HEXCEL CORP (HXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HXL - US4282911084 - Common Stock
82.13 USD
+1.38 (+1.71%)
82.13 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HXL. HXL was compared to 71 industry peers in the Aerospace & Defense industry. HXL has only an average score on both its financial health and profitability. HXL has a decent growth rate and is not valued too expensively.
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.
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
HXL has a Return On Assets of 2.49%. This is comparable to the rest of the industry: HXL outperforms 50.70% of its industry peers.
HXL has a Return On Equity (4.39%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 6.95%, HXL is doing good in the industry, outperforming 61.97% of the companies in the same industry.
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 8.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 4.39% | ||
| ROIC | 6.95% |
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 3.67%. This is comparable to the rest of the industry: HXL outperforms 54.93% of its industry peers.
HXL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.50%, HXL is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
In the last couple of years the Operating Margin of HXL has declined.
HXL has a Gross Margin (23.04%) which is comparable to the rest of the industry.
HXL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.5% | ||
| PM (TTM) | 3.67% | ||
| GM | 23.04% |
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.
HXL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HXL has been reduced compared to 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 5.58. This indicates that HXL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.58, HXL is in the better half of the industry, outperforming 60.56% of the companies in the same industry.
The Debt to FCF ratio of HXL is 3.91, which is a good value as it means it would take HXL, 3.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.91, HXL is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
HXL has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
HXL has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: HXL outperforms 50.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 5.58 |
ROIC/WACC0.74
WACC9.4%
2.3 Liquidity
HXL has a Current Ratio of 2.75. This indicates that HXL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HXL (2.75) is comparable to the rest of the industry.
A Quick Ratio of 1.50 indicates that HXL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.50, HXL perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for HXL have decreased by -9.28% in the last year.
HXL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.53% yearly.
Looking at the last year, HXL shows a decrease in Revenue. The Revenue has decreased by -0.55% in the last year.
The Revenue has been decreasing by -4.18% on average over the past years.
EPS 1Y (TTM)-9.28%
EPS 3Y95.9%
EPS 5Y-10.53%
EPS Q2Q%-21.28%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-0.07%
3.2 Future
Based on estimates for the next years, HXL will show a very strong growth in Earnings Per Share. The EPS will grow by 23.31% on average per year.
HXL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.35% yearly.
EPS Next Y-13.34%
EPS Next 2Y8.16%
EPS Next 3Y18.84%
EPS Next 5Y23.31%
Revenue Next Year-0.94%
Revenue Next 2Y4.5%
Revenue Next 3Y7.09%
Revenue Next 5Y8.35%
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
The Price/Earnings ratio is 46.66, which means the current valuation is very expensive for HXL.
Based on the Price/Earnings ratio, HXL is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.25. HXL is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 34.58 indicates a quite expensive valuation of HXL.
HXL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HXL is cheaper than 66.20% of the companies in the same industry.
HXL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.66 | ||
| Fwd PE | 34.58 |
4.2 Price Multiples
69.01% 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 87.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.72 | ||
| EV/EBITDA | 22.55 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HXL's earnings are expected to grow with 18.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.16%
EPS Next 3Y18.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, HXL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.37, HXL pays a better dividend. On top of this HXL pays more dividend than 85.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, HXL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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
77.18% of the earnings are spent on dividend by HXL. This is not a sustainable payout ratio.
DP77.18%
EPS Next 2Y8.16%
EPS Next 3Y18.84%
82.13
+1.38 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners114.17%
Inst Owner Change0.02%
Ins Owners0.19%
Ins Owner Change1.43%
Market Cap6.54B
Revenue(TTM)1.88B
Net Income(TTM)68.80M
Analysts67.62
Price Target76.57 (-6.77%)
Short Float %7.82%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.6
Dividend Growth(5Y)-1.49%
DP77.18%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.78%
Min EPS beat(2)-0.81%
Max EPS beat(2)6.38%
EPS beat(4)2
Avg EPS beat(4)-1.65%
Min EPS beat(4)-14.27%
Max EPS beat(4)6.38%
EPS beat(8)5
Avg EPS beat(8)-0.96%
EPS beat(12)8
Avg EPS beat(12)2.83%
EPS beat(16)11
Avg EPS beat(16)6.27%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)1.86%
Max Revenue beat(2)1.98%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)1.98%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)6
Avg Revenue beat(12)0.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.22%
PT rev (1m)0.41%
PT rev (3m)16.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.2%
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)-5.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.66 | ||
| Fwd PE | 34.58 | ||
| P/S | 3.48 | ||
| P/FCF | 33.72 | ||
| P/OCF | 24.43 | ||
| P/B | 4.17 | ||
| P/tB | 4.93 | ||
| EV/EBITDA | 22.55 |
EPS(TTM)1.76
EY2.14%
EPS(NY)2.37
Fwd EY2.89%
FCF(TTM)2.44
FCFY2.97%
OCF(TTM)3.36
OCFY4.09%
SpS23.57
BVpS19.68
TBVpS16.65
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 4.39% | ||
| ROCE | 7.97% | ||
| ROIC | 6.95% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 8.02% | ||
| OM | 10.5% | ||
| PM (TTM) | 3.67% | ||
| GM | 23.04% | ||
| FCFM | 10.33% |
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-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 60.16% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.73% | ||
| Profit Quality | 281.83% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 5.58 |
F-Score6
WACC9.4%
ROIC/WACC0.74
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-13.34%
EPS Next 2Y8.16%
EPS Next 3Y18.84%
EPS Next 5Y23.31%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-0.07%
Revenue Next Year-0.94%
Revenue Next 2Y4.5%
Revenue Next 3Y7.09%
Revenue Next 5Y8.35%
EBIT growth 1Y-13.06%
EBIT growth 3Y49.54%
EBIT growth 5Y-11.1%
EBIT Next Year35.06%
EBIT Next 3Y27.86%
EBIT Next 5Y23.41%
FCF growth 1Y89.36%
FCF growth 3Y17.9%
FCF growth 5Y-6.7%
OCF growth 1Y24.58%
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 5 / 10 to HXL.
Can you provide the valuation status for HEXCEL CORP?
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.
Can you provide the PE and PB ratios for HXL stock?
The Price/Earnings (PE) ratio for HEXCEL CORP (HXL) is 46.66 and the Price/Book (PB) ratio is 4.17.
What is the financial health of HEXCEL CORP (HXL) stock?
The financial health rating of HEXCEL CORP (HXL) is 6 / 10.