AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
6.28 USD
+0.27 (+4.49%)
6.35 USD
+0.07 (+1.11%)
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 has a valuation in line with the averages, but it does not seem to be growing.
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.
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
Looking at the Return On Assets, with a value of 0.75%, AXL is doing worse than 73.17% of the companies in the same industry.
AXL has a worse Return On Equity (5.58%) than 62.20% of its industry peers.
AXL has a Return On Invested Capital of 4.97%. This is in the lower half of the industry: AXL underperforms 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 8.62%.
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
With a Profit Margin value of 0.69%, AXL is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of AXL has grown nicely.
Looking at the Operating Margin, with a value of 4.39%, AXL is doing worse than 70.73% of the companies in the same industry.
AXL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.31%, AXL is doing worse than 85.37% of the companies in the same industry.
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.
AXL has more shares outstanding than it did 1 year ago.
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
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.
The Altman-Z score of AXL (1.51) 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.
With a Debt to FCF ratio value of 16.22, AXL is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.61 is on the high side and indicates that AXL has dependencies on debt financing.
With a Debt to Equity ratio value of 3.61, 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 | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.67
WACC7.46%
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.
AXL has a worse Current ratio (1.77) than 76.83% of its industry peers.
A Quick Ratio of 1.43 indicates that AXL should not have too much problems paying its short term obligations.
The Quick ratio of AXL (1.43) is better than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.43 |
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%.
AXL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.64% yearly.
AXL shows a decrease in Revenue. In the last year, the revenue decreased by -6.02%.
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)-6.02%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%0.03%
3.2 Future
AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.48% yearly.
Based on estimates for the next years, AXL will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
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
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
Based on the Price/Earnings ratio of 15.70, the valuation of AXL can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as AXL.
Compared to an average S&P500 Price/Earnings ratio of 26.59, AXL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.26, the valuation of AXL can be described as very reasonable.
AXL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 71.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AXL to the average of the S&P500 Index (23.80), we can say AXL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 9.26 |
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.
98.78% 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 | 4.62 | ||
| EV/EBITDA | 3.67 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 21.46% in the coming years.
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 | N/A |
6.28
+0.27 (+4.49%)
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 Cap745.44M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price Target7.23 (15.13%)
Short Float %23.65%
Short Ratio8.47
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)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)-517.71%
EPS NY rev (1m)-11.5%
EPS NY rev (3m)-2.57%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 9.26 | ||
| P/S | 0.13 | ||
| P/FCF | 4.62 | ||
| P/OCF | 1.69 | ||
| P/B | 1.04 | ||
| P/tB | 5.02 | ||
| EV/EBITDA | 3.67 |
EPS(TTM)0.4
EY6.37%
EPS(NY)0.68
Fwd EY10.8%
FCF(TTM)1.36
FCFY21.64%
OCF(TTM)3.73
OCFY59.33%
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 | 1.51 |
F-Score8
WACC7.46%
ROIC/WACC0.67
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.