Hexcel Corporation
Find Ratings ReportsHEXCEL CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. HEXCEL CORP has strong liquidity. Currently, the Quick Ratio is 1.54 which shows 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 10.44% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 457.5 | 429.4 |
EBITDA ($mil) | 80.7 | 77.9 |
EBIT ($mil) | 49.1 | 46.6 |
Net Income ($mil) | -18.2 | 37.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 227.0 | 112.0 |
Total Assets ($mil) | 2918.5 | 2837.3 |
Total Debt ($mil) | 728.9 | 773.1 |
Equity ($mil) | 1716.5 | 1554.2 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 29.44 | 30.37 |
EBITDA Margin | 17.63 | 18.14 |
Operating Margin | 10.73 | 10.85 |
Sales Turnover | 0.61 | 0.56 |
Return on Assets | 3.62 | 4.45 |
Return on Equity | 6.16 | 8.13 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.74 | 2.23 |
Debt/Capital | 0.3 | 0.33 |
Interest Expense | 7.6 | 9.2 |
Interest Coverage | 6.46 | 5.07 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 84.1 | 84.2 |
Div / share | 0.13 | 0.1 |
EPS | -0.21 | 0.43 |
Book value / share | 20.41 | 18.46 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 703111.0 | 534094.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.49 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, HEXCEL CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
HXL 57.52 | Peers 85.83 | HXL 23.33 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. HXL is trading at a significant 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 |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
HXL 23.62 | Peers 18.08 | HXL 0.71 | Peers 1.16 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. HXL is trading at a significant premium to its peers. |
Discount. 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 discount to its peers. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
HXL 3.49 | Peers 19.07 | HXL -16.22 | Peers 12.58 | |||||||||||||||||||||
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 |
|
Sales Growth |
|
|||||||||||||||||||||
HXL 3.35 | Peers 84.44 | HXL 13.39 | Peers 42.35 | |||||||||||||||||||||
Discount. 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 discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. HXL significantly trails its peers on the basis of sales growth. |
|||||||||||||||||||||||