HXLHexcel Corporation

$94.65

Is the business good?

How good a business is HXL?

Hexcel Corporation earns 6.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

6.6%

Return on invested capital · cost of capital 9.0% · 2.4 points below what the capital costs: growth destroys value

Operating margin
9.5%

Operating margin · Aerospace & Defense median 9.6% · 12 months to Q1 2026

Share count, year on year
−6.1%

Share count, year on year · bought back, each share owns more of the company

R&D as % of revenue
3.1%

R&D as % of revenue

Operating margin by fiscal year
YearOperating margin
FY20200.94%
FY20213.9%
FY202211%
FY202312%
FY20249.8%
FY20259.1%
Details
Gross margin12 months to Q1 2026
24%
Operating margin12 months to Q1 2026
9.5%
Free cash flow margin
11%
R&D as % of revenue
3.1%
Revenue, trailing twelve months
$1.94B
Free cash flow, trailing twelve months
$206M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
6.6%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.