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 66 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 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.
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 Return On Assets value of 4.85%, HXL perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
HXL has a better Return On Equity (8.65%) than 64.06% of its industry peers.
HXL's Return On Invested Capital of 8.67% is fine compared to the rest of the industry. HXL outperforms 73.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HXL is in line with the industry average of 7.98%.
The last Return On Invested Capital (8.67%) for HXL is above the 3 year average (7.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 8.65% | ||
| ROIC | 8.67% |
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 better Profit Margin (6.94%) than 64.06% of its industry peers.
In the last couple of years the Profit Margin of HXL has declined.
Looking at the Operating Margin, with a value of 12.41%, HXL is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
In the last couple of years the Operating Margin of HXL has declined.
HXL's Gross Margin of 24.69% is in line compared to the rest of the industry. HXL outperforms 51.56% of its industry peers.
HXL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.41% | ||
| PM (TTM) | 6.94% | ||
| GM | 24.69% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HXL is destroying value.
The number of shares outstanding for HXL has been reduced compared to 1 year ago.
Compared to 5 years ago, HXL has less shares outstanding
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 decent Altman-Z score value of 4.87, HXL is doing good in the industry, outperforming 70.31% of the companies in the same industry.
HXL has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as HXL would need 3.45 years to pay back of all of its debts.
HXL's Debt to FCF ratio of 3.45 is fine compared to the rest of the industry. HXL outperforms 79.69% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that HXL is not too dependend on debt financing.
HXL has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: HXL outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 4.87 |
ROIC/WACC0.95
WACC9.15%
2.3 Liquidity
HXL has a Current Ratio of 2.21. This indicates that HXL is financially healthy and has no problem in meeting its short term obligations.
HXL has a Current ratio (2.21) which is in line with its industry peers.
HXL has a Quick Ratio of 1.20. 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 (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.15% 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.
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)12.15%
EPS 3Y95.9%
EPS 5Y-10.53%
EPS Q2Q%20.93%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%3.56%
3.2 Future
The Earnings Per Share is expected to grow by 15.88% on average over the next years. This is quite good.
Based on estimates for the next years, HXL will show a small growth in Revenue. The Revenue will grow by 6.39% on average per year.
EPS Next Y7.76%
EPS Next 2Y18.21%
EPS Next 3Y18.61%
EPS Next 5Y15.88%
Revenue Next Year5.25%
Revenue Next 2Y7.39%
Revenue Next 3Y6.97%
Revenue Next 5Y6.39%
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
A Price/Earnings ratio of 30.85 indicates a quite expensive valuation of HXL.
Based on the Price/Earnings ratio, HXL is valued a bit cheaper than 67.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, HXL is valued at the same level.
With a Price/Forward Earnings ratio of 28.62, HXL can be considered very expensive at the moment.
64.06% of the companies in the same industry are more expensive than HXL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. HXL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 28.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HXL is valued a bit cheaper than 71.88% of the companies in the same industry.
HXL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HXL is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.04 | ||
| EV/EBITDA | 15.71 |
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.
HXL has a very decent profitability rating, which may justify a higher PE ratio.
HXL's earnings are expected to grow with 18.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.97
PEG (5Y)N/A
EPS Next 2Y18.21%
EPS Next 3Y18.61%
5. Dividend
5.1 Amount
HXL has a Yearly Dividend Yield of 1.06%.
Compared to an average industry Dividend Yield of 1.44, HXL pays a better dividend. On top of this HXL pays more dividend than 84.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, HXL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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
37.32% of the earnings are spent on dividend by HXL. This is a low number and sustainable payout ratio.
DP37.32%
EPS Next 2Y18.21%
EPS Next 3Y18.61%
62.62
-1.46 (-2.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners104.62%
Inst Owner Change-84.93%
Ins Owners0.74%
Ins Owner Change2.74%
Market Cap5.08B
Analysts66.67
Price Target74.02 (18.21%)
Short Float %3.74%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend0.6
Dividend Growth(5Y)-1.49%
DP37.32%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.8%
Min EPS beat(2)1.51%
Max EPS beat(2)2.1%
EPS beat(4)4
Avg EPS beat(4)3.67%
Min EPS beat(4)1.51%
Max EPS beat(4)5.83%
EPS beat(8)6
Avg EPS beat(8)2.5%
EPS beat(12)9
Avg EPS beat(12)6.81%
EPS beat(16)13
Avg EPS beat(16)68.56%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)-0.8%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)2.62%
Revenue beat(8)3
Avg Revenue beat(8)-0.18%
Revenue beat(12)5
Avg Revenue beat(12)-0.14%
Revenue beat(16)6
Avg Revenue beat(16)-0.48%
PT rev (1m)2.65%
PT rev (3m)2.71%
EPS NQ rev (1m)-14.56%
EPS NQ rev (3m)-28.14%
EPS NY rev (1m)-10.73%
EPS NY rev (3m)-13.67%
Revenue NQ rev (1m)-3.43%
Revenue NQ rev (3m)-9.09%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-3.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 28.62 | ||
| P/S | 2.67 | ||
| P/FCF | 25.04 | ||
| P/OCF | 17.52 | ||
| P/B | 3.33 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 15.71 |
EPS(TTM)2.03
EY3.24%
EPS(NY)2.19
Fwd EY3.49%
FCF(TTM)2.5
FCFY3.99%
OCF(TTM)3.57
OCFY5.71%
SpS23.46
BVpS18.83
TBVpS15.91
PEG (NY)3.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 8.65% | ||
| ROCE | 9.95% | ||
| ROIC | 8.67% | ||
| ROICexc | 9.16% | ||
| ROICexgc | 10.24% | ||
| OM | 12.41% | ||
| PM (TTM) | 6.94% | ||
| GM | 24.69% | ||
| FCFM | 10.66% |
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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 70.16% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 7.05 | ||
| Cash Conversion | 80.51% | ||
| Profit Quality | 153.6% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.87 |
F-Score7
WACC9.15%
ROIC/WACC0.95
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)12.15%
EPS 3Y95.9%
EPS 5Y-10.53%
EPS Q2Q%20.93%
EPS Next Y7.76%
EPS Next 2Y18.21%
EPS Next 3Y18.61%
EPS Next 5Y15.88%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%3.56%
Revenue Next Year5.25%
Revenue Next 2Y7.39%
Revenue Next 3Y6.97%
Revenue Next 5Y6.39%
EBIT growth 1Y9.25%
EBIT growth 3Y49.54%
EBIT growth 5Y-11.1%
EBIT Next Year65.7%
EBIT Next 3Y27.95%
EBIT Next 5Y20.42%
FCF growth 1Y36.27%
FCF growth 3Y17.9%
FCF growth 5Y-6.7%
OCF growth 1Y12.76%
OCF growth 3Y24.1%
OCF growth 5Y-10.01%