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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

With a Return On Assets value of 0.75%, AXL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
AXL has a better Return On Equity (5.58%) than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.97%, AXL is in line with its industry, outperforming 50.00% of the companies in the same industry.
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 (0.69%) which is in line with its industry peers.
AXL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.39%, AXL is in line with its industry, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Operating Margin of AXL has declined.
AXL has a Gross Margin of 12.31%. This is in the lower half of the industry: AXL underperforms 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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 1.55, we must say that AXL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, AXL is doing worse than 64.29% of the companies in the same industry.
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.
AXL has a Debt to FCF ratio (16.22) which is in line with its industry peers.
AXL has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external 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	1.55

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.
With a Current ratio value of 1.77, AXL perfoms like the industry average, outperforming 47.62% 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.
AXL's Quick ratio of 1.43 is fine compared to the rest of the industry. AXL outperforms 71.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.77
Quick Ratio	1.43

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WACC

Debt/Equity

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Altman-Z score

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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
AXL shows a decrease in Revenue. In the last year, the revenue decreased by -6.02%.
The Revenue has been decreasing by -1.28% on average over the past years.

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.
AXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.46% yearly.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 20.70 indicates a rather expensive valuation of AXL.
AXL's Price/Earnings ratio is in line with the industry average.
AXL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.92, which indicates a correct valuation of AXL.
AXL's Price/Forward Earnings is on the same level as the industry average.
AXL is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	20.7
Fwd PE	12.92

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXL indicates a rather cheap valuation: AXL is cheaper than 92.86% of the companies listed 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	6.09
EV/EBITDA	4.04

4.3 Compensation for Growth

AXL's earnings are expected to grow with 22.31% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y12.08%

EPS Next 3Y22.31%

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5. Dividend

5.1 Amount

AXL does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	0%

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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.