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HXL (Hexcel) Financial Strength : 6 (As of Mar. 2025)


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What is Hexcel Financial Strength?

Hexcel has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Hexcel's Interest Coverage for the quarter that ended in Mar. 2025 was 5.67. Hexcel's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.43. As of today, Hexcel's Altman Z-Score is 4.45.


Competitive Comparison of Hexcel's Financial Strength

For the Aerospace & Defense subindustry, Hexcel's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hexcel's Financial Strength Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Hexcel's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hexcel's Financial Strength falls into.


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Hexcel Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Hexcel's Interest Expense for the months ended in Mar. 2025 was $-8 Mil. Its Operating Income for the months ended in Mar. 2025 was $44 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $787 Mil.

Hexcel's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*44.2/-7.8
=5.67

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Hexcel's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.1 + 787.1) / 1826
=0.43

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Hexcel has a Z-score of 4.45, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.45 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Hexcel  (NYSE:HXL) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Hexcel has the Financial Strength Rank of 6.


Hexcel Financial Strength Related Terms

Thank you for viewing the detailed overview of Hexcel's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Hexcel Business Description

Traded in Other Exchanges
Address
281 Tresser Boulevard, Two Stamford Plaza, 16th Floor, Stamford, CT, USA, 06901
Founded in 1948, Hexcel designs and manufactures a range of highly engineered composite fibers, fabrics, resins, and structures for use in the commercial aerospace, defense, and high-performance automotive markets. These are lighter than metal and perform under rigorous conditions in aircraft frames, wings, engines, and other components and subassemblies. The company's name derives from the six-sided honeycomb structures that lend many of its products their light weight and rigidity. Hexcel's biggest customers are Airbus (38% of 2022 sales) and Boeing (25% of prepandemic sales) and their respective subcontractors.
Executives
Thierry Merlot officer: See Remarks C/O HEXCEL CORPORATION, 281 TRESSER BLVD., STAMFORD CT 06901--326
Gail E Lehman officer: See Remarks 801 CRESCENT CENTRE DRIVE, SUITE 600, FRANKLIN TN 37067
Catherine A Suever director 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Guy C Hachey director 5725 DELPHI DRIVE, TROY MI 48098
Cynthia M Egnotovich director
Nick L Stanage officer: President 20807 DECATUR STREET, CASSOPOLIS MI 49031
Jeffrey C Campbell director 4333 AMON CARTER BLVD, FORT WORTH TX 76155
Gina Fitzsimons officer: See Remarks C/O HEXCEL CORPORATION, TWO STAMFORD PLAZA, 281 TRESSER BLVD., STAMFORD CT 06901
Marilyn Minus director C/O NORTHEASTERN UNIVERSITY, 360 HUNTINGTON AVENUE, MIE DEPT., 334SN, BOSTON MA 2115-5000
Philippe Chevrier officer: See Remarks C/O HEXCEL CORPORATION, TWO STAMFORD PLAZA, 281 TRESSER BLVD., STAMFORD CT 06901
Robert George Hennemuth officer: See Remarks C/O HEXCEL CORPORATION, 281 TRESSER BLVD. 16TH FLOOR, STAMFORD CT 06901
Amy S Evans officer: See Remarks 2701 SPRUCE STREET, QUINCY IL 62301
Kimberly A. Hendricks officer: SVP, Corp. Controller & CAO 521 WEST 57TH STREET, NEW YORK NY 10019
Brett Raymond Schneider officer: President - Global Fibers C/O HEXCEL CORPORATION, 281 TRESSER BLVD., 16TH FLOOR, STAMFORD CT 06901
Timothy Swords officer: President, Industrial C/O HEXCEL CORPORATION, 281 TRESSER BLVD., STAMFORD CT 06901-3261