Hexcel (HXL) AI Stock Analysis

• Market Cap: $6.05B
• Dividend Yield: 0.89%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 90.1
• Beta (1Y): 1.18
• Revenue Growth: -0.37%
• EPS Growth: -34.97%
• Country: US
• Employees: 5,894
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.37
• Shares Outstanding: 79,605,870
• 10 Day Avg. Volume: 1,601,847
• 30 Day Avg. Volume: 1,194,810
• PEG Ratio: 1.36
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 2.71
• P/FCF Ratio: 25.43
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 13.19
• Enterprise Value/Ebitda: 23.67
• 1Y Price Target: $74.88
• Price Target Upside: -2.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.74
• Revenue Forecast (FY): $1.89B

• Rating: 73 Outperform
• Price Target: $88.00 ▲(15.06% Upside)

Hexcel's overall stock score reflects a stable financial position with strong cash flow management and a solid balance sheet. The technical analysis indicates strong bullish momentum, which is a significant positive factor. However, the high P/E ratio suggests overvaluation, and recent revenue declines pose a risk to future profitability. The earnings call highlights both growth opportunities and near-term challenges, contributing to a balanced outlook.

Positive Factors

Strong Cash Flow Management

Hexcel's robust cash flow management supports its financial stability, enabling strategic investments and shareholder returns over the long term.

Defense and Space Segment Growth

Growth in the Defense and Space segment highlights Hexcel's strong market position and potential for sustained revenue in a stable industry.

Positive Aerospace Market Outlook

A growing backlog in commercial aircraft indicates strong future demand, supporting Hexcel's long-term revenue prospects in aerospace materials.

Negative Factors

Revenue Decline

The significant decline in revenue growth poses a risk to Hexcel's future profitability and may challenge its ability to sustain financial health.

Gross Margin Decline

Declining gross margins due to tariffs and inventory issues could pressure profitability, affecting Hexcel's long-term financial performance.

CFO Resignation

Leadership changes, such as the CFO's resignation, can disrupt strategic continuity and impact investor confidence in Hexcel's management stability.

Hexcel Business Overview & Revenue Model

Company Description

Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. It operates through two segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in automotive, marine, and trains. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings. The company sells its products directly through its managers, product managers, and sales personnel, as well as through independent distributors and manufacturer representatives in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

Hexcel generates revenue primarily through the sale of its advanced composite materials and products. The company has a diversified revenue model that includes long-term contracts with major aerospace manufacturers, which provide a steady income stream. Key revenue streams include the supply of carbon fibers, prepregs, and honeycomb structures, particularly for commercial aerospace applications. Additionally, Hexcel benefits from partnerships with leading companies in the aerospace and automotive sectors, which enhance its market position and contribute to earnings. The demand for lightweight and durable materials in these industries, driven by the need for fuel efficiency and reduced emissions, further supports Hexcel's financial performance.

Hexcel Financial Statement Overview

Summary

Hexcel presents a stable financial profile with strengths in cash flow management and a solid balance sheet. However, the recent decline in revenue growth is a concern that could impact future profitability. The company maintains moderate leverage and profitability margins, but improving revenue growth will be crucial for sustaining long-term financial health.

Income Statement

Hexcel's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 43.2%, which is concerning. However, the company maintains a reasonable gross profit margin of 23.13% and a net profit margin of 3.68%. The EBIT and EBITDA margins are moderate at 6.40% and 11.23%, respectively. The annual data from previous years shows fluctuating revenue growth, with a peak in 2022. Overall, while profitability is stable, the recent revenue decline poses a risk.

Balance Sheet

Hexcel's balance sheet is relatively strong with a debt-to-equity ratio of 0.48, indicating moderate leverage. The return on equity (ROE) for the TTM is 4.45%, which is lower than previous years, suggesting a decrease in profitability. The equity ratio stands at 56.81%, reflecting a solid equity base. The company has managed its debt levels well over the years, maintaining a stable financial position.

Cash Flow

The cash flow statement reveals positive trends, with a TTM free cash flow growth rate of 13.59%. The operating cash flow to net income ratio is strong at 0.94, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 0.72, showing a healthy conversion of earnings into cash. Overall, Hexcel demonstrates robust cash flow management, supporting its financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.90B	1.79B	1.58B	1.32B	1.50B
Gross Profit	432.30M	469.80M	433.20M	357.10M	250.10M	239.70M
EBITDA	240.90M	310.10M	268.50M	312.20M	198.30M	155.00M
Net Income	68.80M	132.10M	105.70M	126.30M	16.10M	31.70M
Balance Sheet
Total Assets	2.76B	2.73B	2.92B	2.84B	2.82B	2.92B
Cash, Cash Equivalents and Short-Term Investments	90.50M	125.40M	227.00M	112.00M	127.70M	103.30M
Total Debt	757.90M	726.10M	728.90M	773.10M	823.30M	985.80M
Total Liabilities	1.19B	1.20B	1.20B	1.28B	1.33B	1.41B
Stockholders Equity	1.57B	1.53B	1.72B	1.55B	1.49B	1.51B
Cash Flow
Free Cash Flow	193.90M	202.90M	148.90M	96.80M	123.80M	213.70M
Operating Cash Flow	267.60M	289.90M	257.10M	173.10M	151.70M	264.30M
Investing Cash Flow	-76.40M	-87.00M	-50.70M	-54.60M	-27.90M	-50.60M
Financing Cash Flow	-199.40M	-301.70M	-92.60M	-130.00M	-96.80M	-178.50M

Hexcel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HXL, the sentiment is Positive. The current price of 76.48 is above the 20-day moving average (MA) of 75.14, above the 50-day MA of 71.35, and above the 200-day MA of 60.82, indicating a bullish trend. The MACD of 0.94 indicates Positive momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 69.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HXL.

Hexcel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMTM	74 Outperform	$7.28B	108.47	1.47%	―	―	―
HXL	73 Outperform	$6.05B	90.12	4.36%	0.89%	-0.37%	-34.97%
MOG.A	73 Outperform	$8.33B	34.27	12.09%	0.47%	7.11%	13.43%
ATRO	68 Neutral	$1.98B	-407.89	-1.72%	―	6.19%	52.10%
LOAR	68 Neutral	$6.53B	103.86	6.56%	―	25.38%	237.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPR	51 Neutral	$4.23B	-1.63	―	―	-1.31%	-78.19%

Hexcel Corporate Events

Hexcel Announces CFO Resignation and Interim Appointment

Hexcel Corporation has announced the resignation of its Executive Vice President and Chief Financial Officer, Patrick Winterlich, effective November 30, 2025. Michael C. Lenz has been appointed as the Interim Chief Financial Officer, effective upon Winterlich’s resignation, and will serve in this role while the company searches for a permanent successor. Lenz, who has a substantial background in financial leadership roles at FedEx Corp., will receive a base salary and a cash bonus for his interim role, with no pre-existing arrangements influencing his selection.

Hexcel Board Member Jeffrey Campbell to Step Down

On November 10, 2025, Jeffrey C. Campbell announced his decision not to seek reelection to Hexcel Corporation’s Board of Directors at the 2026 Annual Meeting. Campbell, who has been a board member since 2003 and the Lead Director since 2018, cited no disagreements with the company’s operations or policies as the reason for his decision.

Hexcel Announces $350 Million Share Buyback Program

On October 22, 2025, Hexcel Corporation announced a new share repurchase program, involving agreements with Bank of America and Goldman Sachs to buy back $350 million of its common stock. This initiative, approved by the Board, is part of a broader $600 million authorization for share repurchases, enhancing Hexcel’s capital return strategy and potentially impacting its stock market performance. The repurchase will be funded by borrowing $350 million under an existing revolving credit facility, with the final settlement expected by the first quarter of 2026.

Hexcel Announces $350 Million Accelerated Share Repurchase

Hexcel Corporation reported its third quarter 2025 results, showing net sales of $456 million, a slight decrease from the previous year. The company experienced a drop in commercial aerospace sales due to inventory destocking, particularly affecting the Airbus A350, while defense and space sales saw growth. Hexcel revised its 2025 guidance due to tariffs and announced a $350 million accelerated share repurchase. Looking forward, Hexcel anticipates benefiting from increased commercial aerospace orders and expects to generate over $1 billion in free cash flow over the next four years, with an additional $600 million authorized for stock repurchases.

Hexcel Announces CFO Resignation Effective November 2025

On October 20, 2025, Hexcel Corporation announced the resignation of its Executive Vice President and Chief Financial Officer, Patrick Winterlich, effective November 30, 2025. The resignation was amicable and not due to any disagreements with the company’s operations or policies. The Board of Directors has begun the search for a successor.