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HexcelHXL +0.28%86 5-Year Yield-on-Cost % is 0.65 as of Jul. 29, 2026, which is 18% below its 10-year median of 0.79. GuruFocus rates HXL with a GF Score™ of 86/100 and a GF Value™ of $81.03 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 172 Aerospace & Defense companies, Hexcel ranks worse than 65.12% on this metric.
Hexcel's yield on cost for the quarter that ended in Mar. 2026 was 0.65.
The historical rank and industry rank for Hexcel's 5-Year Yield-on-Cost % or its related term are showing as below:
HXL'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.17 Med: 0.79 Max: 2.38
Current: 0.65
During the past 13 years, Hexcel's highest Yield on Cost was 2.38. The lowest was 0.17. And the median was 0.79.
HXL's 5-Year Yield-on-Cost % is ranked worse than 65.12% of 172
companies
in the Aerospace & Defense industry
Industry Median: 1.025
vs HXL: 0.65
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Hexcel 5-Year Yield-on-Cost % Related Terms
HXL vs KTOS, AVAV, PL: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, Hexcel's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Hexcel's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Hexcel's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Hexcel is calculated as
Hexcel (HXL) has a 5-Year Yield-on-Cost % of 0.65 as of Jul. 29, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Hexcel and its competitors. This is 18% below median its historical median of 0.79. Over the past decade, Hexcel's 5-Year Yield-on-Cost % has ranged from 0.17 to 2.38. According to the industry distribution chart, Hexcel ranks #112 out of 172 companies in the Aerospace & Defense industry, placing it in the top 65.1%.
Is Hexcel's 5-Year Yield-on-Cost % too high?
Hexcel's current 5-Year Yield-on-Cost % of 0.65 is 18% below median its 10-year median of 0.79. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 2.38. The Aerospace & Defense industry median 5-Year Yield-on-Cost % is 1.03. Hexcel's value of 0.65 is 36.6% below this industry median. Based on the distribution chart, Hexcel ranks #112 out of 172 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Hexcel has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hexcel's 5-Year Yield-on-Cost % compare to KTOS and AVAV?
According to the Aerospace & Defense industry distribution chart, Hexcel ranks #112 out of 172 companies for 5-Year Yield-on-Cost %. This places Hexcel in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 1.03. Hexcel's value of 0.65 is 36.6% below this benchmark. Historically, Hexcel's own 5-Year Yield-on-Cost % has ranged from 0.17 to 2.38 over the past decade. While the company's 10-year median is 0.79 vs. the industry median of 1.03, Hexcel has consistently been below 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 5-Year Yield-on-Cost % for an Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.03, based on 172 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hexcel's current 5-Year Yield-on-Cost % of 0.65 is 36.6% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Hexcel and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hexcel's current 5-Year Yield-on-Cost % is 0.65, which is 18% below median its own 10-year median of 0.79. 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 (HXL) is currently considered Significantly Overvalued. The stock's GF Value™ is $81.03, compared to a current price of $110.03 — trading 35.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.65, which is 18% below median its 10-year median of 0.79 and 36.6% below the Aerospace & Defense industry median of 1.03. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Hexcel (HXL), the current 5-Year Yield-on-Cost % is 0.65 as of Jul. 29, 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 (HXL) Overvalued in 2026?
Based on GuruFocus' analysis, Hexcel stock appears to be overvalued.
The current stock price of $110.03 is trading 35.8% above its estimated GF Value™ of $81.03.
GuruFocus considers Hexcel to be Significantly Overvalued.
Key valuation signals for HXL:
5-Year Yield-on-Cost %: 0.65 (18% below median its 10-year median of 0.79)
GF Value™: $81.03 vs. price of $110.03 (35.8% above fair value)
Industry Position: 36.6% below the Aerospace & Defense median (#112 of 172)
No single metric tells the full story. See the 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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