NYSE:HXL

Stock Analysis Report

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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 Analysis

Good value 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

Stable Share Price: HXL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.3%

HXL

6.9%

US Aerospace & Defense

3.0%

US Market


1 Year Return

-50.8%

HXL

-17.2%

US Aerospace & Defense

9.9%

US Market

Return vs Industry: HXL underperformed the US Aerospace & Defense industry which returned -16.9% over the past year.

Return vs Market: HXL underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

HXLIndustryMarket
7 Day17.3%6.9%3.0%
30 Day13.8%5.9%8.2%
90 Day-45.8%-22.1%0.4%
1 Year-50.4%-50.8%-0.4%-17.2%12.4%9.9%
3 Year-27.9%-29.6%17.4%-7.7%31.0%22.3%
5 Year-23.2%-26.4%58.6%15.2%58.1%40.3%

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?

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HXL ($36.19) is trading below our estimate of fair value ($52.08)

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


Price To Earnings Ratio

PE vs Industry: HXL is good value based on its PE Ratio (11.1x) compared to the Aerospace & Defense industry average (14.8x).

PE vs Market: HXL is good value based on its PE Ratio (11.1x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: HXL is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HXL is overvalued based on its PB Ratio (2.1x) compared to the US Aerospace & Defense industry average (2x).


Next Steps

Future Growth

How is Hexcel forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HXL's forecast earnings growth (10.9% per year) is above the savings rate (2.2%).

Earnings vs Market: HXL's earnings (10.9% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: HXL's revenue (1% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: HXL's revenue (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%).


Next Steps

Past Performance

How has Hexcel performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HXL has high quality earnings.

Growing Profit Margin: HXL's current net profit margins (12.1%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: HXL's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: HXL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HXL had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (2.3%).


Return on Equity

High ROE: HXL's Return on Equity (19.5%) is considered low.


Next Steps

Financial Health

How is Hexcel's financial position?


Financial Position Analysis

Short Term Liabilities: HXL's short term assets ($1.0B) exceed its short term liabilities ($309.9M).

Long Term Liabilities: HXL's short term assets ($1.0B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: HXL's debt to equity ratio (97.6%) is considered high.

Reducing Debt: HXL's debt to equity ratio has increased from 41.2% to 97.6% over the past 5 years.

Debt Coverage: HXL's debt is well covered by operating cash flow (32.7%).

Interest Coverage: HXL's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HXL's dividend (1.88%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: HXL's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (4.52%).


Stability and Growth of Payments

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 (20.2%), 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 (19.4% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Nick Stanage (60yo)

6.83yrs

Tenure

US$8,822,920

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 ($USD8.82M) is above average for companies of similar size in the US market ($USD5.91M).

Compensation vs Earnings: Nick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nick Stanage
Chairman of the Board6.83yrsUS$8.82m0.34% $10.3m
Patrick Winterlich
Executive VP & CFO2.83yrsUS$1.74m0.013% $392.8k
Gail Lehman
Executive VP3.42yrsUS$1.45m0.0073% $221.2k
Robert Hennemuth
Executive Vice President of Human Resources & Communications4.08yrsUS$1.85m0.064% $1.9m
Thierry Merlot
President of EMEA/AP & Industrial4.08yrsUS$2.37m0.041% $1.2m
Kimberly Hendricks
Senior VP10.75yrsno data0.040% $1.2m
Paul Mackenzie
Senior VP & CTO4.42yrsno datano data
Don Morrison
Senior VP & Chief Information Officerno datano datano data
Kurt Goddard
Vice President of Investor Relationsno datano datano data
Jane Austin
Senior Vice President of Integrated Supply Chainno datano datano data

4.1yrs

Average Tenure

59yo

Average Age

Experienced Management: HXL's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nick Stanage
Chairman of the Board6.83yrsUS$8.82m0.34% $10.3m
Joel Beckman
Independent Director17.25yrsUS$192.87kno data
Guy Hachey
Independent Director5.67yrsUS$185.47kno data
Thomas Gendron
Independent Director9.5yrsUS$197.97k0.026% $796.2k
Jeffrey Graves
Independent Director12.92yrsUS$190.37k0.0036% $108.5k
Jeffrey Campbell
Lead Independent Director1.92yrsUS$230.47k0.0094% $282.5k
Cynthia Egnotovich
Independent Director5.42yrsUS$187.97kno data
Lynn Brubaker
Independent Director14.5yrsUS$197.97k0.015% $445.1k
Catherine Suever
Independent Director2.08yrsUS$187.97k0.0037% $112.4k

6.4yrs

Average Tenure

61yo

Average Age

Experienced Board: HXL's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HXL insiders have bought more shares than they have sold 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$3.022b
  • Shares outstanding: 83.49m
  • Website: https://www.hexcel.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HXLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
HXLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
0P5HLSE (London Stock Exchange)YesCommon StockGBEURJan 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 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 automotive, marine, 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. The company sells its products directly through its managers, product managers, and sales personnel, as well as through independent distributors and manufacturer representatives in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 02:06
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.