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

2.4%

NYSE:HXL

2.8%

US Aerospace & Defense

-0.02%

US Market


1 Year Return

23.5%

NYSE:HXL

6.2%

US Aerospace & Defense

1.6%

US Market

HXL outperformed the Aerospace & Defense industry which returned 5.8% over the past year.

HXL outperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

HXLIndustryMarket
7 Day2.4%2.8%-0.02%
30 Day2.4%5.0%2.7%
90 Day6.3%7.8%1.4%
1 Year24.6%23.5%8.2%6.2%3.8%1.6%
3 Year98.8%93.6%64.0%55.0%45.2%35.8%
5 Year121.2%112.1%102.6%83.4%61.8%44.1%

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

23.9x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hexcel's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hexcel's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hexcel is good value 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

Hexcel is poor value based on expected growth next year.


Price Based on Value of Assets

Hexcel is overvalued based on assets compared to the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is Hexcel expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hexcel's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Hexcel's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

Hexcel's revenue growth is positive but not above the United States of America market average.

Hexcel's earnings growth is positive but not above the United States of America market average.

Hexcel's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Hexcel is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

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 (3.9% vs 7.6%)

Hexcel's earnings growth has not exceeded the US Aerospace & Defense industry average in the past year (3.9% vs 13.7%).


Return on Equity

Hexcel has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Hexcel used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

Hexcel's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hexcel's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Hexcel's level of debt (77.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (34.2% vs 77.8% today).

Debt is well covered by operating cash flow (37.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

0.82%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hexcel's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Hexcel's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

Whilst dividend payments have been stable, Hexcel has been paying a dividend for less than 10 years.

Dividend payments have increased, but Hexcel only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6.1x coverage).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Nick Stanage (60yo)

6.1yrs

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

Nick's remuneration is about average for companies of similar size in United States of America.

Nick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

The tenure for the Hexcel management team is about average.


Board Age and Tenure

5.7yrs

Average Tenure

61yo

Average Age

The tenure for the Hexcel board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 3.3yrs
    • Compensation: US$1.62m
  • Nick Stanage (60yo)

    Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$6.35m
  • Kim Hendricks (55yo)

    Senior VP

    • Tenure: 10yrs
  • Gail Lehman (59yo)

    Executive VP

    • Tenure: 2.7yrs
    • Compensation: US$1.29m
  • Thierry Merlot (59yo)

    President of Aerospace

    • Tenure: 3.3yrs
    • Compensation: US$1.04m
  • Tim Swords (56yo)

    President of Industrial

    • Tenure: 3.3yrs
  • Paul Mackenzie

    Senior VP & CTO

    • Tenure: 3.7yrs
  • Patrick Winterlich (49yo)

    Executive VP & CFO

    • Tenure: 2.1yrs
    • 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: 16.5yrs
    • Compensation: US$192.98k
  • Guy Hachey (64yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$185.48k
  • Tom Gendron (58yo)

    Independent Director

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

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$190.40k
  • Jeff Campbell (58yo)

    Lead Director

    • Tenure: 1.2yrs
    • Compensation: US$212.63k
  • Cindy Egnotovich (61yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$187.98k
  • Nick Stanage (60yo)

    Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$6.35m
  • Lynn Brubaker (61yo)

    Independent Director

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

    Director

    • Tenure: 1.3yrs
    • 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$7.098b
  • 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 Analysis2019/09/18 23:35
End of Day Share Price2019/09/18 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.