Hexcel Corp (HXL)

wind play.

Very solid company with great management and good growth prospects selling at a significant discount. Net tangible assets are worth $4.66 per share and over the past five years, their average earnings have been 84 cents per share and average operating cash flows have been 92 cents per share. While the economic downfall has obviously hampered the aerospace industry and this will harm their revenues since Boeing and EADS are their biggest customers, they are holding up reasonably well thus far and have improved their cost picture. Moreover, they still have growth in other sectors, including carbon fiber and materials for wind turbine blades.

HXL has a moderate degree of leverage with high liquidity and good cash flows. They are paying down debt at the moment and have slowed capital expenditures in the current environment. Even going with a fairly conservative estimates on this with 60 cent per share "added value" each year with a small 3% growth rate and a 12% cost of capital, I still come up with a valuation of $11.28. Assuming they can simply continue what they've been doing, I come up with a valuation closer to the $17 - $18 range. 5-year upside is probably in the $30 - $35 range. Based on all of this, I'm going with the green thumb.

If you want to read more, see my write-up at Seeking Alpha:

http://seekingalpha.com/article/134146-hexcel-value-in-the-honeycomb

Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing 4/27 picks.

Well positioned small cap with plenty of upside and earnings potential to capitalize on the wind turbine and aerospace industries.

Short for the long term, but it may get a bounce based on Obama alternative energy hype. Wind turbines use this product to make the turbines lighter in weight. Boone Pickens, anyone?

Should benefit from Obama'swind energy investments and eventually will capitalize on the Boeing contracts. PEG of only .6, balance sheet ok and profitability has been stable in spite of headwins.

The Boeing strike is a downdraft for the near-term, but I still like HXL's long-term prospects. Aerospace bookings are strong and should provide a nice tailwind for a few years while the wind energy market ramps-up. Light-weight, strong materials are only going and find more applications (e.g. auto) in coming years, and I expect energy-hungry aluminum and titanium will become less competitive (although there is an interesting new technology that could radically lower titanium costs in a few years.)

I am once again doubling down my position in Hexcel, its business is sound no matter changes in the immediate future.

A good portion of its revenue is already coming from the commercial aerospace industry and that revenue will trickle in for many years. Also, this company has technology that can help with renewable resources such as wind. This is good for the long term because EVENTUALLY we will need to find more sources for fuel. Also, looking at the latest income/balance sheet/cash flow statements, i am pleased because I have seen an increased EPS, increased assets, a decrease in Long Term Debt (for quite a few years). The only problem is the past negative cash flow. Still, if they are doing all this and losing a little cash, it is pretty good

Thanks
--Shawn

ps: i am still sorta new at this so don't be afraid to criticize/show your own view

If they develope more commercial uses for their products I see a nice steady rise for a few years to come.

The use of lightweight composites will increase throughout the transportation universe.

HXL should directly benefit from the increasing use of composites among planmakers and other vehicle makers seeking efficiencies through lighter weight. Further, its entrance into the wind energy field should provide increasing revenues as the U.S. seeks to expand its source of alternative energy.

With long-term fuel costs not likely to subside, aircraft efficiencies have become very important to their operators. The light weight structural composites produced by HXL will be critical to the likes of Boeing and Airbus.

Windpower

Isn't everything an oil play these days. This company seems to have a head start on most of its competitors. Steel is up, Lakshmi Mittal seems to think it will go higher. Hexcel just got more competitive. Efficiency is the best way to combat high oil prices. Composite materials will play an increasingly large role in our future. International exposure looks solid, but there kooks to be room for growth.

Sticking to the aerospace theme here. Anything that has that word in the description is a buy. Also showed up on the emerging industry screen. Screaming buy 10% off its high but going to bust it.

as far as materials are concerned, we are entering the carbon age (specifically carbon fiber). right now it's on the cutting edge, but in 5-10 years it will be widespread and mainstream.

Carbon fibers manufacturer with a huge future. Hexcel provides carbon fibers for use in wind turbines which are THE alternative energy play of the future. Carbon fibers enable materials to be lightweight yet strong. Possible growth in the auto market (which will require lighter, stronger materials for smaller fuel efficient vehicles).

The companies who will demand this product in the future is enough said.

Wind power