AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - NYSE:AXL - US0240611030 - Common Stock
6.21 USD
+0.18 (+2.99%)
6.19 USD
-0.02 (-0.32%)
We assign a fundamental rating of 3 out of 10 to AXL. 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
In the past year AXL was profitable.
In the past year AXL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AXL reported negative net income in multiple 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.
The Return On Equity of AXL (6.08%) is worse than 60.98% of its industry peers.
AXL has a Return On Invested Capital of 4.73%. This is in the lower half of the industry: AXL underperforms 73.17% of its industry peers.
AXL had an Average Return On Invested Capital over the past 3 years of 4.62%. This 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
AXL has a Profit Margin of 0.70%. This is in the lower half of the industry: AXL underperforms 70.73% of its industry peers.
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.
With a Gross Margin value of 12.00%, AXL is not doing good in the industry: 86.59% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXL is destroying value.
AXL has more shares outstanding than it did 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.
AXL's Altman-Z score of 1.52 is on the low side compared to the rest of the industry. AXL is outperformed by 80.49% 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.
AXL's Debt to FCF ratio of 16.82 is on the low side compared to the rest of the industry. AXL is outperformed by 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.
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 | 1.52 |
ROIC/WACC0.64
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.
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.
A Quick Ratio of 1.40 indicates that AXL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, AXL belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
| 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.
The earnings per share for AXL have been decreasing by -20.64% on average. This is quite bad
AXL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.75%.
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)0.75%
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
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 2Y14.97%
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
The Price/Earnings ratio is 15.52, which indicates a correct valuation of AXL.
AXL's Price/Earnings ratio is in line with the industry average.
AXL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.47.
With a Price/Forward Earnings ratio of 9.21, the valuation of AXL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AXL is valued a bit cheaper than 67.07% of the companies in the same industry.
AXL is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 9.21 |
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.
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 | 4.73 | ||
| EV/EBITDA | 3.96 |
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
No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.21
+0.18 (+2.99%)
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 Cap736.88M
Revenue(TTM)6.12B
Net Income(TTM)40.90M
Analysts69.23
Price Target6.97 (12.24%)
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 | 15.52 | ||
| Fwd PE | 9.21 | ||
| P/S | 0.13 | ||
| P/FCF | 4.73 | ||
| P/OCF | 1.66 | ||
| P/B | 1.09 | ||
| P/tB | 8.95 | ||
| EV/EBITDA | 3.96 |
EPS(TTM)0.4
EY6.44%
EPS(NY)0.67
Fwd EY10.86%
FCF(TTM)1.31
FCFY21.16%
OCF(TTM)3.73
OCFY60.06%
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 | 1.52 |
F-Score8
WACC7.42%
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.