Hexcel (HXL) AI Stock Analysis

• Market Cap: $4.72B
• Dividend Yield: 1.16%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 38.7
• Beta (1Y): 1.17
• Revenue Growth: 5.37%
• EPS Growth: 29.15%
• Country: US
• Employees: 5,894
• Sector: Industrials
• Sector Strength: 89
• Industry: Aerospace & Defense
• EPS (TTM): 0.37
• Shares Outstanding: 80,411,285
• 10 Day Avg. Volume: 826,673
• 30 Day Avg. Volume: 1,104,774
• PEG Ratio: -7.76
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.88
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 12.07
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: $57.44
• Price Target Upside: -2.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: $60.00 ▲(1.75%Upside)

Hexcel's overall score reflects solid financial performance with strong profitability and cash flow generation. Technical indicators and valuation suggest cautious optimism, while recent earnings call and corporate events highlight strategic challenges and shareholder support.

Positive Factors

Future Outlook

Management remains optimistic in their outlook for the A350 as Airbus is still expecting to ramp to 12/mo by 2028.

Management Strategy

HXL is more actively working to manage through the issues with headcount reductions that align with current builds, buybacks, and reduced capex.

Negative Factors

Financial Performance

HXL reported $0.37, missing the consensus of $0.43, with weaker-than-expected results in the Commercial segment.

Production Challenges

Airbus cites intensifying bottlenecks on the A350s 'Section 15' subassembly, which are affecting production rates.

Supply Chain Issues

The supply chain issues across the aerospace industry have negatively impacted HXL's earnings again.

Hexcel Business Overview & Revenue Model

Company Description

Hexcel Corporation (HXL) is a global leader in advanced composites technology. The company develops, manufactures, and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, and other specialty materials. Hexcel serves various industries, primarily focusing on aerospace, defense, industrial, and wind energy sectors, enabling its customers to enhance performance and efficiency while reducing weight and emissions.

How the Company Makes Money

Hexcel Corporation generates revenue through the sale of its advanced composite materials, primarily targeting the aerospace and defense sectors, which are its largest markets. The company supplies carbon fiber, prepregs, and other composite materials to major aircraft manufacturers, such as Boeing and Airbus, for use in commercial and military aircraft. Additionally, Hexcel serves the wind energy sector by providing lightweight materials that improve the efficiency of wind turbines. The industrial sector also contributes to its revenue stream, with sales of materials used in automotive, sporting goods, and other applications. Partnerships with leading aerospace companies and long-term supply agreements further bolster Hexcel's revenue, as these relationships ensure a steady demand for its products.

Hexcel Financial Statement Overview

Summary

Hexcel demonstrates strong profitability and a stable financial position, with efficient cash flow generation. The lack of revenue growth and slight decline in free cash flow could pose challenges. The company maintains balanced leverage, ensuring financial stability.

Income Statement

Hexcel shows solid profitability with a stable gross profit margin of 24.0% for TTM (Trailing-Twelve-Months) and a net profit margin of 6.6%. However, the revenue has slightly decreased to $1.89 billion from $1.90 billion, showing a stagnant growth rate. The EBIT margin is healthy at 9.3%, indicating efficient core operations. Overall, the company displays good profitability metrics, but revenue growth is a concern.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.51, indicating moderate leverage. The equity ratio stands at 55.2%, suggesting a sound capital structure. ROE is 8.1% for TTM, demonstrating decent return for shareholders. Stability is evident, but the company should monitor its leverage to maintain financial flexibility.

Cash Flow

Free cash flow has decreased slightly to $184 million from $202.9 million, showing a decline in growth. However, the operating cash flow to net income ratio is robust at 2.15, indicating strong cash earnings. Free cash flow to net income ratio at 1.48 further underscores efficient cash generation. Overall, Hexcel maintains a strong cash flow position despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.89B	1.90B	1.79B	1.58B	1.32B	1.50B
Gross Profit	452.20M	469.80M	433.20M	357.10M	250.10M	239.70M
EBITDA	267.60M	310.10M	268.50M	312.20M	198.30M	14.10M
Net Income	124.50M	132.10M	105.70M	126.30M	16.10M	31.70M
Balance Sheet
Total Assets	2.78B	2.73B	2.92B	2.84B	2.82B	2.92B
Cash, Cash Equivalents and Short-Term Investments	89.20M	125.40M	227.00M	112.00M	127.70M	103.30M
Total Debt	787.20M	700.70M	699.50M	723.50M	823.30M	926.40M
Total Liabilities	1.25B	1.20B	1.20B	1.28B	1.33B	1.41B
Stockholders Equity	1.53B	1.53B	1.72B	1.55B	1.49B	1.51B
Cash Flow
Free Cash Flow	184.00M	202.90M	148.90M	96.80M	123.80M	213.70M
Operating Cash Flow	268.40M	289.90M	257.10M	173.10M	151.70M	264.30M
Investing Cash Flow	-85.50M	-87.00M	-50.70M	-54.60M	-27.90M	-50.60M
Financing Cash Flow	-179.20M	-301.70M	-92.60M	-130.00M	-96.80M	-178.50M

Hexcel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 58.97 is above the 20-day moving average (MA) of 57.05, above the 50-day MA of 55.04, and above the 200-day MA of 58.94, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 64.07 is Neutral, neither overbought nor oversold. The STOCH value of 64.87 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
KTOS	76 Outperform	$8.51B	429.77	1.45%	―	7.32%	―
MOG.A	73 Outperform	$5.84B	28.48	11.61%	0.63%	4.50%	9.90%
HXL	68 Neutral	$4.72B	38.73	7.87%	1.16%	5.37%	29.15%
VSEC	68 Neutral	$2.59B	158.34	4.83%	0.32%	19.84%	-51.67%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%
SPR	60 Neutral	$4.76B	―	81.63%	―	-2.91%	-109.95%
MRCY	58 Neutral	$3.06B	―	-4.45%	―	5.66%	52.71%

Hexcel Corporate Events

Hexcel Announces Leadership Transition Plans

On July 7, 2025, Hexcel Corporation announced that Thierry Merlot, President of Aerospace – EMEA/AP & Industrial, plans to retire in 2026. In preparation, he will transition to Executive Vice President – Strategy by September 29, 2025, with a successor expected to be appointed around the same date.

The most recent analyst rating on (HXL) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Hexcel stock, see the HXL Stock Forecast page.

Hexcel Stockholders Approve Key Proposals at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 8, 2025, Hexcel Corporation’s stockholders elected all nominated directors, approved executive compensation for 2024, ratified Ernst & Young LLP as the independent auditor for 2025, and approved amendments to the 2016 Employee Stock Purchase Plan. These decisions reflect strong shareholder support for the company’s leadership and strategic initiatives, potentially enhancing its operational stability and market position.

The most recent analyst rating on (HXL) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Hexcel stock, see the HXL Stock Forecast page.

Hexcel Revises 2025 Guidance Amid Supply Chain Delays

Hexcel Corporation reported a decrease in first quarter 2025 sales to $457 million, down 3.3% from the previous year, with adjusted diluted EPS also declining. The company revised its 2025 guidance due to supply chain delays affecting aircraft production, particularly the Airbus A350, and is managing costs by reducing headcount. Despite challenges in commercial aerospace, Hexcel saw growth in its Defense and Space segment and maintained confidence in its long-term prospects, evidenced by share repurchases and debt refinancing.