Why is Hexcel Corp. ?
1
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)
2
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 14.80%, its profits have risen by 105.9% ; the PEG ratio of the company is 0.3
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.
38.41%
0.29
33.74%
S&P 500
16.41%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
4.34%
EBIT Growth (5y)
11.69%
EBIT to Interest (avg)
4.27
Debt to EBITDA (avg)
2.93
Net Debt to Equity (avg)
0.45
Sales to Capital Employed (avg)
0.79
Tax Ratio
13.84%
Dividend Payout Ratio
49.73%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
6.41%
ROE (avg)
6.47%
Valuation Key Factors 
Factor
Value
P/E Ratio
76
Industry P/E
Price to Book Value
6.67
EV to EBIT
55.68
EV to EBITDA
32.23
EV to Capital Employed
4.26
EV to Sales
4.94
PEG Ratio
NA
Dividend Yield
0.67%
ROCE (Latest)
7.65%
ROE (Latest)
8.79%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Movement
5What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 7.12
INVENTORY TURNOVER RATIO(HY)
Highest at 4.3 times
NET SALES(Q)
Highest at USD 486.8 MM
EPS(Q)
Highest at USD 0.6
-17What is not working for the Company
NET PROFIT(HY)
At USD 56.57 MM has Grown at -40.88%
INTEREST COVERAGE RATIO(Q)
Lowest at 618.1
OPERATING CASH FLOW(Y)
Lowest at USD 230.5 MM
RAW MATERIAL COST(Y)
Grown by 18.11% (YoY
CASH AND EQV(HY)
Lowest at USD 161.5 MM
DEBT-EQUITY RATIO
(HY)
Highest at 75.77 %
INTEREST(Q)
Highest at USD 11.6 MM
Here's what is working for Hexcel Corp.
Dividend per share
Highest at USD 7.12 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 486.8 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
EPS
Highest at USD 0.6
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 4.3 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Hexcel Corp.
Interest Coverage Ratio
Lowest at 618.1 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At USD 56.57 MM has Grown at -40.88%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
At USD 11.6 MM has Grown at 26.09%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD 230.5 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
Highest at USD 11.6 MM
in the last five periods and Increased by 26.09% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 161.5 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 75.77 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 18.11% (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






