NYSE:HXL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$5.1b

Last Updated

2021/06/19 22:26 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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

Stable Share Price: HXL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HXL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.1%

HXL

-2.8%

US Aerospace & Defense

-1.9%

US Market


1 Year Return

36.7%

HXL

24.0%

US Aerospace & Defense

38.2%

US Market

Return vs Industry: HXL exceeded the US Aerospace & Defense industry which returned 22.9% over the past year.

Return vs Market: HXL underperformed the US Market which returned 39.4% over the past year.


Shareholder returns

HXLIndustryMarket
7 Day-2.1%-2.8%-1.9%
30 Day15.8%0.9%1.1%
90 Day-0.2%8.2%4.3%
1 Year36.7%36.7%26.6%24.0%40.4%38.2%
3 Year-8.0%-9.5%28.9%2.5%57.5%47.8%
5 Year51.7%46.7%85.0%39.1%127.2%101.7%

Long-Term 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

No news available

Valuation

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

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HXL ($60.64) is trading below our estimate of fair value ($76.55)

Significantly Below Fair Value: HXL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HXL is unprofitable, so we can't compare its PE Ratio to the US Aerospace & Defense industry average.

PE vs Market: HXL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HXL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HXL is overvalued based on its PB Ratio (3.4x) compared to the US Aerospace & Defense industry average (2.7x).


Future Growth

How is Hexcel forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

51.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HXL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: HXL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HXL's is expected to become profitable in the next 3 years.

Revenue vs Market: HXL's revenue (13.1% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: HXL's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HXL's Return on Equity is forecast to be low in 3 years time (12%).


Past Performance

How has Hexcel performed over the past 5 years?

-11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HXL is currently unprofitable.

Growing Profit Margin: HXL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HXL is unprofitable, and losses have increased over the past 5 years at a rate of 11% per year.

Accelerating Growth: Unable to compare HXL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HXL is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-6.2%).


Return on Equity

High ROE: HXL has a negative Return on Equity (-1.66%), as it is currently unprofitable.


Financial Health

How is Hexcel's financial position?


Financial Position Analysis

Short Term Liabilities: HXL's short term assets ($569.4M) exceed its short term liabilities ($219.9M).

Long Term Liabilities: HXL's short term assets ($569.4M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: HXL's debt to equity ratio (61.1%) is considered high.

Reducing Debt: HXL's debt to equity ratio has increased from 56.5% to 61.1% over the past 5 years.

Debt Coverage: HXL's debt is well covered by operating cash flow (28%).

Interest Coverage: Insufficient data to determine if HXL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

0.38%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HXL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HXL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HXL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HXL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HXL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HXL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Nick Stanage (61 yo)

7.83yrs

Tenure

US$7,953,938

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 ($USD7.95M) is about average for companies of similar size in the US market ($USD6.67M).

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


Leadership Team

Experienced Management: HXL's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: HXL's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HXL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$5.080b
  • Shares outstanding: 83.77m
  • Website: https://www.hexcel.com

Number of Employees


Location

  • Hexcel Corporation
  • 281 Tresser Boulevard
  • 16th Floor
  • Stamford
  • Connecticut
  • 06901-3261
  • United States

Listings


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 Analysis2021/06/19 22:26
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.