HEXCEL CORP (HXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HXL - US4282911084 - Common Stock
84.15 USD
+0.97 (+1.17%)
84.74 USD
+0.59 (+0.7%)
HXL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. HXL has only an average score on both its financial health and profitability. HXL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HXL was profitable.
- In the past year HXL had a positive cash flow from operations.
- HXL had positive earnings in each of the past 5 years.
- HXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.49%, HXL is in line with its industry, outperforming 52.05% of the companies in the same industry.
- HXL has a Return On Equity of 4.39%. This is comparable to the rest of the industry: HXL outperforms 53.42% of its industry peers.
- HXL has a Return On Invested Capital of 6.95%. This is in the better half of the industry: HXL outperforms 61.64% 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 8.56%.
| 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 (3.67%) which is comparable to the rest of the industry.
- HXL's Profit Margin has declined in the last couple of years.
- HXL has a better Operating Margin (10.50%) than 71.23% of its industry peers.
- 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.
- Compared to 1 year ago, HXL has less shares outstanding
- HXL has less shares outstanding than it did 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 5.62. This indicates that HXL is financially healthy and has little risk of bankruptcy at the moment.
- HXL's Altman-Z score of 5.62 is fine compared to the rest of the industry. HXL outperforms 60.27% of its industry peers.
- 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 79.45% of the companies in the same industry.
- A Debt/Equity ratio of 0.48 indicates that HXL is not too dependend on debt financing.
- 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 | 5.62 |
ROIC/WACC0.71
WACC9.76%
2.3 Liquidity
- A Current Ratio of 2.75 indicates that HXL has no problem at all paying its short term obligations.
- HXL has a Current ratio (2.75) which is in line with its industry peers.
- A Quick Ratio of 1.50 indicates that HXL should not have too much problems paying its short term obligations.
- HXL's Quick ratio of 1.50 is in line compared to the rest of the industry. HXL outperforms 56.16% of 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%.
- 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.
- 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
- HXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.31% yearly.
- The Revenue is expected to grow by 8.35% on average over the next years. This is quite good.
EPS Next Y-13.34%
EPS Next 2Y8.16%
EPS Next 3Y18.84%
EPS Next 5Y23.31%
Revenue Next Year-1.04%
Revenue Next 2Y4.35%
Revenue Next 3Y6.95%
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.
- 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 47.81 indicates a quite expensive valuation of HXL.
- HXL's Price/Earnings ratio is a bit cheaper when compared to the industry. HXL is cheaper than 63.01% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, HXL is valued quite expensively.
- With a Price/Forward Earnings ratio of 35.43, HXL can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, HXL is valued a bit cheaper than the industry average as 67.12% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of HXL to the average of the S&P500 Index (24.26), we can say HXL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.81 | ||
| Fwd PE | 35.43 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HXL is valued a bit cheaper than the industry average as 69.86% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HXL indicates a rather cheap valuation: HXL is cheaper than 87.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.55 | ||
| EV/EBITDA | 22.81 |
4.3 Compensation for Growth
- HXL's earnings are expected to grow with 18.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.16%
EPS Next 3Y18.84%
5. Dividend
5.1 Amount
- HXL has a yearly dividend return of 0.81%, which is pretty low.
- HXL's Dividend Yield is rather good when compared to the industry average which is at 0.34. HXL pays more dividend than 84.93% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HXL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 2Y8.16%
EPS Next 3Y18.84%
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 47.81 and the Price/Book (PB) ratio is 4.28.
What is the financial health of HEXCEL CORP (HXL) stock?
The financial health rating of HEXCEL CORP (HXL) is 6 / 10.