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HexcelFRA:HXL +2.39%86 Return-on-Tangible-Equity is 14.68% as of Mar. 2026, which is 49% above its 10-year median of 9.82. GuruFocus rates FRA:HXL with a GF Score™ of 86/100 and a GF Value™ of €70.05 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 335 Aerospace & Defense companies, Hexcel ranks better than 54.33% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Hexcel's annualized net income for the quarter that ended in Mar. 2026 was €129 Mil. Hexcel's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €877 Mil. Therefore, Hexcel's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.68%.
The historical rank and industry rank for Hexcel's Return-on-Tangible-Equity or its related term are showing as below:
FRA:HXL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.31 Med: 9.82 Max: 26.14
Current: 9.86
During the past 13 years, Hexcel's highest Return-on-Tangible-Equity was 26.14%. The lowest was 1.31%. And the median was 9.82%.
FRA:HXL's Return-on-Tangible-Equity is ranked better than 54.33% of 335
companies
in the Aerospace & Defense industry
Industry Median: 8.1
vs FRA:HXL: 9.86
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Hexcel Return-on-Tangible-Equity Related Terms
Hexcel Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hexcel's Return-on-Tangible-Equity can be seen below:
* 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.
FRA:HXL vs LOAR, AVAV, DPC: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Hexcel's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Hexcel's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hexcel's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.68% mean?
Hexcel (FRA:HXL) has a Return-on-Tangible-Equity of 14.68% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hexcel and its competitors. This is 49% above median its historical median of 9.82. Over the past decade, Hexcel's Return-on-Tangible-Equity has ranged from 1.31 to 26.14. According to the industry distribution chart, Hexcel ranks #153 out of 335 companies in the Aerospace & Defense industry, placing it in the top 45.7%.
Is Hexcel's Return-on-Tangible-Equity too high?
Hexcel's current Return-on-Tangible-Equity of 14.68% is 49% above median its 10-year median of 9.82. Over the past 10 years, this metric has ranged from a low of 1.31 to a high of 26.14. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.10. Hexcel's value of 14.68% is 81.2% above this industry median. Based on the distribution chart, Hexcel ranks #153 out of 335 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Hexcel has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hexcel's Return-on-Tangible-Equity compare to LOAR and AVAV?
According to the Aerospace & Defense industry distribution chart, Hexcel ranks #153 out of 335 companies for Return-on-Tangible-Equity. This puts Hexcel in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.10. Hexcel's value of 14.68% is 81.2% above this benchmark. Historically, Hexcel's own Return-on-Tangible-Equity has ranged from 1.31 to 26.14 over the past decade. While the company's 10-year median is 9.82 vs. the industry median of 8.10, Hexcel has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.10, based on 335 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hexcel's current Return-on-Tangible-Equity of 14.68% is 81.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hexcel and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hexcel's current Return-on-Tangible-Equity is 14.68%, which is 49% above median its own 10-year median of 9.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hexcel stock overvalued right now?
Based on GuruFocus' analysis, Hexcel (FRA:HXL) is currently considered Modestly Overvalued. The stock's GF Value™ is €70.05, compared to a current price of €90.08 — trading 28.6% above its estimated fair value. The current Return-on-Tangible-Equity is 14.68%, which is 49% above median its 10-year median of 9.82 and 81.2% above the Aerospace & Defense industry median of 8.10. Hexcel's overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Hexcel (FRA:HXL), the current Return-on-Tangible-Equity is 14.68% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hexcel (FRA:HXL) Overvalued in 2026?
Based on GuruFocus' analysis, Hexcel stock appears to be overvalued.
The current stock price of €90.08 is trading 28.6% above its estimated GF Value™ of €70.05.
GuruFocus considers Hexcel to be Modestly Overvalued.
Key valuation signals for FRA:HXL:
Return-on-Tangible-Equity: 14.68% (49% above median its 10-year median of 9.82)
GF Value™: €70.05 vs. price of €90.08 (28.6% above fair value)
Industry Position: 81.2% above the Aerospace & Defense median (#153 of 335)
No single metric tells the full story. See the FRA:HXL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1948, Hexcel designs and manufactures a range of highly engineered composite fibers, fabrics, resins, and structures for use primarily in the commercial aerospace and defense markets. These are lighter than metal and perform under rigorous conditions in aircraft frames, wings, engine nacelles, and other structures 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 (40% of 2024 sales) and Boeing (15% of 2024 sales; 25% before the pandemic) and their respective subcontractors.
86GF Score
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