AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
8.28 USD
+0.14 (+1.72%)
8.29 USD
+0.01 (+0.12%)
We assign a fundamental rating of 3 out of 10 to AXL. AXL was compared to 42 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.
- In the past year AXL had a positive cash flow from operations.
- In multiple years AXL reported negative net income over the last 5 years.
- In the past 5 years AXL always reported a positive cash flow from operatings.
1.2 Ratios
- AXL has a Return On Assets of 0.75%. This is comparable to the rest of the industry: AXL outperforms 50.00% of its industry peers.
- AXL has a better Return On Equity (5.58%) than 71.43% of its industry peers.
- AXL has a Return On Invested Capital of 4.97%. This is comparable to the rest of the industry: AXL outperforms 50.00% of its industry peers.
- AXL had an Average Return On Invested Capital over the past 3 years of 4.62%. This is below the industry average of 9.10%.
- The 3 year average ROIC (4.62%) for AXL is below the current ROIC(4.97%), indicating increased profibility in the last year.
| 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
- AXL has a Profit Margin of 0.69%. This is comparable to the rest of the industry: AXL outperforms 52.38% of its industry peers.
- AXL's Profit Margin has improved in the last couple of years.
- AXL has a Operating Margin of 4.39%. This is comparable to the rest of the industry: AXL outperforms 54.76% of its industry peers.
- AXL's Operating Margin has declined in the last couple of years.
- The Gross Margin of AXL (12.31%) is worse than 73.81% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXL is destroying value.
- Compared to 1 year ago, AXL has more shares outstanding
- AXL has more shares outstanding than it did 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 1.55, we must say that AXL is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AXL (1.55) is worse than 64.29% 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 has a Debt to FCF ratio (16.22) which is in line with its industry peers.
- A Debt/Equity ratio of 3.61 is on the high side and indicates that AXL has dependencies on debt financing.
- The Debt to Equity ratio of AXL (3.61) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.62
WACC7.99%
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.
- AXL has a Current ratio (1.77) which is comparable to the rest of the 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.
- AXL has a better Quick ratio (1.43) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- The earnings per share for AXL have decreased strongly by -16.67% in the last year.
- The earnings per share for AXL have been decreasing by -20.64% on average. This is quite bad
- AXL shows a decrease in Revenue. In the last year, the revenue decreased by -6.02%.
- 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
- The Earnings Per Share is expected to grow by 30.48% on average over the next years. This is a very strong growth
- Based on estimates for the next years, AXL will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
EPS Next Y-15.93%
EPS Next 2Y14.08%
EPS Next 3Y20.6%
EPS Next 5Y30.48%
Revenue Next Year-4.53%
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
- The Price/Earnings ratio is 20.70, which indicates a rather expensive current valuation of AXL.
- Compared to the rest of the industry, the Price/Earnings ratio of AXL is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AXL is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 12.48, AXL is valued correctly.
- AXL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 64.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, AXL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaper than 92.86% of the companies in the same industry.
- 95.24% of the companies in the same industry are more expensive than AXL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.09 | ||
| EV/EBITDA | 4.02 |
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
- No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 5 / 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 20.7 and the Price/Book (PB) ratio is 1.37.
How financially healthy is AMERICAN AXLE & MFG HOLDINGS?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.