Hexcel Corp

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HXL : NYSE : Industrial Goods
$43.17 | %
Today's Range: 42.01 - 43.21
Avg. Daily Volume: 575,900
07/29/16 - 4:02 PM ET

Financial Analysis


HEXCEL CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. HEXCEL CORP has average liquidity. Currently, the Quick Ratio is 1.21 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.75% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)522.6475.7
EBITDA ($mil)123.4109.5
EBIT ($mil)100.190.6
Net Income ($mil)66.161.7


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)38.935.3
Total Assets ($mil)2369.62200.1
Total Debt ($mil)707.6508.0
Equity ($mil)1225.11247.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin33.2233.21
EBITDA Margin23.6123.01
Operating Margin19.1519.05
Sales Turnover0.820.85
Return on Assets9.6810.84
Return on Equity18.7319.12
Debt Q2 FY16 Q2 FY15
Current Ratio2.522.68
Debt/Capital0.370.29
Interest Expense5.72.5
Interest Coverage17.5636.24


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)92.596.4
Div / share0.110.1
EPS0.70.63
Book value / share13.2412.94
Institutional Own % n/a n/a
Avg Daily Volume577650.0606869.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.96 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 3.39 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 9.94. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, HEXCEL CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HXL 18.68 Peers 20.96   HXL 10.79 Peers 16.97

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

HXL is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HXL is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HXL 15.79 Peers 18.28   HXL 7.62 Peers 2.24

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

HXL is trading at a valuation on par with its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HXL trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HXL 3.39 Peers 9.94   HXL -1.64 Peers 3.18

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HXL is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, HXL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HXL 2.14 Peers 1.67   HXL 3.35 Peers 6.23

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HXL is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HXL significantly trails its peers on the basis of sales growth

 

 

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