AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
6.7 USD
+0.14 (+2.13%)
6.73 USD
+0.03 (+0.45%)
AXL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the Automobile Components industry. AXL may be in some trouble as it scores bad on both profitability and health. 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.
AXL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AXL reported negative net income in multiple 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.
AXL's Return On Equity of 5.58% is on the low side compared to the rest of the industry. AXL is outperformed by 62.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.97%, AXL is doing worse than 73.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AXL is below the industry average of 8.62%.
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
Looking at the Profit Margin, with a value of 0.69%, AXL is doing worse than 71.95% of the companies in the same industry.
In the last couple of years the Profit Margin of AXL has grown nicely.
AXL's Operating Margin of 4.39% is on the low side compared to the rest of the industry. AXL is outperformed by 70.73% of its industry peers.
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 85.37% 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
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.
AXL's Debt to FCF ratio of 16.22 is on the low side compared to the rest of the industry. AXL is outperformed by 73.17% of 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 91.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.66
WACC7.57%
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.
Looking at the Current ratio, with a value of 1.77, AXL is doing worse than 76.83% 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 has a better Quick ratio (1.43) 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.
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 decreased by -6.02% in the past 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.
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-18.35%
EPS Next 2Y15.33%
EPS Next 3Y21.46%
EPS Next 5Y30.48%
Revenue Next Year-4.49%
Revenue Next 2Y-1.93%
Revenue Next 3Y-0.35%
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.
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
A Price/Earnings ratio of 16.75 indicates a correct 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.
AXL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.26.
The Price/Forward Earnings ratio is 9.88, which indicates a very decent valuation of AXL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXL indicates a somewhat cheap valuation: AXL is cheaper than 67.07% of the companies listed in the same industry.
AXL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.75 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaply inside the industry as 98.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
AXL's earnings are expected to grow with 21.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.33%
EPS Next 3Y21.46%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
6.7
+0.14 (+2.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners139.37%
Inst Owner Change13.09%
Ins Owners3.57%
Ins Owner Change0%
Market Cap795.29M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price Target7.23 (7.91%)
Short Float %25.05%
Short Ratio9.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)3.66%
PT rev (3m)10.64%
EPS NQ rev (1m)-281.61%
EPS NQ rev (3m)-858.31%
EPS NY rev (1m)-11.5%
EPS NY rev (3m)-2.57%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.75 | ||
| Fwd PE | 9.88 | ||
| P/S | 0.14 | ||
| P/FCF | 4.93 | ||
| P/OCF | 1.8 | ||
| P/B | 1.11 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 3.78 |
EPS(TTM)0.4
EY5.97%
EPS(NY)0.68
Fwd EY10.13%
FCF(TTM)1.36
FCFY20.28%
OCF(TTM)3.73
OCFY55.61%
SpS49.15
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
WACC7.57%
ROIC/WACC0.66
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-18.35%
EPS Next 2Y15.33%
EPS Next 3Y21.46%
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-4.49%
Revenue Next 2Y-1.93%
Revenue Next 3Y-0.35%
Revenue Next 5Y1.46%
EBIT growth 1Y-3.21%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year187.01%
EBIT Next 3Y44.04%
EBIT Next 5Y26.35%
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.