Skip to Content

Hexcel Corp HXL

Morningstar Rating
$61.90 +0.10 (0.16%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Hexcel: New CEO Has a Tough Job but Not an Impossible One

We aren't adjusting our moat rating or forecasts as a result of narrow-moat Hexcel's replacement of Nick Stanage as president and CEO by Thomas Gentile, effective May 1, 2024. Stanage is set to continue as chairman until his retirement at the end of the year. From 2016 until he was replaced by a member of the board and former Boeing executive Pat Shanahan in October of 2023, Gentile served as president and CEO of Spirit AeroSystems.

Price vs Fair Value

HXL is trading at a 2% discount.
Price
$61.90
Fair Value
$94.00
Uncertainty
Medium
1-Star Price
$75.74
5-Star Price
$39.30
Economic Moat
Lydznk
Capital Allocation
Qzjgnytxx

Bulls Say, Bears Say

Bulls

Commercial aerospace manufacturing has a highly visible revenue runway from increasing flights per capita, despite COVID-19, as middle-class demand in emerging markets grows.

Bears

More than half of 2019 commercial revenue came from wide-body production, which fell 60% by 2021, and we do not expect it to return to 2019 levels until 2029.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if HXL is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$61.80
Day Range
$61.4262.44
52-Week Range
$58.8179.08
Bid/Ask
$60.02 / $64.02
Market Cap
$5.14 Bil
Volume/Avg
2 / 860,201

Key Statistics

Price/Earnings (Normalized)
34.14
Price/Sales
2.95
Dividend Yield (Trailing)
0.85%
Dividend Yield (Forward)
0.85%
Total Yield
1.44%

Company Profile

Founded in 1948, Hexcel designs and manufactures a range of high-performance composite fibers, fabrics, resins, and structures for use in commercial aerospace, defense, and other industrial markets. These are engineered to be lighter than metal and perform under rigorous conditions in aircraft frames, wings, engines, and other components and subassemblies. The company's name derives from the six-sided honeycomb structures that lend many of its products their light weight and rigidity. Hexcel's biggest customers are Airbus (38% of 2022 sales) and Boeing (25% of prepandemic sales) and its respective subcontractors.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Small Growth
Total Number of Employees
5,590

Competitors

Valuation

Metric
HXL
BA.
SPR
Price/Earnings (Normalized)
34.1419.47
Price/Book Value
3.033.67
Price/Sales
2.951.700.59
Price/Cash Flow
18.7017.21
Price/Earnings
HXL
BA.
SPR

Financial Strength

Metric
HXL
BA.
SPR
Quick Ratio
1.540.860.88
Current Ratio
2.741.081.71
Interest Coverage
4.237.35−0.90
Quick Ratio
HXL
BA.
SPR

Profitability

Metric
HXL
BA.
SPR
Return on Assets (Normalized)
5.36%6.08%−8.54%
Return on Equity (Normalized)
9.43%17.75%
Return on Invested Capital (Normalized)
7.76%11.67%−9.41%
Return on Assets
HXL
BA.
SPR
See how this stock stacks up to its competitors with Morningstar Investor

Aerospace & Defense Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
GE
GE AerospaceNwgldhlwjKnm$170.2 Bil
EADSY
Airbus SE ADRShfmrfblrXmwt$134.0 Bil
RTX
RTX CorpNhqtdgwxpTvyl$134.0 Bil
LMT
Lockheed Martin CorpSbdtbpsvQjcr$109.3 Bil
BA
Boeing CoVfsrgyygVzyj$104.4 Bil
GD
General Dynamics CorpNqwyvlndxkDyky$78.3 Bil
TDG
TransDigm Group IncBmmsgsktgWpwf$68.2 Bil
NOC
Northrop Grumman CorpCvmdgtfxtRvwj$67.0 Bil
BAESY
BAE Systems PLC ADRQwbbdxwSqpsm$49.7 Bil
RYCEY
Rolls-Royce Holdings PLC ADRHcfchmvqrHxshcyc$42.0 Bil

Sponsor Center