Hexcel Corporation

Hexcel Corporation

HXLยทNYSE

$88.07

-0.83%
IndustrialsAerospace & Defense

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 through 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, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft 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.

At a Glance

Live Snapshot
Market Cap$6.64B
EPS1.3800
P/E Ratio63.82
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 63.8).

Valuation inputs: P/E 63.8, earnings yield +1.6%, momentum -0.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +8.8%, ROIC +5.8%).

Profitability stack: net margin +5.8%, ROE +8.8%, ROIC +5.8%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +53.7%, momentum -0.8%, net margin +5.8%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

hxl

Hexcel Corporation Market vs Earnings Trajectory

HXL ยท NYSE

Loading price and EPS data...

Hexcel Corporation

Hexcel Corporation Fair Value Envelope

HXL ยท NYSE

Our analysis suggests that HXL has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $88.07, this represents a potential HIDDEN relative to our calculated worth for Hexcel Corporation.

Intrinsic Value
Current Price: $88.07
3Y-8.0%
5Y+263.0%
10Y-49.0%
3Y+20.0%
5Y+26.0%
10Y-6.0%
3Y-13.0%
5Y+245.0%
10Y-56.0%
3Y+33.0%
5Y-13.0%
10Y-43.0%
3Y+217.0%
5Y+44.0%
10Y+318.0%
3Y-5.0%
5Y-7.0%
10Y+13.0%
Hexcel Corporation

Hexcel Corporation Profit Bridge

HXL ยท NYSE
Revenue1.89B
Cost of Goods Sold (1.46B)
Gross Profit434.80M
Operating Expenses (263.20M)
Operating Income171.60M
Interest Expense (37.70M)
Other Income/Expense-36.60M
Pretax Income135.00M
Income Tax (25.60M)
Net Income109.40M
Net Income
109.40M

Profitability Analysis

Gross Margin

23.0%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

9.1%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

5.8%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

19.0%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

22.96%
Gross Profit Margin
-7%
3Y+1.0%
5Y+44.0%
10Y-19.0%
9.06%
Operating Profit Margin
-7%
3Y-18.0%
5Y+865.0%
10Y-50.0%
5.78%
Net Profit Margin
-17%
3Y-28.0%
5Y+174.0%
10Y-54.0%
8.75%
Return on Equity
1%
3Y+8.0%
5Y+317.0%
10Y-56.0%
4.05%
Return on Assets
-17%
3Y-9.0%
5Y+272.0%
10Y-61.0%
5.84%
Return on Invested Capital
-12%
3Y+5.0%
5Y-1152.0%
10Y-53.0%
HXL

Hexcel Corporation Cash Conversion Engine

HXL ยท NYSE
Net Income109.40M
Depreciation & Amortization122.30M
Stock-Based Compensation14.40M
Change in Working Capital-36.00M
Others14.50M
Capital Expenditures76.70M
Free Cash Flow307.20M

Cash Flow Quality Analysis

FCF Conversion Rate

280.8%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

33.3%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+51.4%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$36.00M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

hxl

Hexcel Corporation Funding & Solvency Profile

HXL ยท NYSE
Cash & Cash Equivalents54.10M
Net Receivables291.00M
Inventory339.80M
Other Current Assets84.80M
Total Current Assets770 M
Property, Plant & Equipment3.31B
Goodwill & Intangible Assets237.40M
Long-Term Investments5.00M
Other Non-Current Assets-1.60B
Total Non-Current Assets2 B
Total Assets
2.72B

Financial Health Analysis

Current Ratio

2.45x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

1.15x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

456 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

28% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

hxl

Hexcel Corporation Street Expectations Map

HXL ยท NYSE

Wall Street analysts project that HXL stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 90.25, with estimates ranging from a low of 75.00 to a high of 105.00.

Lowest Target
75.00
-14.84%
Consensus Target
90.25
2.48%
Highest Target
105.00
19.22%

The consensus 1-year price target stands at 90.25, with estimates ranging from a low of 75.00 to a high of 105.00.

Analyst Consensus Analysis

Upside Potential

+2.5%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

33.2% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Risk-Reward Profile

1.30x

Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

hxl

Hexcel Corporation Insider Positioning

HXL ยท NYSE

During the last 12 months, insiders have sold $945K worth of HXL shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

1.5K

139.20K

Net Activity

-139K

-$139K

6-9 Months

Bought

0

0.00

Sold

5.5K

401.97K

Net Activity

-402K

-$402K

9-12 Months

Bought

0

0.00

Sold

6.3K

403.87K

Net Activity

-404K

-$404K

Top Buyers

No buying activity

Top Sellers

1
MT

Merlot Thierry

Officer: See Remarks

5.4K sharesโ€ข1 transactions

$345K

2
WP

Winterlich Patrick

Officer: Evp, Cfo

3.4K sharesโ€ข1 transactions

$250K

3
SLJ

Smith Lyndon John

Officer: See Remarks

2.1K sharesโ€ข1 transactions

$152K

4
EAS

Evans Amy S

Officer: See Remarks

1.5K sharesโ€ข1 transactions

$139K

5
FG

Fitzsimons Gina

Officer: See Remarks

911 sharesโ€ข1 transactions

$59K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $945K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.22%
Dividend Yield
-2%
3Y+23.0%
5Y-
10Y-16.0%
ย 

hxl Dividend History

HXL
10Y CAGR +5%
Latest $0.18
Annual $0.7
5 year growth trend
Last Period: +0%