Hexcel Corp

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HXL : NYSE : Industrial Goods
$51.76 | %
Today's Range: 51.2528 - 51.88
Avg. Daily Volume: 600100.0
12/02/16 - 4:03 PM ET

Financial Analysis


HEXCEL CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. HEXCEL CORP has average liquidity. Currently, the Quick Ratio is 1.09 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 increased by 5.36% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)500.5448.8
EBITDA ($mil)112.697.3
EBIT ($mil)89.178.0
Net Income ($mil)68.253.5


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)45.743.2
Total Assets ($mil)2390.62240.7
Total Debt ($mil)674.9596.4
Equity ($mil)1259.41195.3


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin31.8131.95
EBITDA Margin22.4921.68
Operating Margin17.817.38
Sales Turnover0.830.83
Return on Assets10.2110.54
Return on Equity19.3919.76
Debt Q3 FY16 Q3 FY15
Current Ratio2.322.62
Debt/Capital0.350.33
Interest Expense5.54.6
Interest Coverage16.216.96


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)91.994.5
Div / share0.110.1
EPS0.720.55
Book value / share13.712.65
Institutional Own % n/a n/a
Avg Daily Volume562508.0586766.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.08 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 3.51 indicates a premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 15.57. The price-to-sales ratio is above the S&P 500 average and well above 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 18.74 Peers 22.08   HXL 10.47 Peers 15.86

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 17.20 Peers 20.20   HXL 3.66 Peers 1.97

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 3.51 Peers 15.57   HXL 6.19 Peers 161.72

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 2.23 Peers 1.58   HXL 6.29 Peers 3.89

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

HXL has a sales growth rate that significantly exceeds its peers.

 

 

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