Hexcel Corporation
Hexcel Corporation Fundamental Analysis
Hexcel Corporation (HXL) shows weak financial fundamentals with a PE ratio of 57.56, profit margin of 6.09%, and ROE of 8.35%. The company generates $1.9B in annual revenue with weak year-over-year growth of -0.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HXL's fundamental strength across five key dimensions:
Efficiency Score
WeakHXL struggles to generate sufficient returns from assets.
Valuation Score
ModerateHXL shows balanced valuation metrics.
Growth Score
WeakHXL faces weak or negative growth trends.
Financial Health Score
ExcellentHXL maintains a strong and stable balance sheet.
Profitability Score
WeakHXL struggles to sustain strong margins.
Key Financial Metrics
Is HXL Expensive or Cheap?
P/E Ratio
HXL trades at 57.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HXL's PEG of -88.07 indicates potential undervaluation.
Price to Book
The market values Hexcel Corporation at 5.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.84 times EBITDA. This signals the market has high growth expectations.
How Well Does HXL Make Money?
Net Profit Margin
For every $100 in sales, Hexcel Corporation keeps $6.09 as profit after all expenses.
Operating Margin
Core operations generate 9.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.35 in profit for every $100 of shareholder equity.
ROA
Hexcel Corporation generates $4.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hexcel Corporation produces operating cash flow of $276.27M, showing steady but balanced cash generation.
Free Cash Flow
Hexcel Corporation generates strong free cash flow of $249.64M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.31 in free cash annually.
FCF Yield
HXL converts 3.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
57.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-88.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HXL Stacks Against Its Sector Peers
| Metric | HXL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 57.56 | 26.45 | Worse (Expensive) |
| ROE | 8.35% | 1289.00% | Weak |
| Net Margin | 6.09% | -41634.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.71 | Neutral |
| Current Ratio | 2.45 | 10.09 | Strong Liquidity |
| ROA | 4.32% | -1505238.00% (disorted) | Weak |
HXL outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hexcel Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.88%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
263.78%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-8.07%
Industry Style: Cyclical, Value, Infrastructure
Declining