Hexcel Story

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HXL -- USA Stock  

USD 53.76  0.43  0.79%

It appears without question that Hexcel may not recover as fast as we have hopped for as its price went down 0.45% today. Hexcel current daily volatility is 3.71 percent, with a beta of 0.78 and an alpha of 0.36 over DOW. As many millenniums are excited about the new volatility, it is fair to summarize Hexcel based on its historical price patterns. We will cover the possibilities of making Hexcel into a steady grower in February.
Published over a month ago
View all stories for Hexcel Corp | View All Stories
Will the new Hexcel volatility hike frighten stakeholders?
Hexcel has roughly 68 M in cash with 370.8 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.81. This firm has 999.2 M in debt with debt to equity (D/E) ratio of 0.67, which is OK given its current industry classification. The company has a current ratio of 3.21, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Investing in Hexcel Corp, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Hexcel Corp along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Hexcel Corp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Hexcel Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Hexcel Corp. Your research has to be compared to or analyzed against Hexcel Corp's peers to derive any actionable benefits. When done correctly, Hexcel Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Hexcel Corp.

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

Hexcel Corp Correlation with Peers

Investors in Hexcel can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Hexcel Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Hexcel Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Hexcel is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Hexcel for more details

What is driving Hexcel Corp Investor Appetite?

Hexcel appears to be very steady, given 1 month investment horizon. Hexcel holds Efficiency (Sharpe) Ratio of 0.18, which attests that the entity had 0.18% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By evaluating Hexcel technical indicators you can presently evaluate if the expected return of 0.67% is justified by implied risk. Please utilize Hexcel Downside Deviation of 3.03, risk adjusted performance of 0.1316, and Market Risk Adjusted Performance of 0.6457 to validate if our risk estimates are consistent with your expectations.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Hexcel has 64 percent chance to pull down under $49 in the coming weeks

Hexcel new variance upsurges over 15.71. Hexcel shows above-average downside volatility for the selected time horizon. We advise investors to inspect Hexcel further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Hexcel future alpha.

Our Conclusion on Hexcel

While some other entities within the aerospace & defense industry are still a little expensive, even after the recent corrections, Hexcel may offer a potential longer-term growth to stakeholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take over new shares of Hexcel nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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.

About Contributor

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 Raphi 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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