AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - NYSE:AXL - US0240611030 - Common Stock
6.55 USD
+0.38 (+6.16%)
6.41 USD
-0.14 (-2.14%)
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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AXL had positive earnings in the past year.
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 has a Return On Assets of 0.78%. This is in the lower half of the industry: AXL underperforms 74.39% of its industry peers.
The Return On Equity of AXL (6.08%) is worse than 62.20% of its industry peers.
With a Return On Invested Capital value of 4.73%, AXL is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
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 (4.73%) for AXL is above the 3 year average (4.62%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 0.70%, AXL is doing worse than 71.95% of the companies in the same industry.
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.
AXL's Operating Margin has declined in the last couple of years.
AXL has a Gross Margin of 12.00%. This is amonst the worse of the industry: AXL underperforms 85.37% of its industry peers.
In the last couple of years the Gross Margin of AXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.15% | ||
| 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
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.
AXL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AXL has about the same debt to assets ratio.
2.2 Solvency
AXL has an Altman-Z score of 1.51. This is a bad value and indicates that AXL is not financially healthy and even has some risk of bankruptcy.
AXL's Altman-Z score of 1.51 is on the low side compared to the rest of the industry. AXL is outperformed by 81.71% of its industry peers.
The Debt to FCF ratio of AXL is 16.82, which is on the high side as it means it would take AXL, 16.82 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.82, 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 3.86. This is a high value indicating a heavy dependency on external financing.
AXL has a worse Debt to Equity ratio (3.86) than 91.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.63
WACC7.51%
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 1.40. 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 (1.40) is better than 81.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
AXL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 158.82%, which is quite impressive.
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 -6.73% 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)158.82%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%10.53%
Revenue 1Y (TTM)-6.73%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-5.89%
3.2 Future
AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.47% yearly.
AXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.85% yearly.
EPS Next Y-7.74%
EPS Next 2Y14.85%
EPS Next 3Y28.45%
EPS Next 5Y25.47%
Revenue Next Year-4.59%
Revenue Next 2Y-2.41%
Revenue Next 3Y-0.51%
Revenue Next 5Y0.85%
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
The Price/Earnings ratio is 14.89, which indicates a correct valuation of AXL.
AXL's Price/Earnings is on the same level as the industry average.
AXL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.67.
The Price/Forward Earnings ratio is 9.74, which indicates a very decent valuation of AXL.
Based on the Price/Forward Earnings ratio, AXL is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
AXL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
AXL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AXL is cheaper than 80.49% 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 | 4.99 | ||
| EV/EBITDA | 3.95 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 28.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.85%
EPS Next 3Y28.45%
5. Dividend
5.1 Amount
No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.55
+0.38 (+6.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners123.58%
Inst Owner Change-1.01%
Ins Owners3.57%
Ins Owner Change0%
Market Cap777.22M
Revenue(TTM)5.83B
Net Income(TTM)40.90M
Analysts69.23
Price Target6.97 (6.41%)
Short Float %24.29%
Short Ratio7.82
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)23.04%
EPS NQ rev (1m)5.76%
EPS NQ rev (3m)43.82%
EPS NY rev (1m)9.84%
EPS NY rev (3m)35.37%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 9.74 | ||
| P/S | 0.13 | ||
| P/FCF | 4.99 | ||
| P/OCF | 1.76 | ||
| P/B | 1.15 | ||
| P/tB | 9.44 | ||
| EV/EBITDA | 3.95 |
EPS(TTM)0.44
EY6.72%
EPS(NY)0.67
Fwd EY10.27%
FCF(TTM)1.31
FCFY20.06%
OCF(TTM)3.73
OCFY56.95%
SpS49.16
BVpS5.67
TBVpS0.69
PEG (NY)N/A
PEG (5Y)N/A
Graham Number7.49
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
WACC7.51%
ROIC/WACC0.63
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)158.82%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%10.53%
EPS Next Y-7.74%
EPS Next 2Y14.85%
EPS Next 3Y28.45%
EPS Next 5Y25.47%
Revenue 1Y (TTM)-6.73%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-5.89%
Revenue Next Year-4.59%
Revenue Next 2Y-2.41%
Revenue Next 3Y-0.51%
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 5Y25.13%
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.