AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AXL • US0240611030
7.97 USD
-0.11 (-1.36%)
At close: Jan 30, 2026
7.97 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, AXL scores 3 out of 10 in our fundamental rating. AXL was compared to 42 industry peers in the Automobile Components industry. While AXL is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- 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 50.00% of the companies in the same industry.
- AXL has a Return On Equity of 5.58%. This is in the better half of the industry: AXL outperforms 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.
- The Average Return On Invested Capital over the past 3 years for AXL 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 (0.69%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of AXL has grown nicely.
- AXL's Operating Margin of 4.39% is in line compared to the rest of the industry. AXL outperforms 54.76% of its industry peers.
- In the last couple of years the Operating Margin of AXL has declined.
- The Gross Margin of AXL (12.31%) is worse than 73.81% of its industry peers.
- AXL's Gross Margin has declined in the last couple of years.
| 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
- AXL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, AXL has more shares outstanding
- Compared to 5 years ago, AXL has more shares outstanding
- Compared to 1 year ago, AXL has about the same debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.54, we must say that AXL is in the distress zone and has some risk of bankruptcy.
- AXL has a worse Altman-Z score (1.54) than 69.05% of its industry peers.
- The Debt to FCF ratio of AXL is 16.22, which is on the high side as it means it would take AXL, 16.22 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AXL (16.22) is comparable to the rest of the industry.
- A Debt/Equity ratio of 3.61 is on the high side and indicates that AXL has dependencies on debt financing.
- AXL has a worse Debt to Equity ratio (3.61) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.63
WACC7.92%
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.
- The Quick ratio of AXL (1.43) is better than 71.43% of its industry peers.
| 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
- Looking at the last year, AXL shows a decrease in Revenue. The Revenue has decreased by -6.02% in the last year.
- AXL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.28% yearly.
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
- Based on estimates for the next years, AXL will show a very strong growth in Earnings Per Share. The EPS will grow by 30.48% on average per year.
- 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-15.19%
EPS Next 2Y12.08%
EPS Next 3Y22.31%
EPS Next 5Y30.48%
Revenue Next Year-4.45%
Revenue Next 2Y-1.82%
Revenue Next 3Y-0.24%
Revenue Next 5Y1.46%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.92, the valuation of AXL can be described as rather expensive.
- AXL's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, AXL is valued a bit cheaper.
- A Price/Forward Earnings ratio of 12.44 indicates a correct valuation of AXL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AXL is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of AXL to the average of the S&P500 Index (25.57), we can say AXL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 12.44 |
4.2 Price Multiples
- AXL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AXL is cheaper than 92.86% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXL indicates a rather cheap valuation: AXL is cheaper than 95.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 3.99 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as AXL's earnings are expected to grow with 22.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.08%
EPS Next 3Y22.31%
5. Dividend
5.1 Amount
- AXL does not give a dividend.
| 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 19.92 and the Price/Book (PB) ratio is 1.32.
How financially healthy is AMERICAN AXLE & MFG HOLDINGS?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.