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
|
RTX
|
BA.
|
|---|---|---|---|
Price/Earnings (Normalized) | 36.14 | 19.54 | 20.78 |
Price/Book Value | 3.22 | 2.22 | 3.92 |
Price/Sales | 2.99 | 1.99 | 1.82 |
Price/Cash Flow | 19.24 | 21.54 | 18.38 |
|
Metric
|
HXL
|
RTX
|
BA.
|
|---|---|---|---|
Quick Ratio | 1.54 | 0.64 | 0.86 |
Current Ratio | 2.74 | 1.07 | 1.08 |
Interest Coverage | 4.23 | 3.15 | 7.35 |
|
Metric
|
HXL
|
RTX
|
BA.
|
|---|---|---|---|
Return on Assets (Normalized) | 5.18% | 2.51% | 6.08% |
Return on Equity (Normalized) | 9.01% | 6.05% | 17.75% |
Return on Invested Capital (Normalized) | 7.39% | 5.17% | 11.67% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
GE
| GE Aerospace | Yfpnhfcnz | Hym | $174.3 Bil | |
EADSY
| Airbus SE ADR | Nwnffczvv | Vbs | $137.0 Bil | |
RTX
| RTX Corp | Hpzyhmbcg | Dkr | $134.3 Bil | |
LMT
| Lockheed Martin Corp | Zyzhmnxw | Nrswn | $110.4 Bil | |
BA
| Boeing Co | Sgqfxzqyh | Xcnk | $100.8 Bil | |
GD
| General Dynamics Corp | Cllkjxbnzw | Ymbtr | $80.3 Bil | |
NOC
| Northrop Grumman Corp | Nwmhzrzh | Ptlht | $70.3 Bil | |
TDG
| TransDigm Group Inc | Lyrkycnc | Pbzp | $69.0 Bil | |
BAESY
| BAE Systems PLC ADR | Qbgmybcf | Vdrw | $51.3 Bil | |
RYCEY
| Rolls-Royce Holdings PLC ADR | Lynwclrd | Dkqnkhg | $43.7 Bil |
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