AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
6.41 USD
-0.04 (-0.62%)
6.41 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to AXL. AXL was compared to 43 industry peers in the Automobile Components industry. AXL has a medium profitability rating, but doesn't score so well on its financial health evaluation. AXL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
AXL had positive earnings in the past year.
AXL had a positive operating cash flow in the past year.
In multiple years AXL reported negative net income over the last 5 years.
AXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.75%, AXL is in line with its industry, outperforming 51.16% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.58%, AXL is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
With a Return On Invested Capital value of 4.97%, AXL perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AXL is below the industry average of 9.10%.
The last Return On Invested Capital (4.97%) for AXL is above the 3 year average (4.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 5.58% | ||
| ROIC | 4.97% |
ROA(3y)0.39%
ROA(5y)-1.64%
ROE(3y)3.42%
ROE(5y)-28%
ROIC(3y)4.62%
ROIC(5y)4.36%
1.3 Margins
With a Profit Margin value of 0.69%, AXL perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
AXL's Profit Margin has improved in the last couple of years.
AXL has a Operating Margin (4.39%) which is comparable to the rest of the industry.
AXL's Operating Margin has declined in the last couple of years.
AXL has a Gross Margin of 12.31%. This is in the lower half of the industry: AXL underperforms 72.09% of its industry peers.
In the last couple of years the Gross Margin of AXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | 0.69% | ||
| GM | 12.31% |
OM growth 3Y-7.92%
OM growth 5Y-8.14%
PM growth 3Y70.91%
PM growth 5YN/A
GM growth 3Y-4.77%
GM growth 5Y-2.62%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXL is destroying value.
The number of shares outstanding for AXL has been increased compared to 1 year ago.
The number of shares outstanding for AXL has been increased compared to 5 years ago.
The debt/assets ratio for AXL has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that AXL is in the distress zone and has some risk of bankruptcy.
AXL has a worse Altman-Z score (1.52) than 62.79% of its industry peers.
AXL has a debt to FCF ratio of 16.22. This is a negative value and a sign of low solvency as AXL would need 16.22 years to pay back of all of its debts.
AXL's Debt to FCF ratio of 16.22 is in line compared to the rest of the industry. AXL outperforms 51.16% of its industry peers.
A Debt/Equity ratio of 3.61 is on the high side and indicates that AXL has dependencies on debt financing.
AXL has a Debt to Equity ratio of 3.61. This is amonst the worse of the industry: AXL underperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.66
WACC7.49%
2.3 Liquidity
AXL has a Current Ratio of 1.77. This is a normal value and indicates that AXL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.77, AXL perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
AXL has a Quick Ratio of 1.43. This is a normal value and indicates that AXL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.43, AXL is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
AXL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.67%.
The earnings per share for AXL have been decreasing by -20.64% on average. This is quite bad
The Revenue has decreased by -6.02% in the past year.
Measured over the past years, AXL shows a decrease in Revenue. The Revenue has been decreasing by -1.28% on average per year.
EPS 1Y (TTM)-16.67%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%-20%
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%0.03%
3.2 Future
AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.48% yearly.
The Revenue is expected to grow by 1.46% on average over the next years.
EPS Next Y-15.93%
EPS Next 2Y14.08%
EPS Next 3Y20.6%
EPS Next 5Y30.48%
Revenue Next Year-4.56%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.43%
Revenue Next 5Y1.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AXL is valuated correctly with a Price/Earnings ratio of 16.02.
AXL's Price/Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 60.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. AXL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.66, the valuation of AXL can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXL indicates a somewhat cheap valuation: AXL is cheaper than 74.42% of the companies listed in the same industry.
AXL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaply inside the industry as 95.35% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaper than 97.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.72 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 20.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.08%
EPS Next 3Y20.6%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
6.41
-0.04 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners139.37%
Inst Owner Change13.09%
Ins Owners3.57%
Ins Owner Change0%
Market Cap760.87M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price Target7.53 (17.47%)
Short Float %25.17%
Short Ratio9.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.15%
Min EPS beat(2)14.91%
Max EPS beat(2)31.39%
EPS beat(4)4
Avg EPS beat(4)77.08%
Min EPS beat(4)14.91%
Max EPS beat(4)227.01%
EPS beat(8)8
Avg EPS beat(8)213.37%
EPS beat(12)10
Avg EPS beat(12)17.6%
EPS beat(16)13
Avg EPS beat(16)36.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.74%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)-0.24%
Revenue beat(16)7
Avg Revenue beat(16)0.36%
PT rev (1m)4.21%
PT rev (3m)15.29%
EPS NQ rev (1m)20.11%
EPS NQ rev (3m)-705.85%
EPS NY rev (1m)-8.88%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 9.66 | ||
| P/S | 0.13 | ||
| P/FCF | 4.72 | ||
| P/OCF | 1.72 | ||
| P/B | 1.06 | ||
| P/tB | 5.13 | ||
| EV/EBITDA | 3.73 |
EPS(TTM)0.4
EY6.24%
EPS(NY)0.66
Fwd EY10.35%
FCF(TTM)1.36
FCFY21.2%
OCF(TTM)3.73
OCFY58.13%
SpS49.15
BVpS6.05
TBVpS1.25
PEG (NY)N/A
PEG (5Y)N/A
Graham Number7.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 5.58% | ||
| ROCE | 6.29% | ||
| ROIC | 4.97% | ||
| ROICexc | 6.02% | ||
| ROICexgc | 7.26% | ||
| OM | 4.39% | ||
| PM (TTM) | 0.69% | ||
| GM | 12.31% | ||
| FCFM | 2.77% |
ROA(3y)0.39%
ROA(5y)-1.64%
ROE(3y)3.42%
ROE(5y)-28%
ROIC(3y)4.62%
ROIC(5y)4.36%
ROICexc(3y)5.31%
ROICexc(5y)4.98%
ROICexgc(3y)6.63%
ROICexgc(5y)6.27%
ROCE(3y)5.85%
ROCE(5y)5.52%
ROICexgc growth 3Y2.99%
ROICexgc growth 5Y-4.38%
ROICexc growth 3Y4.2%
ROICexc growth 5Y-1.31%
OM growth 3Y-7.92%
OM growth 5Y-8.14%
PM growth 3Y70.91%
PM growth 5YN/A
GM growth 3Y-4.77%
GM growth 5Y-2.62%
F-Score8
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 61.43% | ||
| Cap/Sales | 4.82% | ||
| Interest Coverage | 1.56 | ||
| Cash Conversion | 61.98% | ||
| Profit Quality | 402.24% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.52 |
F-Score8
WACC7.49%
ROIC/WACC0.66
Cap/Depr(3y)43.16%
Cap/Depr(5y)40.82%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.67%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%-20%
EPS Next Y-15.93%
EPS Next 2Y14.08%
EPS Next 3Y20.6%
EPS Next 5Y30.48%
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%0.03%
Revenue Next Year-4.56%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.43%
Revenue Next 5Y1.46%
EBIT growth 1Y-3.21%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year186.93%
EBIT Next 3Y43.59%
EBIT Next 5Y26.35%
FCF growth 1Y-45.43%
FCF growth 3Y-16.99%
FCF growth 5Y10.25%
OCF growth 1Y-10.05%
OCF growth 3Y-5.43%
OCF growth 5Y-4.04%
AMERICAN AXLE & MFG HOLDINGS / AXL FAQ
Can you provide the ChartMill fundamental rating for AMERICAN AXLE & MFG HOLDINGS?
ChartMill assigns a fundamental rating of 3 / 10 to AXL.
What is the valuation status for AXL stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN AXLE & MFG HOLDINGS (AXL). This can be considered as Fairly Valued.
What is the profitability of AXL stock?
AMERICAN AXLE & MFG HOLDINGS (AXL) has a profitability rating of 4 / 10.
What is the valuation of AMERICAN AXLE & MFG HOLDINGS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN AXLE & MFG HOLDINGS (AXL) is 16.02 and the Price/Book (PB) ratio is 1.06.
How financially healthy is AMERICAN AXLE & MFG HOLDINGS?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.