Hexcel Stock Story

HXL -  USA Stock  

USD 50.07  1.39  2.70%

It looks like CAE will be up for a correction way faster as its share price whent up 1.82% today to Hexcel Corp's 0.147%. While some millenniums may be indifferent towards industrials space, we will examine how steady are Hexcel Corp fundamentals compared to CAE. We are going to summarize some of the competitive aspects of both Hexcel and CAE.
Published over a month ago
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Our viewpoint on Hexcel Corp (NYSE:HXL) and CAE (NYSE:CAE)?
By analyzing existing basic indicators between Hexcel Corp and CAE, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in CAE with a short position in Hexcel Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hexcel Corp has an asset utilization ratio of 55.32 percent. This denotes that the company is making $0.55 for each dollar of assets. An increasing asset utilization means that Hexcel Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Hexcel or AAR Corp is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Hexcel Corp dividends

A dividend is the distribution of a portion of Hexcel Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Hexcel Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Hexcel one year expected dividend income is about $0.06 per share.
Dividend Yield is expected to hike to 0.005474 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (15.3 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-14.2 M-15.3 M
Dividend Yield 0.004  0.005474 
Dividends per Basic Common Share 0.17  0.17 
Investing in stocks that pay dividends, such as stock of Hexcel Corp, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Hexcel Corp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Hexcel Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Hexcel Corp's Liquidity

Hexcel Corp financial leverage refers to using borrowed capital as a funding source to finance Hexcel Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hexcel Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Hexcel Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Hexcel Corp, but it might be worth checking our own buy vs. sell analysis

Correlation Between Hexcel and AAR Corp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Hexcel Corp together with similar or unrelated positions with a negative correlation. For example, you can also add AAR Corp to your portfolio. If AAR Corp is not perfectly correlated to Hexcel Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Hexcel Corp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between HXL and AIR for more information.

Note

Are you currently holding both Hexcel Corp and AAR Corp in your portfolio?
Please note if you are using this as a pair-trade strategy between Hexcel Corp and AAR Corp, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Details

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Hexcel Corp revenue. Based on the latest financial disclosure, Hexcel Corp reported 1.21 B of revenue. This is 65.41% lower than that of the Industrials sector and 89.87% lower than that of the Aerospace & Defense industry. The revenue for all United States stocks is 87.18% higher than that of the entity. As for CAE we see revenue of 3.18 B, which is 73.39% lower than that of the Aerospace & Defense

Hexcel1.21 Billion
Sector3.5 Billion
CAE3.18 Billion
1.2 B
Hexcel
3.5 B
Sector
3.2 B
CAE

Hexcel showing trail of lower volatility

New Skewness is up to 0.08. Price may pull down again. Hexcel Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.12. However, we advise investors to further question Hexcel Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hexcel Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hexcel Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Hexcel Corp

While many of the other players under the aerospace & defense industry are still a bit expensive, Hexcel Corp may offer a potential longer-term growth to stakeholders. With a relatively neutral outlook on the new economy, it is better to hold off any trading of Hexcel as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Hexcel Corp.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Hexcel Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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