.91%
EPS Next 3Y16.72%
56.49
-0.41 (-0.72%)
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 Cap4.54B
Analysts65.83
Price Target60.2 (6.57%)
Short Float %4.31%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)2.31%
PT rev (3m)-17.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.9%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-13.1%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-5.48%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.82 | ||
| Fwd PE | 21.83 | ||
| P/S | 2.41 | ||
| P/FCF | 24.69 | ||
| P/OCF | 16.92 | ||
| P/B | 2.96 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 15.06 |
EPS(TTM)1.96
EY3.47%
EPS(NY)2.59
Fwd EY4.58%
FCF(TTM)2.29
FCFY4.05%
OCF(TTM)3.34
OCFY5.91%
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 | 4.51 |
F-Score7
WACC9.99%
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-6.7%
EPS Next 2Y12.91%
EPS Next 3Y16.72%
EPS Next 5Y18.11%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-3.35%
Revenue Next Year0.26%
Revenue Next 2Y5.56%
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%