The Value of Hexcel Corporation (HXL) Underpriced by 8.64%?

Publicly-traded company Hexcel Corporation (NYSE:HXL) had a closing price of $75.62 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $82.77, this means that the stock is underpriced by 8.64%. In the past 52 weeks the company’s stock price has moved within the range of $53.50 to $87.00.

This particular stock’s 5-day moving average is 74.64, its 20-day moving average is 75.71 and its 100-day moving average is 79.92. Hexcel Corporation (HXL) currently has 85.10M shares outstanding, which means that its market capitalization is $6.44B.

The Details: Hexcel Corporation (HXL) Financial Health

There are a number of indicators we can consider when wondering about a potential stock’s financial health. Looking at a company’s profit margin, for example, tells us how much of its sales revenue it keeps in earnings – and it is calculated by taking net income and dividing it by net sales. HXL currently has a profit margin of 12.70%.

Checking out a company’s operating margin is also useful, as it tells us how much profit is retained after considering operating costs and depreciation. Hexcel Corporation (HXL) has an operating margin of 18.00%.

Return on Assets is a number, expressed as a percentage that tells us how well a publicly-traded company is using its current assets to generate revenue. The higher the percentage, the better a company is using its assets to turn a profit. At the moment, Hexcel Corporation Return on Assets is 9.70%.

What Does Wall Street Say about Company?

When choosing stocks, many investors search for what Wall Street professionals think about the company first – like what the average rating is. At the moment, the average analyst rating for HXL is Hold. Out of 15 total analysts who were surveyed, 1 rated it a sell, 1 rated it a underweight, 0 rated it an overweight, 8 rated it hold, and 5 rated it a Buy.

Understanding Profitability at Hexcel Corporation (HXL)

Taking a look at a public company’s Earnings per Share (EPS) is a good way of evaluating its profitability. In the most recent financial results released by Hexcel Corporation, for the quarter ending on 12/2019, the company posted EPS of 0.85. The average estimate of Wall Street analysts had projected 0.87.

Wall Street analysts, on average, are forecasting the company’s EPS to be 0.85, compared to 0.82 reported in the same quarter last year. When it comes to net revenue, the average estimate from a total of 13 analysts is 591.49M – compared to 561M posted in the year-ago period.