HEXCEL CORP (HXL) Stock Fundamental Analysis
USA - NYSE:HXL - US4282911084 - Common Stock
73.82 USD
+1.03 (+1.42%)
73.82 USD
0 (0%)
Taking everything into account, HXL scores 4 out of 10 in our fundamental rating. HXL was compared to 70 industry peers in the Aerospace & Defense industry. HXL has only an average score on both its financial health and profitability. HXL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HXL had positive earnings in the past year.
In the past year HXL had a positive cash flow from operations.
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 (2.49%) which is comparable to the rest of the industry.
The Return On Equity of HXL (4.39%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.95%, HXL is in the better half of the industry, outperforming 62.86% 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 8.41%.
| 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
Looking at the Profit Margin, with a value of 3.67%, HXL is in line with its industry, outperforming 54.29% of the companies in the same industry.
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 68.57% of the companies in the same industry.
HXL's Operating Margin has declined in the last couple of years.
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.
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 5.20. 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 5.20, HXL is in the better half of the industry, outperforming 61.43% of the companies in the same industry.
HXL has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as HXL would need 3.91 years to pay back of 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 80.00% 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 (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 5.2 |
ROIC/WACC0.74
WACC9.43%
2.3 Liquidity
A Current Ratio of 2.75 indicates that HXL has no problem at all paying its short term obligations.
With a Current ratio value of 2.75, HXL perfoms like the industry average, outperforming 58.57% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that HXL should not have too much problems paying its short term obligations.
HXL has a Quick ratio (1.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| 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%.
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.
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)-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
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.
HXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.82% yearly.
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.
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
A Price/Earnings ratio of 41.94 indicates a quite expensive valuation of HXL.
Based on the Price/Earnings ratio, HXL is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.89. HXL is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 28.89, HXL can be considered very expensive at the moment.
HXL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HXL is cheaper than 68.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, HXL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.94 | ||
| Fwd PE | 28.89 |
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.
Based on the Price/Free Cash Flow ratio, HXL is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.29 | ||
| EV/EBITDA | 20.21 |
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
HXL has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 1.11, HXL pays a better dividend. On top of this HXL pays more dividend than 88.57% of the companies listed in the same industry.
With a Dividend Yield of 0.93, HXL pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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
77.18% of the earnings are spent on dividend by HXL. This is not a sustainable payout ratio.
DP77.18%
EPS Next 2Y12.19%
EPS Next 3Y17.18%
73.82
+1.03 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners108.03%
Inst Owner Change0.72%
Ins Owners0.24%
Ins Owner Change0.12%
Market Cap5.87B
Revenue(TTM)1.88B
Net Income(TTM)68.80M
Analysts67.27
Price Target65.89 (-10.74%)
Short Float %5.78%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.6
Dividend Growth(5Y)-1.49%
DP77.18%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-0.38%
PT rev (3m)7.82%
EPS NQ rev (1m)-2.36%
EPS NQ rev (3m)-18.67%
EPS NY rev (1m)-1.47%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-4.09%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.94 | ||
| Fwd PE | 28.89 | ||
| P/S | 3.13 | ||
| P/FCF | 30.29 | ||
| P/OCF | 21.95 | ||
| P/B | 3.75 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 20.21 |
EPS(TTM)1.76
EY2.38%
EPS(NY)2.56
Fwd EY3.46%
FCF(TTM)2.44
FCFY3.3%
OCF(TTM)3.36
OCFY4.56%
SpS23.58
BVpS19.69
TBVpS16.66
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.93
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 | 5.2 |
F-Score6
WACC9.43%
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-7.99%
EPS Next 2Y12.19%
EPS Next 3Y17.18%
EPS Next 5Y18.11%
Revenue 1Y (TTM)-0.55%
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-13.06%
EBIT growth 3Y49.54%
EBIT growth 5Y-11.1%
EBIT Next Year43.46%
EBIT Next 3Y27.17%
EBIT Next 5Y22.64%
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 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 3 / 10 and the dividend payout ratio is 77.18%.