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

Hexcel Corporation (NYSE:HXL) is one of the stocks Jim Cramer expressed thoughts on. During the lightning round, when a caller inquired about the stock, Cramer said:

“Hexcel’s a very good company, sir. The only reason I said to buy Boeing is both Hexcel and Howmet had gone up too high. Boeing is still lagging.”

Photo by Adam Nowakowski on Unsplash

Hexcel Corporation (NYSE:HXL) makes advanced carbon fibers, reinforcements, honeycomb materials, and composite parts used in aerospace, defense, and other industrial applications. Madison Investments stated the following regarding Hexcel Corporation (NYSE:HXL) in its third quarter 2025 investor letter:

“The small cap team initiated a new investment position in Hexcel Corporation (NYSE:HXL). Hexcel is a global leader in advanced composite materials, specializing in the production of carbon fiber reinforcements, resin systems, and honeycomb structures. These materials are critical for lightweight, high-performance applications, particularly in the commercial aerospace, space, and defense sectors. Hexcel’s products are used in aircraft frames, wings, engines, and other structural components, offering strength and durability while significantly reducing weight. Major clients include aerospace giants like Airbus and Boeing. We like the duopoly market structure and deep moats of Hexcel’s business. The cycle has been in a prolonged downtrend due to the COVID supply chain shocks, creating bottlenecks in engines and the struggles of Boeing and Spirit Aerosystems. We believe these headwinds are now largely behind us. The competitive moats in this business are significant. Capital intensity is relatively high, while incumbency and vertical integration provide a huge competitive advantage. Certification in wing and fuselage requires massive regulatory approval, which leads to even higher switching costs. Furthermore, the industry has a benign competitive structure, with Japanese firm Toray being the only other direct, scaled composite material competitor, having a combined share in wing and fuselage that approaches 90% and holding sole-sourced positions with original equipment manufacturers (OEMs). We believe the intrinsic value for this franchise is $85.”

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Disclosure: None. This article is originally published at Insider Monkey.