Hexcel Corporation Common Stock (HXL)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

In the Graham tradition, I want a business with durable advantages bought at a sensible price. Hexcel sells advanced composites into aerospace and defense, markets where certifications and long qualification cycles can create switching costs. The figures show a cyclical recovery: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $529.3M and net income $49.3M, versus $489.9M and $13.5M in fiscal Q2 2025. That is roughly 8% revenue growth and a large profit rebound. Fiscal Q1 2026 also showed $501.5M revenue and $37.2M net income. Yet the full-year picture is uneven: FY2025 revenue was $1.9B and net income $109.4M, below FY2024's $132.1M net income, though above FY2023's $105.7M. Financial health is acceptable. Debt-to-equity is 0.74, Altman Z-score 4.43, Piotroski 6/9, and trailing free cash flow is $255.6M, a 3.9% FCF yield. FairStock return metrics are only moderate: ROE 10.76% and ROCE 5.98%. At the 2026-10-13 close of $86.13, FairStock calculations put market cap at $6.5B, P/E at 43.5, P/B at 5.01, EV/EBITDA at 21.16, and Graham Number at $27.67, giving a negative margin of safety of -211.28%. The PEG of 0.16 reflects the recent profit surge, but the absolute multiple still demands a lot. FairStock's 36/100 score and Lynch STALWART label, steady profit growth with slower revenue, suggest a decent business that is not cheap. I would want a wider gap between price and intrinsic value before calling it attractive.

In plain English: Hexcel makes lightweight composite materials used in airplanes, defense and space equipment, and industrial products. The business is improving, because in the quarter ended 2026-06-30 sales and profit were higher than a year earlier, and its debt looks manageable. But the stock price looks expensive compared with the company's profits and assets, so it is not a bargain on the numbers shown.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer