HEXCEL CORP (HXL) Stock Fundamental Analysis
NYSE:HXL - New York Stock Exchange, Inc. - US4282911084 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to HXL. HXL was compared to 65 industry peers in the Aerospace & Defense industry. HXL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HXL is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years HXL had a positive operating cash flow.
1.2 Ratios
HXL's Return On Assets of 4.85% is in line compared to the rest of the industry. HXL outperforms 60.00% of its industry peers.
With a decent Return On Equity value of 8.65%, HXL is doing good in the industry, outperforming 64.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.67%, HXL is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HXL is in line with the industry average of 7.87%.
The 3 year average ROIC (7.41%) for HXL is below the current ROIC(8.67%), indicating increased profibility in the last year.
| 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 69.23% of its industry peers.
HXL's Profit Margin has declined in the last couple of years.
HXL has a Operating Margin of 12.41%. This is in the better half of the industry: HXL outperforms 78.46% of its industry peers.
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 49.23% of its industry peers.
In the last couple of years the Gross Margin of HXL has declined.
| 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
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.
Compared to 1 year ago, HXL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.36 indicates that HXL is not in any danger for bankruptcy at the moment.
HXL has a better Altman-Z score (4.36) than 66.15% of its industry peers.
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 has a Debt to FCF ratio of 3.45. This is amongst the best in the industry. HXL outperforms 84.62% of its industry peers.
HXL has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
HXL has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: HXL outperforms 55.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 4.36 |
ROIC/WACC0.89
WACC9.72%
2.3 Liquidity
A Current Ratio of 2.21 indicates that HXL has no problem at all paying 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.
The Quick ratio of HXL (1.20) 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 12.00% 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.
The Revenue has been growing slightly by 6.37% in the past 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)12%
EPS 3Y95.9%
EPS 5Y-10.53%
EPS Q2Q%-15.91%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-3.35%
3.2 Future
Based on estimates for the next years, HXL will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.88% on average per year.
HXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y5.52%
EPS Next 2Y16.77%
EPS Next 3Y18.98%
EPS Next 5Y15.88%
Revenue Next Year4.63%
Revenue Next 2Y7.39%
Revenue Next 3Y7.51%
Revenue Next 5Y6.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 24.65, the valuation of HXL can be described as rather expensive.
Based on the Price/Earnings ratio, HXL is valued a bit cheaper than the industry average as 73.85% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HXL to the average of the S&P500 Index (28.33), we can say HXL is valued inline with the index average.
HXL is valuated rather expensively with a Price/Forward Earnings ratio of 17.45.
81.54% of the companies in the same industry are more expensive than HXL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HXL to the average of the S&P500 Index (21.37), we can say HXL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HXL indicates a rather cheap valuation: HXL is cheaper than 84.62% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HXL indicates a rather cheap valuation: HXL is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 12.87 |
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.
The decent profitability rating of HXL may justify a higher PE ratio.
HXL's earnings are expected to grow with 18.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.47
PEG (5Y)N/A
EPS Next 2Y16.77%
EPS Next 3Y18.98%
5. Dividend
5.1 Amount
HXL has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of HXL has falen by -28.54%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.36, HXL pays a better dividend. On top of this HXL pays more dividend than 87.69% of the companies listed in the same industry.
With a Dividend Yield of 1.31, HXL pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
37.32% of the earnings are spent on dividend by HXL. This is a low number and sustainable payout ratio.
DP37.32%
EPS Next 2Y16.77%
EPS Next 3Y18.98%
48.31
-2.19 (-4.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners104.62%
Inst Owner Change-0.02%
Ins Owners0.74%
Ins Owner Change3.2%
Market Cap3.88B
Analysts66.67
Price Target72.38 (49.82%)
Short Float %4.2%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-2.21%
PT rev (3m)0.38%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-16.43%
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-12.59%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-4.56%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 17.45 | ||
| P/S | 2.04 | ||
| P/FCF | 19.14 | ||
| P/OCF | 13.4 | ||
| P/B | 2.54 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 12.87 |
EPS(TTM)1.96
EY4.06%
EPS(NY)2.77
Fwd EY5.73%
FCF(TTM)2.52
FCFY5.22%
OCF(TTM)3.61
OCFY7.46%
SpS23.67
BVpS19.01
TBVpS16.06
PEG (NY)4.47
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 | 4.36 |
F-Score7
WACC9.72%
ROIC/WACC0.89
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 Y5.52%
EPS Next 2Y16.77%
EPS Next 3Y18.98%
EPS Next 5Y15.88%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y12.83%
Revenue growth 5Y-4.18%
Sales Q2Q%-3.35%
Revenue Next Year4.63%
Revenue Next 2Y7.39%
Revenue Next 3Y7.51%
Revenue Next 5Y6.39%
EBIT growth 1Y9.25%
EBIT growth 3Y49.54%
EBIT growth 5Y-11.1%
EBIT Next Year64.07%
EBIT Next 3Y28.76%
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%