NYSE:HXL

Stock Analysis Report

Executive Summary

Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets.

Snowflake

Fundamentals

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Hexcel's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

HXL

-0.2%

US Aerospace & Defense

1.8%

US Market


1 Year Return

21.7%

HXL

8.1%

US Aerospace & Defense

7.3%

US Market

Return vs Industry: HXL exceeded the US Aerospace & Defense industry which returned 8.1% over the past year.

Return vs Market: HXL exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

HXLIndustryMarket
7 Day-0.7%-0.2%1.8%
30 Day-8.0%-3.2%-0.7%
90 Day-4.3%3.7%0.06%
1 Year22.8%21.7%10.2%8.1%9.7%7.3%
3 Year78.7%74.1%60.7%52.0%46.3%36.9%
5 Year99.5%91.3%95.5%77.1%64.5%46.5%

Price Volatility Vs. Market

How volatile is Hexcel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hexcel undervalued compared to its fair value and its price relative to the market?

21.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HXL ($76.72) is trading above our estimate of fair value ($75.94)

Significantly Undervalued: HXL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HXL is good value based on its PE Ratio (22x) compared to the Aerospace & Defense industry average (22.4x).

PE vs Market: HXL is poor value based on its PE Ratio (22x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HXL is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: HXL is overvalued based on its PB Ratio (4.5x) compared to the US Aerospace & Defense industry average (2.4x).


Next Steps

Future Growth

How is Hexcel forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HXL's forecast earnings growth (7.2% per year) is above the savings rate (2.7%).

Earnings vs Market: HXL's earnings (7.2% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: HXL's earnings are forecast to grow, but not significantly.

Revenue vs Market: HXL's revenue (4.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: HXL's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HXL's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has Hexcel performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HXL's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: HXL's earnings growth over the past year (3.9%) is below its 5-year average (7.6% per year).

Earnings vs Industry: HXL earnings growth over the past year (3.9%) underperformed the Aerospace & Defense industry 12.2%.


Return on Equity

High ROE: HXL's Return on Equity (20.8%) is considered high.


Return on Assets

ROA vs Industry: HXL has a higher Return on Assets than the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: HXL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hexcel's financial position?


Financial Position Analysis

Short Term Liabilities: HXL's short term assets ($798.1M) exceeds its short term liabilities ($359.7M)

Long Term Liabilities: HXL's short term assets (798.1M) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: HXL's debt to equity ratio (77.8%) is considered high

Reducing Debt: HXL's debt to equity ratio has increased from 34.3% to 77.8% over the past 5 years.

Debt Coverage: HXL's debt is well covered by operating cash flow (37.5%).

Interest Coverage: HXL's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

Inventory Level: HXL has a high level of physical assets or inventory.

Debt Coverage by Assets: HXL's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Hexcel's current dividend yield, its reliability and sustainability?

0.89%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.5%markettop25%3.7%industryaverage1.8%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HXL's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HXL's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: Whilst dividend payments have been stable, HXL has been paying a dividend for less than 10 years.

Growing Dividend: HXL's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.2%), HXL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HXL's dividends in 3 years are forecast to be well covered by earnings (16.3% payout ratio).


Next Steps

Management

What is the CEO of Hexcel's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Nick Stanage (60yo)

6.2yrs

Tenure

US$6,346,562

Compensation

Mr. Nick L. Stanage has been the President and Chief Executive Officer of Hexcel Corporation since November 9, 2009 and since August 1, 2013 respectively and its Chairman since January 1, 2014. Mr. Stanage ...


CEO Compensation Analysis

Compensation vs. Market: Nick's total compensation ($USD6.35M) is about average for companies of similar size in the US market ($USD6.79M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.4yrs

Average Tenure

57.5yo

Average Age

Experienced Management: HXL's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: HXL's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$449,64330 May 19
Thierry Merlot
EntityIndividual
Role
Senior Key Executive
President of Aerospace
Shares6,100
Max PriceUS$73.71
SellUS$54,65228 May 19
Gail Lehman
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares733
Max PriceUS$74.56
SellUS$230,11110 May 19
Thierry Merlot
EntityIndividual
Role
Senior Key Executive
President of Aerospace
Shares3,241
Max PriceUS$71.00

Ownership Breakdown


Management Team

  • Rob Hennemuth (63yo)

    Executive Vice President of Human Resources & Communications

    • Tenure: 3.4yrs
    • Compensation: US$1.62m
  • Nick Stanage (60yo)

    Chairman of the Board

    • Tenure: 6.2yrs
    • Compensation: US$6.35m
  • Kim Hendricks (55yo)

    Senior VP

    • Tenure: 10.1yrs
  • Gail Lehman (59yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.29m
  • Thierry Merlot (59yo)

    President of Aerospace

    • Tenure: 3.4yrs
    • Compensation: US$1.04m
  • Tim Swords (56yo)

    President of Industrial

    • Tenure: 3.4yrs
  • Paul Mackenzie

    Senior VP & CTO

    • Tenure: 3.8yrs
  • Patrick Winterlich (49yo)

    Executive VP & CFO

    • Tenure: 2.2yrs
    • Compensation: US$1.34m
  • Brett Schneider (46yo)

    President of Global Fibers

    • Tenure: 0yrs
  • Don Morrison

    Senior VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Joel Beckman (63yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$192.98k
  • Guy Hachey (64yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$185.48k
  • Tom Gendron (58yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$197.98k
  • Jeff Graves (58yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$190.40k
  • Jeff Campbell (58yo)

    Lead Director

    • Tenure: 1.3yrs
    • Compensation: US$212.63k
  • Cindy Egnotovich (61yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$187.98k
  • Nick Stanage (60yo)

    Chairman of the Board

    • Tenure: 6.2yrs
    • Compensation: US$6.35m
  • Lynn Brubaker (61yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$197.98k
  • Cathy Suever (61yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$159.90k

Company Information

Hexcel Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hexcel Corporation
  • Ticker: HXL
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$6.528b
  • Shares outstanding: 85.08m
  • Website: https://www.hexcel.com

Number of Employees


Location

  • Hexcel Corporation
  • 281 Tresser Boulevard
  • 16th Floor
  • Stamford
  • Connecticut
  • 6901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HXLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
HXLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
HXLBST (Boerse-Stuttgart)YesCommon StockDEEURJan 1980

Biography

Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. It operates in two s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:38
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.