HEXCEL CORP (HXL) Stock Fundamental Analysis
NYSE:HXL - New York Stock Exchange, Inc. - US4282911084 - Common Stock
We assign a fundamental rating of 5 out of 10 to HXL. HXL was compared to 65 industry peers in the Aerospace & Defense industry. While HXL has a great health rating, its profitability is only average at the moment. HXL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HXL was profitable.
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 3.78%, HXL is in line with its industry, outperforming 53.13% of the companies in the same industry.
HXL has a Return On Equity (6.80%) which is comparable to the rest of the industry.
HXL's Return On Invested Capital of 7.43% is fine compared to the rest of the industry. HXL outperforms 71.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HXL is below the industry average of 7.66%.
The last Return On Invested Capital (7.43%) for HXL is above the 3 year average (5.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 6.8% | ||
| ROIC | 7.43% |
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
With a Profit Margin value of 5.73%, HXL perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
HXL's Profit Margin has declined in the last couple of years.
HXL's Operating Margin of 12.02% is fine compared to the rest of the industry. HXL outperforms 79.69% of its industry peers.
In the last couple of years the Operating Margin of HXL has declined.
HXL's Gross Margin of 24.08% is in line compared to the rest of the industry. HXL outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of HXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.02% | ||
| PM (TTM) | 5.73% | ||
| GM | 24.08% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HXL is destroying value.
HXL has about the same amout of shares outstanding than it did 1 year ago.
HXL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HXL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.86 indicates that HXL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.86, HXL is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of HXL is 3.95, which is a good value as it means it would take HXL, 3.95 years of fcf income to pay off all of its debts.
HXL has a Debt to FCF ratio of 3.95. This is in the better half of the industry: HXL outperforms 78.13% of its industry peers.
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 | 3.95 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.74
WACC10.04%
2.3 Liquidity
HXL has a Current Ratio of 2.76. This indicates that HXL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HXL (2.76) is better than 64.06% of its industry peers.
HXL has a Quick Ratio of 1.51. This is a normal value and indicates that HXL is financially healthy and should not expect problems in meeting its short term obligations.
HXL has a Quick ratio of 1.51. This is in the better half of the industry: HXL outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.99% over the past year.
Measured over the past years, HXL shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.91% on average per year.
Looking at the last year, HXL shows a small growth in Revenue. The Revenue has grown by 7.14% in the last year.
The Revenue has been decreasing by -3.96% on average over the past years.
EPS 1Y (TTM)8.99%
EPS 3Y93.45%
EPS 5Y-9.91%
EPS Q2Q%23.68%
Revenue 1Y (TTM)7.14%
Revenue growth 3Y5.99%
Revenue growth 5Y-3.96%
Sales Q2Q%8.82%
3.2 Future
The Earnings Per Share is expected to grow by 17.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.70% on average over the next years.
EPS Next Y12.77%
EPS Next 2Y16.35%
EPS Next 3Y19.76%
EPS Next 5Y17.94%
Revenue Next Year5.99%
Revenue Next 2Y6.21%
Revenue Next 3Y7.39%
Revenue Next 5Y7.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 34.86, HXL can be considered very expensive at the moment.
70.31% of the companies in the same industry are more expensive than HXL, based on the Price/Earnings ratio.
HXL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 27.60 indicates a quite expensive valuation of HXL.
68.75% of the companies in the same industry are more expensive than HXL, based on the Price/Forward Earnings ratio.
HXL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.86 | ||
| Fwd PE | 27.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HXL is valued a bit cheaper than 70.31% of the companies in the same industry.
92.19% 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 | 26.84 | ||
| EV/EBITDA | 17.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HXL does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as HXL's earnings are expected to grow with 19.76% in the coming years.
PEG (NY)2.73
PEG (5Y)N/A
EPS Next 2Y16.35%
EPS Next 3Y19.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, HXL is not a good candidate for dividend investing.
HXL's Dividend Yield is rather good when compared to the industry average which is at 1.36. HXL pays more dividend than 84.38% of the companies in the same industry.
With a Dividend Yield of 0.90, HXL pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of HXL decreases each year by -2.01%.
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)-2.01%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
44.13% of the earnings are spent on dividend by HXL. This is a bit on the high side, but may be sustainable.
DP44.13%
EPS Next 2Y16.35%
EPS Next 3Y19.76%
HEXCEL CORP
NYSE:HXL (1/22/2025, 10:41:56 AM)
67.625
-0.83 (-1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.29%
Inst Owner Change0.3%
Ins Owners0.66%
Ins Owner Change3.58%
Market Cap5.48B
Analysts68
Price Target72.11 (6.63%)
Short Float %3.78%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.5
Dividend Growth(5Y)-2.01%
DP44.13%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.67%
Min EPS beat(2)1.51%
Max EPS beat(2)5.83%
EPS beat(4)3
Avg EPS beat(4)-0.26%
Min EPS beat(4)-13.64%
Max EPS beat(4)5.83%
EPS beat(8)6
Avg EPS beat(8)5.07%
EPS beat(12)9
Avg EPS beat(12)8.91%
EPS beat(16)13
Avg EPS beat(16)68.98%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)2.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-4.01%
Max Revenue beat(4)2.62%
Revenue beat(8)4
Avg Revenue beat(8)0.6%
Revenue beat(12)5
Avg Revenue beat(12)-0.12%
Revenue beat(16)6
Avg Revenue beat(16)-0.55%
PT rev (1m)1.25%
PT rev (3m)-2.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.85%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.86 | ||
| Fwd PE | 27.6 | ||
| P/S | 2.9 | ||
| P/FCF | 26.84 | ||
| P/OCF | 19.13 | ||
| P/B | 3.45 | ||
| P/tB | 4.08 | ||
| EV/EBITDA | 17.8 |
EPS(TTM)1.94
EY2.87%
EPS(NY)2.45
Fwd EY3.62%
FCF(TTM)2.52
FCFY3.73%
OCF(TTM)3.53
OCFY5.23%
SpS23.29
BVpS19.62
TBVpS16.57
PEG (NY)2.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 6.8% | ||
| ROCE | 8.85% | ||
| ROIC | 7.43% | ||
| ROICexc | 7.72% | ||
| ROICexgc | 8.59% | ||
| OM | 12.02% | ||
| PM (TTM) | 5.73% | ||
| GM | 24.08% | ||
| FCFM | 10.82% |
ROA(3y)2.88%
ROA(5y)3.91%
ROE(3y)5.12%
ROE(5y)7.73%
ROIC(3y)5.12%
ROIC(5y)6.06%
ROICexc(3y)5.48%
ROICexc(5y)6.35%
ROICexgc(3y)6.13%
ROICexgc(5y)7.09%
ROCE(3y)6.1%
ROCE(5y)7.22%
ROICexcg growth 3Y49.08%
ROICexcg growth 5Y-8.71%
ROICexc growth 3Y49.06%
ROICexc growth 5Y-9.66%
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%
F-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.95 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 65.97% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.5% | ||
| Profit Quality | 188.81% | ||
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 4.86 |
F-Score5
WACC10.04%
ROIC/WACC0.74
Cap/Depr(3y)55.79%
Cap/Depr(5y)69.46%
Cap/Sales(3y)4.33%
Cap/Sales(5y)5%
Profit Quality(3y)328.82%
Profit Quality(5y)350.84%
High Growth Momentum
Growth
EPS 1Y (TTM)8.99%
EPS 3Y93.45%
EPS 5Y-9.91%
EPS Q2Q%23.68%
EPS Next Y12.77%
EPS Next 2Y16.35%
EPS Next 3Y19.76%
EPS Next 5Y17.94%
Revenue 1Y (TTM)7.14%
Revenue growth 3Y5.99%
Revenue growth 5Y-3.96%
Sales Q2Q%8.82%
Revenue Next Year5.99%
Revenue Next 2Y6.21%
Revenue Next 3Y7.39%
Revenue Next 5Y7.7%
EBIT growth 1Y5.44%
EBIT growth 3Y44.07%
EBIT growth 5Y-10.32%
EBIT Next Year60.75%
EBIT Next 3Y27%
EBIT Next 5Y22.54%
FCF growth 1Y180.74%
FCF growth 3Y-11.35%
FCF growth 5Y-8.9%
OCF growth 1Y98.96%
OCF growth 3Y-0.92%
OCF growth 5Y-9.41%