Hexcel Corp. (HXL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Huntington Ingalls Industries, Inc.

Leidos Holdings, Inc.

Teledyne Technologies, Inc.

Textron, Inc.

Axon Enterprise, Inc.

Hexcel Corp.

TransDigm Group, Inc.

Why is Hexcel Corp. ?

The company has declared negative results in Mar'2025 after 3 consecutive positive quarters

ROCE(HY) Lowest at 5.63%
INTEREST COVERAGE RATIO(Q) Lowest at 860.44
RAW MATERIAL COST(Y) Grown by 12.94% (YoY)

With ROCE of 10.05%, it has a expensive valuation with a 3.01 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 17.93%, its profits have risen by 105.9% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hexcel Corp. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hexcel Corp.

18.82%

0.42

33.36%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.09%

EBIT Growth (5y)

-9.65%

EBIT to Interest (avg)

4.27

Debt to EBITDA (avg)

2.93

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.76

Tax Ratio

13.84%

Dividend Payout Ratio

37.70%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.41%

ROE (avg)

6.47%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.92

EV to EBIT

29.92

EV to EBITDA

19.31

EV to Capital Employed

3.01

EV to Sales

3.55

PEG Ratio

0.31

Dividend Yield

66.33%

ROCE (Latest)

10.05%

ROE (Latest)

11.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 5.94

DIVIDEND PAYOUT RATIO(Y)

Highest at 101.49%

NET PROFIT(9M)

Higher at USD 108.16 MM

-17What is not working for the Company

ROCE(HY)

Lowest at 5.63%

INTEREST COVERAGE RATIO(Q)

Lowest at 860.44

RAW MATERIAL COST(Y)

Grown by 12.94% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 48.3 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.96 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.94 times

INTEREST(Q)

Highest at USD 9.1 MM

NET PROFIT(Q)

Lowest at USD 26.63 MM

Here's what is working for Hexcel Corp.

Dividend per share

Highest at USD 5.94 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 101.49%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Hexcel Corp.

Interest

At USD 9.1 MM has Grown at 16.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 860.44

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 26.63 MM has Fallen at -37.66%

over average net sales of the previous four periods of USD 42.71 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

Highest at USD 9.1 MM

in the last five periods and Increased by 16.67% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

Lowest at USD 26.63 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 48.3 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.94 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.94% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales