With first-quarter 2024 results in hand, we have increased our fair value estimate for narrow-moat aerospace supplier Hexcel by $1 to $64 per share, primarily due to the time value of money.
Commercial aerospace manufacturing has a highly visible revenue runway from increasing flights per capita, despite covid, as middle-class demand in emerging markets grows.
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.
|
Metric
|
HXL
|
BA.
|
SPR
|
|---|---|---|---|
Price/Earnings (Normalized) | 41.13 | 20.56 | 442.71 |
Price/Book Value | 3.66 | 3.88 | — |
Price/Sales | 3.40 | 1.80 | 0.54 |
Price/Cash Flow | 21.90 | 18.18 | — |
|
Metric
|
HXL
|
BA.
|
SPR
|
|---|---|---|---|
Quick Ratio | 1.54 | 0.86 | 0.74 |
Current Ratio | 2.74 | 1.08 | 1.52 |
Interest Coverage | 4.23 | 7.35 | −1.84 |
|
Metric
|
HXL
|
BA.
|
SPR
|
|---|---|---|---|
Return on Assets (Normalized) | 5.18% | 6.08% | −13.90% |
Return on Equity (Normalized) | 9.01% | 17.75% | — |
Return on Invested Capital (Normalized) | 7.39% | 11.67% | −20.39% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GE
| GE Aerospace | Vkmtdrdmv | Kzb | $175.0 Bil | |
RTX
| RTX Corp | Cgdwpngtx | Lrd | $138.5 Bil | |
EADSY
| Airbus SE ADR | Vrvqmvbkf | Rkkr | $136.9 Bil | |
BA
| Boeing Co | Gsllctt | Mdlm | $113.5 Bil | |
LMT
| Lockheed Martin Corp | Jqnmwkzp | Thnyx | $111.9 Bil | |
GD
| General Dynamics Corp | Krtbkngyf | Hghn | $82.0 Bil | |
TDG
| TransDigm Group Inc | Xtlmsvdlsk | Qdvg | $72.3 Bil | |
NOC
| Northrop Grumman Corp | Nlyhllqbq | Cgjqq | $69.7 Bil | |
BAESY
| BAE Systems PLC ADR | Pcszxkws | Dpf | $52.4 Bil | |
RYCEY
| Rolls-Royce Holdings PLC ADR | Cfftypjp | Rdmmk | $44.9 Bil |
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