AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
6.23 USD
+0.4 (+6.86%)
6.23 USD
0 (0%)
Taking everything into account, AXL scores 3 out of 10 in our fundamental rating. AXL was compared to 82 industry peers in the Automobile Components industry. Both the profitability and financial health of AXL have multiple concerns. AXL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AXL was profitable.
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.
Each year in the past 5 years AXL had a positive operating cash flow.
1.2 Ratios
AXL's Return On Assets of 0.75% is on the low side compared to the rest of the industry. AXL is outperformed by 73.17% of its industry peers.
Looking at the Return On Equity, with a value of 5.58%, AXL is doing worse than 62.20% of the companies in the same industry.
AXL has a Return On Invested Capital of 4.97%. This is in the lower half of the industry: AXL underperforms 73.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AXL is below the industry average of 8.52%.
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 is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of AXL has grown nicely.
With a Operating Margin value of 4.39%, AXL is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of AXL has declined.
AXL's Gross Margin of 12.31% is on the low side compared to the rest of the industry. AXL is outperformed by 86.59% 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.
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.
AXL has about the same debt/assets ratio as last year.
2.2 Solvency
AXL has an Altman-Z score of 1.52. This is a bad value and indicates that AXL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AXL (1.52) is worse than 80.49% 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.
With a Debt to FCF ratio value of 16.22, AXL is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
AXL has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
AXL has a Debt to Equity ratio of 3.61. This is amonst the worse of the industry: AXL underperforms 91.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.67
WACC7.42%
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.
The Current ratio of AXL (1.77) is worse than 76.83% of its industry peers.
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 84.15% 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
The Revenue is expected to grow by 0.85% on average over the next years.
EPS Next Y-7.74%
EPS Next 2Y14.97%
EPS Next 3Y28.52%
EPS Next 5Y30.48%
Revenue Next Year-4.46%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.42%
Revenue Next 5Y0.85%
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
With a Price/Earnings ratio of 15.58, AXL is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AXL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AXL to the average of the S&P500 Index (25.47), we can say AXL is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.24 indicates a reasonable valuation of AXL.
67.07% of the companies in the same industry are more expensive than AXL, based on the Price/Forward Earnings ratio.
AXL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaper than 84.15% of the companies in the same industry.
AXL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AXL is cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.58 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 28.52% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y28.52%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.23
+0.4 (+6.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners123.58%
Inst Owner Change13.09%
Ins Owners3.57%
Ins Owner Change0%
Market Cap739.25M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price Target7.23 (16.05%)
Short Float %23.9%
Short Ratio7.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)10.64%
PT rev (3m)17.51%
EPS NQ rev (1m)-435.47%
EPS NQ rev (3m)-587.29%
EPS NY rev (1m)0%
EPS NY rev (3m)10.09%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 9.24 | ||
| P/S | 0.13 | ||
| P/FCF | 4.58 | ||
| P/OCF | 1.67 | ||
| P/B | 1.03 | ||
| P/tB | 4.98 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)0.4
EY6.42%
EPS(NY)0.67
Fwd EY10.82%
FCF(TTM)1.36
FCFY21.82%
OCF(TTM)3.73
OCFY59.83%
SpS49.16
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
WACC7.42%
ROIC/WACC0.67
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-7.74%
EPS Next 2Y14.97%
EPS Next 3Y28.52%
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-4.46%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.42%
Revenue Next 5Y0.85%
EBIT growth 1Y-3.21%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year179.35%
EBIT Next 3Y52.39%
EBIT Next 5Y26.07%
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 of AMERICAN AXLE & MFG HOLDINGS (AXL) stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN AXLE & MFG HOLDINGS (AXL). This can be considered as Fairly Valued.
How profitable is AMERICAN AXLE & MFG HOLDINGS (AXL) stock?
AMERICAN AXLE & MFG HOLDINGS (AXL) has a profitability rating of 3 / 10.
Can you provide the financial health for AXL stock?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.