Is HXL a high-quality business?

AlphaMadera's AlphaQuality grade scores Hexcel Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how HXL compares to a Buffett-style quality bar.

What is Hexcel Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to HXL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes HXL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

HXL - Hexcel Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $90.25 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B- 65.0 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

C- 50.5

5yr Avg ROIC 5.4% 37/100
Operating Margin Trend +0.90 pp/yr 82/100

Capital Efficiency

Weight: 15%

C+ 61.0

5yr Avg ROE 7.8% 49/100
5yr Share-Count CAGR -1.4% 83/100

Growth Quality

Weight: 25%

A- 82.3

5yr Revenue CAGR 9.3% 78/100
5yr EPS CAGR 63.9% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

B- 69.0

5yr FCF Margin 10.1% 70/100
5yr FCF/NI Conversion 2.84x 67/100

Balance Sheet

Weight: 10%

B- 64.6

Net Debt / EBITDA 3.13x 47/100
Interest Coverage (EBIT/Int) 4.58x 61/100
Altman Z-Score 5.01 100/100

Stability

Weight: 5%

C- 48.7

EPS Volatility (σ/μ) 0.59 23/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 2/5 60/100

3 of 3 gurus held; 1 new buy; 1 added; 1 trimmed; 1 full exit.

Holders: 3
Avg Δ position: -2.9%
New buys: 1
Full exits: 1

Dalio new
Wood sold -100%
Cooperman decreased -90%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.