Latest Ratios: P/E Ratio 73.1x · EV/EBITDA 28.8x · ROE 7.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.6B | $5.9B | $5.2B | $6.3B | $5.0B | $4.4B | $4.1B | $6.3B | $5.1B | $5.7B | $4.8B |
| Enterprise Value | $8.5B | $6.8B | $5.8B | $6.8B | $5.7B | $5.1B | $5.0B | $7.4B | $6.0B | $6.4B | $5.5B |
| P/E Ratio → | 73.07 | 53.94 | 39.43 | 59.48 | 39.50 | 272.63 | 127.61 | 20.54 | 18.44 | 20.02 | 19.41 |
| P/S Ratio | 3.99 | 3.12 | 2.73 | 3.52 | 3.17 | 3.31 | 2.71 | 2.67 | 2.33 | 2.88 | 2.42 |
| P/B Ratio | 6.40 | 4.73 | 3.41 | 3.67 | 3.22 | 2.95 | 2.70 | 4.35 | 3.86 | 3.80 | 3.89 |
| P/FCF | 24.58 | 19.24 | 25.65 | 42.35 | 51.68 | 35.40 | 19.06 | 21.92 | 21.51 | 37.74 | 65.93 |
| P/OCF | 32.76 | 25.65 | 17.95 | 24.53 | 28.90 | 28.89 | 15.41 | 12.81 | 12.11 | 13.26 | 12.07 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.61 | 3.05 | 3.81 | 3.59 | 3.83 | 3.30 | 3.12 | 2.75 | 3.26 | 2.74 |
| EV / EBITDA | 28.83 | 23.25 | 18.72 | 20.02 | 18.79 | 26.75 | 31.99 | 12.97 | 12.20 | 14.14 | 12.12 |
| EV / EBIT | 49.38 | 39.57 | 31.19 | 47.37 | 30.45 | 84.21 | 351.47 | 17.29 | 16.24 | 18.35 | 15.29 |
| EV / FCF | — | 22.25 | 28.61 | 45.72 | 58.51 | 41.02 | 23.19 | 25.62 | 25.40 | 42.72 | 74.82 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.0% | 23.0% | 24.7% | 24.2% | 22.6% | 18.9% | 16.0% | 27.2% | 26.5% | 28.0% | 28.2% |
| Operating Margin | 9.1% | 9.1% | 9.8% | 12.0% | 11.1% | 3.9% | 0.9% | 18.0% | 17.0% | 17.8% | 18.0% |
| Net Profit Margin | 5.8% | 5.8% | 6.9% | 5.9% | 8.0% | 1.2% | 2.1% | 13.0% | 12.6% | 14.4% | 12.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.9% | 7.9% | 8.1% | 6.5% | 8.3% | 1.1% | 2.1% | 22.2% | 19.6% | 20.7% | 20.6% |
| ROA | 4.0% | 4.0% | 4.7% | 3.7% | 4.5% | 0.6% | 1.0% | 10.3% | 9.9% | 11.0% | 10.9% |
| ROIC | 6.0% | 6.0% | 6.4% | 7.3% | 6.0% | 1.7% | 0.4% | 13.4% | 12.4% | 12.7% | 15.0% |
| ROCE | 7.2% | 7.2% | 7.5% | 8.4% | 6.9% | 2.0% | 0.5% | 16.0% | 14.8% | 15.1% | 17.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.79 | 0.79 | 0.48 | 0.42 | 0.50 | 0.55 | 0.65 | 0.78 | 0.72 | 0.54 | 0.55 |
| Debt / EBITDA | 3.38 | 3.38 | 2.34 | 2.14 | 2.57 | 4.34 | 6.36 | 1.99 | 1.94 | 1.78 | 1.52 |
| Net Debt / Equity | — | 0.74 | 0.39 | 0.29 | 0.43 | 0.47 | 0.58 | 0.73 | 0.70 | 0.50 | 0.52 |
| Net Debt / EBITDA | 3.14 | 3.14 | 1.94 | 1.48 | 2.19 | 3.66 | 5.70 | 1.87 | 1.87 | 1.65 | 1.44 |
| Debt / FCF | — | 3.00 | 2.96 | 3.37 | 6.83 | 5.62 | 4.13 | 3.70 | 3.89 | 4.98 | 8.89 |
| Interest Coverage | 4.58 | 4.58 | 5.96 | 4.23 | 5.14 | 1.57 | 0.34 | 9.35 | 9.85 | 12.80 | 16.28 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.26 | 2.26 | 2.21 | 2.74 | 2.23 | 2.49 | 2.93 | 2.19 | 2.07 | 2.51 | 2.23 |
| Quick Ratio | 1.25 | 1.25 | 1.20 | 1.68 | 1.26 | 1.50 | 1.76 | 1.15 | 1.16 | 1.31 | 1.16 |
| Cash Ratio | 0.22 | 0.22 | 0.35 | 0.72 | 0.34 | 0.52 | 0.56 | 0.20 | 0.10 | 0.23 | 0.13 |
| Asset Turnover | — | 0.70 | 0.70 | 0.61 | 0.56 | 0.47 | 0.51 | 0.75 | 0.78 | 0.71 | 0.83 |
| Inventory Turnover | 4.44 | 4.44 | 4.02 | 4.05 | 3.82 | 4.37 | 5.91 | 5.15 | 5.40 | 4.53 | 4.95 |
| Days Sales Outstanding | — | 48.05 | 46.38 | 53.01 | 58.92 | 52.57 | 40.94 | 43.43 | 51.92 | 46.00 | 44.73 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 0.9% | 0.9% | 0.7% | 0.7% | — | 0.3% | 0.9% | 0.9% | 0.7% | 0.8% |
| Payout Ratio | 49.3% | 49.3% | 37.3% | 39.9% | 26.7% | — | 44.8% | 17.7% | 17.5% | 15.0% | 15.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.4% | 1.9% | 2.5% | 1.7% | 2.5% | 0.4% | 0.8% | 4.9% | 5.4% | 5.0% | 5.2% |
| FCF Yield | 4.1% | 5.2% | 3.9% | 2.4% | 1.9% | 2.8% | 5.2% | 4.6% | 4.6% | 2.6% | 1.5% |
| Buyback Yield | 6.0% | 7.7% | 4.8% | 0.5% | 0.0% | 0.0% | 0.6% | 2.3% | 7.0% | 2.6% | 2.3% |
| Total Shareholder Yield | 6.7% | 8.6% | 5.8% | 1.1% | 0.7% | 0.0% | 1.0% | 3.1% | 8.0% | 3.4% | 3.1% |
| Shares Outstanding | — | $80M | $83M | $86M | $85M | $85M | $84M | $86M | $89M | $92M | $94M |
Widebody production cycle sensitivity
According to current market data, Hexcel trades at a TTM P/E of 70.45, which appears elevated relative to its historical averages and suggests investors are pricing in significant future earnings expansion that is not yet supported by the company's recent stagnant revenue performance.
The forward P/E of 41.88 indicates that the market expects a substantial recovery in earnings, yet the PEG ratio of 2.41 implies that this valuation is expensive relative to the company's current growth trajectory. Investors should monitor whether the premium multiple is sustainable if the anticipated widebody production ramp-up continues to face delays or execution bottlenecks.
As reported in financial statements, Hexcel's gross margin has struggled to break out of the low-to-mid 20% range, peaking at 27.2% in 2026Q1, which indicates that the company has yet to achieve the operating leverage typically expected from its high-fixed-cost manufacturing model.
The volatility in net margins, which dipped as low as -4.0% in 2023Q4, suggests that the company's earning power is highly sensitive to non-operating items and input cost fluctuations. This lack of consistent margin expansion warrants further investigation into whether the company's pricing power is being constrained by long-term OEM contracts.
Based on reported figures, Hexcel's ROIC has remained consistently low, hovering between 0.3% and 2.4% over the last ten quarters, which suggests that the company is currently failing to generate returns that exceed typical industrial cost of capital requirements.
This trend of decaying returns on invested capital appears to be driven by the heavy capital intensity required for carbon fiber production lines that are not yet operating at full capacity. The inability to compound returns effectively suggests that the company's massive investment in infrastructure has yet to translate into meaningful shareholder value creation.
According to recent quarterly filings, Hexcel's cash conversion cycle has remained elevated, peaking at 125 days in 2024Q3, which highlights the significant burden of inventory stockpiling required to support long-cycle aerospace production schedules ahead of actual revenue recognition.
The persistent DIO (Days Inventory Outstanding) levels, often exceeding 90 days, indicate that the company is carrying substantial capital in the form of raw materials and work-in-progress. This inefficiency in working capital management appears to be a structural drag on cash flow, limiting the company's ability to deploy capital more aggressively.
The market frequently misapplies the 'aftermarket tail' valuation premium to Hexcel, failing to recognize that as a pure-play materials provider, the company lacks the high-margin, recurring spare parts revenue that typically characterizes successful aerospace component manufacturers.
Investors should instead focus on the 'composite content per platform' metric, as Hexcel's revenue is almost entirely dependent on original equipment build rates. Treating the company as a traditional aftermarket-heavy aerospace firm obscures the inherent volatility of its business model and the lack of a recurring revenue cushion during industry downturns.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying HXL stock.
Hexcel Corporation's current P/E ratio is 73.1x. The historical average is 29.1x. This places it at the 96th percentile of its historical range.
Hexcel Corporation's current EV/EBITDA is 28.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.0x.
Hexcel Corporation's return on equity (ROE) is 7.9%. The historical average is 0.9%.
Based on historical data, Hexcel Corporation is trading at a P/E of 73.1x. This is at the 96th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Hexcel Corporation's current dividend yield is 0.67% with a payout ratio of 49.3%.
Hexcel Corporation has 23.0% gross margin and 9.1% operating margin.
Hexcel Corporation's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.