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Hexcel

NYSE:HXL
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HXL
NYSE
$7B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. The last earnings update was 55 days ago. More info.


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HXL Share Price and Events
7 Day Returns
-1.1%
NYSE:HXL
-2.2%
US Aerospace & Defense
0.3%
US Market
1 Year Returns
8.3%
NYSE:HXL
0.8%
US Aerospace & Defense
0.7%
US Market
HXL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hexcel (HXL) -1.1% 9.3% 10.4% 8.3% 81.4% 87.6%
US Aerospace & Defense -2.2% 0.9% 6% 0.8% 41.6% 59%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • HXL outperformed the Aerospace & Defense industry which returned 0.8% over the past year.
  • HXL outperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
HXL
Industry
5yr Volatility vs Market

HXL Value

 Is Hexcel undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hexcel to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hexcel.

NYSE:HXL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HXL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.875 (1 + (1- 21%) (18.92%))
1.003
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.003 * 5.96%)
8.71%

Discounted Cash Flow Calculation for NYSE:HXL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hexcel is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HXL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.71%)
2019 252.09 Analyst x8 231.89
2020 321.09 Analyst x8 271.69
2021 331.33 Analyst x3 257.90
2022 341.34 Est @ 3.02% 244.39
2023 351.35 Est @ 2.93% 231.40
2024 361.44 Est @ 2.87% 218.97
2025 371.66 Est @ 2.83% 207.13
2026 382.06 Est @ 2.8% 195.86
2027 392.68 Est @ 2.78% 185.18
2028 403.53 Est @ 2.76% 175.05
Present value of next 10 years cash flows $2,219.47
NYSE:HXL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $403.53 × (1 + 2.73%) ÷ (8.71% – 2.73%)
$6,931.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,931.35 ÷ (1 + 8.71%)10
$3,006.70
NYSE:HXL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,219.47 + $3,006.70
$5,226.17
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,226.17 / 84.89
$61.57
NYSE:HXL Discount to Share Price
Calculation Result
Value per share (USD) From above. $61.57
Current discount Discount to share price of $76.68
= -1 x ($76.68 - $61.57) / $61.57
-24.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hexcel is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hexcel's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hexcel's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HXL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.31
NYSE:HXL Share Price ** NYSE (2019-06-17) in USD $76.68
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 38 Publicly-Listed Aerospace & Defense Companies 22.79x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hexcel.

NYSE:HXL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HXL Share Price ÷ EPS (both in USD)

= 76.68 ÷ 3.31

23.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hexcel is overvalued based on earnings compared to the US Aerospace & Defense industry average.
  • Hexcel is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Hexcel's expected growth come at a high price?
Raw Data
NYSE:HXL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
8%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 33 Publicly-Listed Aerospace & Defense Companies 1.92x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:HXL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.13x ÷ 8%

2.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hexcel is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hexcel's assets?
Raw Data
NYSE:HXL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $16.18
NYSE:HXL Share Price * NYSE (2019-06-17) in USD $76.68
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 55 Publicly-Listed Aerospace & Defense Companies 2.69x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:HXL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HXL Share Price ÷ Book Value per Share (both in USD)

= 76.68 ÷ 16.18

4.74x

* Primary Listing of Hexcel.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hexcel is overvalued based on assets compared to the US Aerospace & Defense industry average.
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Value checks
We assess Hexcel's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Hexcel has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HXL Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hexcel expected to grow at an attractive rate?
  • Hexcel's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Hexcel's earnings growth is positive but not above the United States of America market average.
  • Hexcel's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HXL Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HXL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 8%
NYSE:HXL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 5.2%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HXL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HXL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,803 377 1
2021-12-31 2,686 480 355 7
2020-12-31 2,567 477 329 13
2019-12-31 2,431 441 300 13
NYSE:HXL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,259 405 287
2018-12-31 2,189 421 277
2018-09-30 2,140 399 299
2018-06-30 2,091 404 288
2018-03-31 2,035 437 281
2017-12-31 1,973 429 284
2017-09-30 1,945 423 255
2017-06-30 1,954 449 254
2017-03-31 1,985 445 258
2016-12-31 2,004 401 250
2016-09-30 1,986 424 244
2016-06-30 1,934 386 230

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hexcel's earnings are expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
  • Hexcel's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HXL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Hexcel Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HXL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 4.48 4.48 4.48 1.00
2021-12-31 4.25 4.50 4.05 5.00
2020-12-31 3.89 4.08 3.71 9.00
2019-12-31 3.50 3.60 3.40 9.00
NYSE:HXL Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.31
2018-12-31 3.15
2018-09-30 3.35
2018-06-30 3.21
2018-03-31 3.11
2017-12-31 3.13
2017-09-30 2.81
2017-06-30 2.77
2017-03-31 2.80
2016-12-31 2.69
2016-09-30 2.61
2016-06-30 2.44

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hexcel is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Hexcel's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hexcel has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HXL Past Performance

  How has Hexcel performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hexcel's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hexcel's year on year earnings growth rate has been positive over the past 5 years.
  • Hexcel's 1-year earnings growth is less than its 5-year average (2.2% vs 7.8%)
  • Hexcel's earnings growth has not exceeded the US Aerospace & Defense industry average in the past year (2.2% vs 31.1%).
Earnings and Revenue History
Hexcel's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hexcel Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HXL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,258.90 287.20 149.10 57.00
2018-12-31 2,189.10 276.60 146.00 55.90
2018-09-30 2,139.80 298.60 150.40 53.60
2018-06-30 2,090.80 288.20 152.50 51.50
2018-03-31 2,034.60 281.00 155.30 50.60
2017-12-31 1,973.30 284.00 151.80 49.40
2017-09-30 1,945.10 255.40 152.20 48.60
2017-06-30 1,954.10 253.90 152.60 48.30
2017-03-31 1,985.40 258.40 153.10 47.80
2016-12-31 2,004.30 249.80 157.60 46.90
2016-09-30 1,985.70 244.20 156.90 45.60
2016-06-30 1,934.00 229.50 157.30 44.70
2016-03-31 1,887.10 225.10 156.80 43.50
2015-12-31 1,861.20 237.20 156.10 44.30
2015-09-30 1,868.10 236.20 158.40 46.80
2015-06-30 1,871.20 238.50 155.80 46.30
2015-03-31 1,865.60 227.40 154.80 46.80
2014-12-31 1,855.50 209.40 149.10 47.90
2014-09-30 1,810.50 203.60 146.70 45.00
2014-06-30 1,770.90 196.50 146.70 45.10
2014-03-31 1,723.40 194.40 144.40 44.30
2013-12-31 1,678.20 187.90 141.40 41.70
2013-09-30 1,638.70 177.70 137.00 41.30
2013-06-30 1,618.00 168.80 134.40 40.00
2013-03-31 1,594.60 168.30 132.10 38.50
2012-12-31 1,578.20 164.30 130.70 36.70
2012-09-30 1,546.20 166.90 127.40 34.90
2012-06-30 1,506.40 159.30 127.00 33.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hexcel has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Hexcel used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Hexcel's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hexcel's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hexcel has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HXL Health

 How is Hexcel's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hexcel's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hexcel is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hexcel's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hexcel's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hexcel Company Filings, last reported 2 months ago.

NYSE:HXL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,372.40 1,231.50 43.70
2018-12-31 1,322.00 957.30 32.70
2018-09-30 1,367.30 990.00 47.20
2018-06-30 1,399.80 939.40 39.10
2018-03-31 1,562.50 840.00 49.80
2017-12-31 1,495.10 810.30 60.10
2017-09-30 1,426.70 833.80 119.10
2017-06-30 1,330.30 821.60 45.50
2017-03-31 1,262.70 841.20 82.10
2016-12-31 1,244.90 688.80 35.20
2016-09-30 1,259.40 674.90 45.70
2016-06-30 1,225.10 707.60 38.90
2016-03-31 1,217.50 688.90 24.20
2015-12-31 1,179.60 576.50 51.80
2015-09-30 1,195.30 596.40 43.20
2015-06-30 1,247.00 508.00 35.30
2015-03-31 1,165.50 480.20 22.70
2014-12-31 1,149.90 416.30 70.90
2014-09-30 1,127.20 432.80 37.70
2014-06-30 1,156.20 397.80 43.80
2014-03-31 1,165.00 354.80 50.00
2013-12-31 1,160.40 295.00 65.50
2013-09-30 1,119.80 266.80 59.70
2013-06-30 1,041.20 314.00 56.70
2013-03-31 1,010.40 273.90 18.30
2012-12-31 994.10 256.60 32.60
2012-09-30 948.90 296.40 43.20
2012-06-30 894.50 299.90 32.60
  • Hexcel's level of debt (85.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (30.5% vs 85.2% today).
  • Debt is well covered by operating cash flow (34.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.4x coverage).
X
Financial health checks
We assess Hexcel's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hexcel has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HXL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.78%
Current annual income from Hexcel dividends. Estimated to be 0.84% next year.
If you bought $2,000 of Hexcel shares you are expected to receive $16 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hexcel's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Hexcel's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HXL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HXL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.67 5.00
2020-12-31 0.65 6.00
2019-12-31 0.61 6.00
NYSE:HXL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-23 0.600 0.827
2018-10-22 0.600 0.940
2018-07-23 0.600 0.898
2018-04-23 0.500 0.726
2018-01-24 0.500 0.756
2017-10-18 0.500 0.809
2017-04-19 0.440 0.827
2017-01-25 0.440 0.827
2016-10-19 0.440 0.889
2016-07-20 0.440 1.000
2016-01-25 0.400 0.934
2015-10-19 0.400 0.888
2015-07-20 0.400 0.824
2015-04-20 0.400 0.800
2015-01-12 0.400 0.848

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hexcel is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Hexcel is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Hexcel's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Hexcel's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.6x coverage).
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Income/ dividend checks
We assess Hexcel's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hexcel afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hexcel has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HXL Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Stanage
COMPENSATION $6,346,562
AGE 59
TENURE AS CEO 5.8 years
CEO Bio

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 joined Hexcel Corporation in November 2009 and served as its Chief Operating Officer since May 3, 2012. His over 20 years of management and operations experience at Dana Corporation and Honeywell provide him with substantial expertise in the management, financial and operational requirements of a global manufacturing company. He served as the President of Heavy Vehicle Products, Heavy Vehicle Technologies and Systems Group of Dana Holding Corporation (also known as Dana Corp.) from December 31, 2005 to July 31, 2009. He served as Vice President and General Manager of Commercial Vehicle Group at Dana Holding Corporation from August 22, 2005 to December 2005. He was responsible for leading Dana's global commercial vehicle operations. He served as a Vice President and General Manager of the Engine Systems and Accessories division of Honeywell Inc., which is associated with Dana Holding Corporation's aerospace operations. From 1986 to 2005, he held positions of increasing responsibility in engineering, operations and marketing with Honeywell Inc. His subsequent roles at Honeywell included serving as Marketing Manager for Aerospace Equipment Systems, Director of Engineering and Program Management, Vice President of Operations and Vice President of Integrated Supply Chain and Technology for the Consumer Products Group. He served as Vice President and General Manager of the Aerospace Group's $1.4 billion Engine Systems & Accessories Division. Mr. Stanage has extensive knowledge and experience in executive leadership and operational and management issues relevant to manufacturing environments. He has subject matter expertise in the areas of engineering and production. He began his career as Design Engineer with Clark Equipment Company. He has been a Director of TriMas Corporation since November 1, 2013 and Hexcel Corporation since August 1, 2013. Mr. Stanage earned his Undergraduate Degree in Mechanical Engineering at Western Michigan University and his Master's Degree in Business Administration from the University of Notre Dame. He is also a graduate of the executive leadership program at the American Graduate School of International Management (Thunderbird).

CEO Compensation
  • Nick's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nick's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Hexcel management team in years:

3.1
Average Tenure
56.5
Average Age
  • The tenure for the Hexcel management team is about average.
Management Team

Nick Stanage

TITLE
Chairman of the Board
COMPENSATION
$6M
AGE
59
TENURE
5.8 yrs

Patrick Winterlich

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
48
TENURE
1.8 yrs

Gail Lehman

TITLE
Executive VP
COMPENSATION
$1M
AGE
58
TENURE
2.4 yrs

Rob Hennemuth

TITLE
Executive Vice President of Human Resources & Communications
COMPENSATION
$2M
AGE
62
TENURE
3.1 yrs

Thierry Merlot

TITLE
President of Aerospace
COMPENSATION
$1M
AGE
58
TENURE
3.1 yrs

Kim Hendricks

TITLE
Senior VP
AGE
54
TENURE
9.8 yrs

Paul Mackenzie

TITLE
Senior VP & CTO
TENURE
3.4 yrs

Don Morrison

TITLE
Senior VP & Chief Information Officer

Tim Swords

TITLE
President of Industrial
AGE
55
TENURE
3.1 yrs

Brett Schneider

TITLE
President of Global Fibers
AGE
45
Board of Directors Tenure

Average tenure and age of the Hexcel board of directors in years:

5.4
Average Tenure
60
Average Age
  • The tenure for the Hexcel board of directors is about average.
Board of Directors

Joel Beckman

TITLE
Independent Director
COMPENSATION
$193K
AGE
62
TENURE
16.3 yrs

Nick Stanage

TITLE
Chairman of the Board
COMPENSATION
$6M
AGE
59
TENURE
5.4 yrs

Jeff Campbell

TITLE
Lead Director
COMPENSATION
$213K
AGE
57
TENURE
0.9 yrs

Lynn Brubaker

TITLE
Independent Director
COMPENSATION
$198K
AGE
60
TENURE
13.5 yrs

Tom Gendron

TITLE
Independent Director
COMPENSATION
$198K
AGE
57
TENURE
8.5 yrs

Jeff Graves

TITLE
Independent Director
COMPENSATION
$190K
AGE
57
TENURE
11.9 yrs

Guy Hachey

TITLE
Independent Director
COMPENSATION
$185K
AGE
63
TENURE
4.7 yrs

Cindy Egnotovich

TITLE
Independent Director
COMPENSATION
$188K
AGE
60
TENURE
4.4 yrs

Cathy Suever

TITLE
Director
COMPENSATION
$160K
AGE
60
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • Hexcel insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. May 19 Sell Thierry Merlot Individual 28. May 19 28. May 19 -6,100 $73.71 $-449,643
28. May 19 Sell Gail Lehman Individual 24. May 19 24. May 19 -733 $74.56 $-54,652
10. May 19 Sell Thierry Merlot Individual 08. May 19 08. May 19 -3,241 $71.00 $-230,111
31. Jul 18 Buy Jeffrey Graves Individual 27. Jul 18 27. Jul 18 1,550 $69.00 $106,947
X
Management checks
We assess Hexcel's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hexcel has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HXL News

Simply Wall St News

Evaluating Hexcel Corporation’s (NYSE:HXL) Investments In Its Business

Finally, we'll look at how its current liabilities affect its ROCE. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Hexcel: 0.14 = US$392m ÷ (US$3.2b - US$350m) (Based on the trailing twelve months to March 2019.) So, Hexcel has an ROCE of 14%. … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Are Insiders Selling Hexcel Corporation (NYSE:HXL) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Hexcel Corporation (NYSE:HXL). … Insiders at Hexcel Have Sold Stock Recently Over the last three months, we've seen significant insider selling at Hexcel. … Insider Ownership of Hexcel Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders.

Simply Wall St -

Is Hexcel Corporation (NYSE:HXL) Excessively Paying Its CEO?

See our latest analysis for Hexcel How Does Nick Stanage's Compensation Compare With Similar Sized Companies? … According to our data, Hexcel Corporation has a market capitalization of US$6.0b, and pays its CEO total annual compensation worth US$6.3m. … NYSE:HXL CEO Compensation, May 21st 2019 Is Hexcel Corporation Growing?

Simply Wall St -

What Investors Should Know About Hexcel Corporation's (NYSE:HXL) Financial Strength

Help shape the future of investing tools and you could win a $250 gift card! … Stocks with market capitalization between $2B and $10B, such as Hexcel Corporation (NYSE:HXL) with a size of US$6.0b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Hexcel Corporation (NYSE:HXL)

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Hexcel has a price to earnings ratio of 21.74, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should We Be Delighted With Hexcel Corporation's (NYSE:HXL) ROE Of 21%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.21 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Do Analysts See Hexcel Corporation (NYSE:HXL) Performing In The Years Ahead?

Hexcel Corporation's (NYSE:HXL) most recent earnings update in December 2018a … indicated … company

Simply Wall St -

What Does Hexcel Corporation's (NYSE:HXL) Share Price Indicate?

received a lot of attention from a substantial price increase on the NYSE over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

Introducing Hexcel, A Stock That Climbed 68% In The Last Three Years

For example, the Hexcel Corporation (NYSE:HXL) share price is up 68% in the last three years, clearly besting than the market return of around 40% (not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Hexcel was able to grow its EPS at 8.3% per year over three years, sending the share price higher.

Simply Wall St -

Interested In Hexcel Corporation (NYSE:HXL)? Here's How It Performed Recently

Below, I assess HXL's latest performance announced on 31 December 2018 and evaluate these figures to its historical trend and industry movements. … HXL's trailing twelve-month earnings (from 31 December 2018) of US$277m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.3%, indicating the rate at which HXL is growing has slowed down

Simply Wall St -

HXL Company Info

Description

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 segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in cars, boats, and trains. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, helicopter blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in helicopter blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings, as well as HexTool tooling, which are mold tools used in the manufacture of composite aircraft structures. The company sells its products directly through its sales personnel, as well as through independent distributors and manufacturer representatives in the Americas, Europe, the Asia Pacific, Russia, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.

Details
Name: Hexcel Corporation
HXL
Exchange: NYSE
Founded: 1946
$6,509,218,051
84,888,081
Website: http://www.hexcel.com
Address: Hexcel Corporation
281 Tresser Boulevard,
16th Floor,
Stamford,
Connecticut, 06901,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HXL Common Stock New York Stock Exchange US USD 02. Jan 1980
DB HXL Common Stock Deutsche Boerse AG DE EUR 02. Jan 1980
BST HXL Common Stock Boerse-Stuttgart DE EUR 02. Jan 1980
ENXTPA HXL Common Stock Euronext Paris FR EUR 02. Jan 1980
Number of employees
Current staff
Staff numbers
6,626
Hexcel employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 23:38
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/09
Last earnings filing: 2019/04/23
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.