Hexcel Corporation logo

Hexcel Corporation(HXL)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$91.32
10/20/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
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  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for HXL

10/20/2026: HXL (1-star) is currently NOT-A-BUY. Pass it for now.

Hexcel Corporation is a specialized manufacturer of high-performance composite materials, serving as a critical partner to the global aerospace and defense industries. The company's strength lies in its proprietary carbon fiber and honeycomb technologies, which are essential for creating the lightweight, fuel-efficient aircraft favored by modern airlines. While it holds a leading position in these niche markets, Hexcel faces risks from customer concentration and cyclical aerospace production rates. The investment story centers on the increasing adoption of composites in next-generation aircraft. The stock may suit investors seeking long-term exposure to aerospace growth, though they should carefully monitor OEM production schedules and input cost volatility.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitThe company benefits from long-term secular growth trends in aircraft composite adoption.
Momentum investorMixed fitMomentum depends on the broader aerospace sector's recovery and upward trends in aircraft delivery rates.
Value investorMixed fitValuation is often tied to aerospace cycle expectations rather than traditional low-multiple metrics.
Dividend investorWeak fitCapital is primarily allocated toward R&D and manufacturing capacity rather than significant dividend yield.
Low-risk investorWeak fitExposure to aerospace cycles and high customer concentration introduces meaningful cyclical risk.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock price is sensitive to changes in aerospace production forecasts and global economic health.
Valuation riskMediumMarket pricing often reflects long-term optimistic growth scenarios in commercial aerospace.
Competition risk (Materials industry)Medium / highSignificant global competitors possess deep financial resources and extensive materials portfolios.
Business qualityStrongThe company provides critical, high-barrier-to-entry components for essential aerospace infrastructure.
Dividend incomeLowIncome is not a primary objective of the company's capital allocation strategy.
Execution riskMediumSuccessfully ramping up production to meet OEM demand requires complex manufacturing and supply chain precision.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit -2.65%
Avg. Invested days 44
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/20/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
HXL receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
HXL has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, strong cash generation (FCF margin 16.2%) is partially offset by negative earnings growth (-17.2%), slightly negative revenue growth (-0.5%), soft profitability (net margin 5.8%).

Financial Health Rating

★★★★★
HXL's financial health is supported by solid cash strength, including free-cash-flow generation (16.2% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is HXL's strongest growth driver at +51.4% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (-0.5%, slightly negative) and earnings growth (-17.2%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 115.3% and approximately 99.0% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.96%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 18.80%
T. Rowe Price Associates, Inc. 7.75%
Earnest Partners LLC 6.06%
State Street Corp 5.78%
Vanguard Capital Management, LLC 4.50%

Unit Economics (Per $1K Revenue)

★★★★★
HXL generates approximately $230 of gross profit, $91 of operating income, and $162 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Moderate margins and strong cash conversion support a 3-star rating, while capital efficiency is soft.

Economic Dimensions

★★★★★
Effective Tax Rate: 18.96%

Quantitative Style Profile

★★★★★
HXL has a high-quality, liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Quality TiltSmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 6.91B USD
Price to earnings Ratio 46.12
1Y Target Price 104.47
Price to earnings Ratio 46.12
1Y Target Price 104.47
Volume (30-day avg) 955.0K shares
Beta 1.1
52 Weeks Range 62.70 - 111.55
Updated Date 10/20/2026
52 Weeks Range 62.70 - 111.55
Updated Date 10/20/2026
Dividends yield (FY) 0.76%
Basic EPS (TTM) 1.98

How Company Makes Money

Business areaWhat it includesRetail investor read
Commercial AerospaceAdvanced materials for commercial aircraft structures and engines.This is the primary revenue engine, heavily dependent on global aircraft production volumes.
Space & DefenseSpecialized composites for military aircraft, space vehicles, and satellite structures.This segment provides relative stability through long-term government and defense contracts.
IndustrialComposites for wind energy, automotive, and other high-performance applications.A smaller, diversified segment providing exposure to non-aerospace high-performance markets.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Earnings Date

Report Date 2026-10-21
When After Market
Estimate 0.49
Actual -

Profitability

Profit Margin 7.76%
Operating Margin (TTM) 13.9%

Management Effectiveness

Return on Assets (TTM) 5.98%
Return on Equity (TTM) 10.76%

Valuation

Trailing PE 46.12
Forward PE 20.33
Enterprise Value 7.40B
Price to Sales(TTM) 3.49
Enterprise Value 7.40B
Price to Sales(TTM) 3.49
Enterprise Value to Revenue 3.74
Enterprise Value to EBITDA 21.13
Shares Outstanding 75.62M
Shares Floating 74.83M
Shares Outstanding 75.62M
Shares Floating 74.83M
Percent Insiders 0.96
Percent Institutions 115.28

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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