Hexcel (HXL) Hits New Lifetime High Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Hexcel as such a stock due to the following factors:
- HXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.0 million.
- HXL has traded 8,470 shares today.
- HXL is trading at a new lifetime high.
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More details on HXL:
Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets in the United States and internationally. The stock currently has a dividend yield of 0.8%. HXL has a PE ratio of 23.4. Currently there are 8 analysts that rate Hexcel a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Hexcel has been 547,300 shares per day over the past 30 days. Hexcel has a market cap of $4.7 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.05 and a short float of 3.4% with 7.22 days to cover. Shares are up 18.4% year-to-date as of the close of trading on Monday.
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Analysis:
rates Hexcel as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HEXCEL CORP has improved earnings per share by 17.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HEXCEL CORP increased its bottom line by earning $2.12 versus $1.85 in the prior year. This year, the market expects an improvement in earnings ($2.37 versus $2.12).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 12.3% when compared to the same quarter one year prior, going from $47.10 million to $52.90 million.
- Net operating cash flow has significantly increased by 63.89% to $126.20 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 20.78%.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Hexcel Ratings Report.
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