Jim Cramer Says “Hexcel’s a Very Good Company”

“Hexcel’s a precise bully company, sir. The lone crushed I said to bargain Boeing is some Hexcel and Howmet had gone up excessively high. Boeing is inactive lagging.”

Photo by Adam Nowakowski connected Unsplash

Hexcel Corporation (NYSE:HXL) makes precocious c fibers, reinforcements, honeycomb materials, and composite parts utilized successful aerospace, defense, and different concern applications. Madison Investments stated the pursuing regarding Hexcel Corporation (NYSE:HXL) successful its 3rd 4th 2025 capitalist letter:

“The tiny headdress squad initiated a caller concern presumption successful Hexcel Corporation (NYSE:HXL). Hexcel is simply a planetary person successful precocious composite materials, specializing successful the accumulation of c fibre reinforcements, resin systems, and honeycomb structures. These materials are captious for lightweight, high-performance applications, peculiarly successful the commercialized aerospace, space, and defence sectors. Hexcel’s products are utilized successful craft frames, wings, engines, and different structural components, offering spot and durability portion importantly reducing weight. Major clients see aerospace giants similar Airbus and Boeing. We similar the duopoly marketplace operation and heavy moats of Hexcel’s business. The rhythm has been successful a prolonged downtrend owed to the COVID proviso concatenation shocks, creating bottlenecks successful engines and the struggles of Boeing and Spirit Aerosystems. We judge these headwinds are present mostly down us. The competitory moats successful this concern are significant. Capital strength is comparatively high, portion incumbency and vertical integration supply a immense competitory advantage. Certification successful helping and fuselage requires monolithic regulatory approval, which leads to adjacent higher switching costs. Furthermore, the manufacture has a benign competitory structure, with Japanese steadfast Toray being the lone different direct, scaled composite worldly competitor, having a combined stock successful helping and fuselage that approaches 90% and holding sole-sourced positions with archetypal instrumentality manufacturers (OEMs). We judge the intrinsic worth for this franchise is $85.”

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