AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - NYSE:AXL - US0240611030 - Common Stock
6.03 USD
-0.06 (-0.99%)
6.321 USD
+0.29 (+4.83%)
We assign a fundamental rating of 3 out of 10 to AXL. AXL was compared to 82 industry peers in the Automobile Components industry. AXL may be in some trouble as it scores bad on both profitability and health. AXL has a correct valuation and a medium growth rate.
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.
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 0.78%, AXL is doing worse than 73.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.08%, AXL is doing worse than 60.98% of the companies in the same industry.
AXL's Return On Invested Capital of 4.73% is on the low side compared to the rest of the industry. AXL is outperformed by 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 8.55%.
The 3 year average ROIC (4.62%) for AXL is below the current ROIC(4.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 6.08% | ||
| ROIC | 4.73% |
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 0.70%, AXL is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
AXL's Profit Margin has improved in the last couple of years.
AXL has a Operating Margin of 4.15%. This is in the lower half of the industry: AXL underperforms 71.95% of its industry peers.
In the last couple of years the Operating Margin of AXL has declined.
The Gross Margin of AXL (12.00%) is worse than 86.59% of its industry peers.
AXL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.15% | ||
| PM (TTM) | 0.7% | ||
| GM | 12% |
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.
Compared to 1 year ago, AXL has more shares outstanding
AXL has more shares outstanding than it did 5 years ago.
AXL has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 1.51, 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 1.51, AXL is doing worse than 80.49% of the companies in the same industry.
AXL has a debt to FCF ratio of 16.82. This is a negative value and a sign of low solvency as AXL would need 16.82 years to pay back of all of its debts.
The Debt to FCF ratio of AXL (16.82) is worse than 73.17% of its industry peers.
A Debt/Equity ratio of 3.86 is on the high side and indicates that AXL has dependencies on debt financing.
With a Debt to Equity ratio value of 3.86, AXL is not doing good in the industry: 91.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.64
WACC7.37%
2.3 Liquidity
A Current Ratio of 1.77 indicates that AXL should not have too much problems paying its short term obligations.
AXL has a Current ratio of 1.77. This is in the lower half of the industry: AXL underperforms 76.83% of its industry peers.
AXL has a Quick Ratio of 1.40. 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 (1.40) than 81.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for AXL have decreased strongly by -16.67% in the last year.
AXL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.64% yearly.
The Revenue has been growing slightly by 0.75% in the past year.
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)0.75%
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 0.85% on average per year.
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.
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
AXL is valuated correctly with a Price/Earnings ratio of 15.07.
AXL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.51. AXL is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 8.95 indicates a reasonable valuation of AXL.
69.51% of the companies in the same industry are more expensive than AXL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AXL to the average of the S&P500 Index (34.98), we can say AXL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXL is valued a bit cheaper than 79.27% of the companies in the same industry.
97.56% 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 | 4.59 | ||
| EV/EBITDA | 3.94 |
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 |
6.03
-0.06 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners123.58%
Inst Owner Change12.3%
Ins Owners3.57%
Ins Owner Change0%
Market Cap715.52M
Revenue(TTM)6.12B
Net Income(TTM)40.90M
Analysts69.23
Price Target6.97 (15.59%)
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)129.2%
Min EPS beat(2)31.39%
Max EPS beat(2)227.01%
EPS beat(4)4
Avg EPS beat(4)199.39%
Min EPS beat(4)31.39%
Max EPS beat(4)504.12%
EPS beat(8)7
Avg EPS beat(8)116.55%
EPS beat(12)10
Avg EPS beat(12)17.37%
EPS beat(16)13
Avg EPS beat(16)200.14%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-0.93%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)5
Avg Revenue beat(12)0.16%
Revenue beat(16)8
Avg Revenue beat(16)0.59%
PT rev (1m)6.73%
PT rev (3m)19.96%
EPS NQ rev (1m)4.33%
EPS NQ rev (3m)26.31%
EPS NY rev (1m)9.84%
EPS NY rev (3m)35.37%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 8.95 | ||
| P/S | 0.12 | ||
| P/FCF | 4.59 | ||
| P/OCF | 1.62 | ||
| P/B | 1.06 | ||
| P/tB | 8.69 | ||
| EV/EBITDA | 3.94 |
EPS(TTM)0.4
EY6.63%
EPS(NY)0.67
Fwd EY11.18%
FCF(TTM)1.31
FCFY21.79%
OCF(TTM)3.73
OCFY61.86%
SpS49.16
BVpS5.67
TBVpS0.69
PEG (NY)N/A
PEG (5Y)N/A
Graham Number7.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 6.08% | ||
| ROCE | 5.99% | ||
| ROIC | 4.73% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 6.67% | ||
| OM | 4.15% | ||
| PM (TTM) | 0.7% | ||
| GM | 12% | ||
| FCFM | 2.67% |
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 62.6% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | 63.2% | ||
| Profit Quality | 381.17% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.51 |
F-Score8
WACC7.37%
ROIC/WACC0.64
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)0.75%
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 1Y2.58%
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-23.47%
FCF growth 3Y-16.99%
FCF growth 5Y10.25%
OCF growth 1Y11.04%
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.