AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
6.34 USD
-0.3 (-4.52%)
6.34 USD
0 (0%)
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. 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
AXL had positive earnings in the past year.
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.
Each year in the past 5 years AXL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AXL (0.75%) is worse than 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.
AXL's Return On Invested Capital of 4.97% is on the low side compared to the rest of the industry. AXL is outperformed by 73.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXL is below the industry average of 8.52%.
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
AXL has a Profit Margin of 0.69%. This is in the lower half of the industry: AXL underperforms 71.95% of its industry peers.
AXL's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of AXL has declined.
With a Gross Margin value of 12.31%, 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 | 4.39% | ||
| 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
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.
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
Based on the Altman-Z score of 1.52, 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 1.52, AXL is doing worse than 79.27% of the companies in the same industry.
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 has a worse Debt to FCF ratio (16.22) than 73.17% of its industry peers.
A Debt/Equity ratio of 3.61 is on the high side and indicates that AXL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.61, AXL is doing worse than 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.67
WACC7.45%
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 Current ratio of 1.77. This is in the lower half of the industry: AXL underperforms 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.
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.
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 -6.02% in the last year.
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
The Earnings Per Share is expected to grow by 30.48% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.46% on average over the next years.
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 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
The Price/Earnings ratio is 15.85, which indicates a correct valuation of AXL.
AXL's Price/Earnings ratio is in line with the industry average.
AXL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.41, 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 67.07% of the companies in the same industry.
AXL is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaply inside the industry as 84.15% 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 | 4.67 | ||
| EV/EBITDA | 3.77 |
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 |
6.34
-0.3 (-4.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners123.58%
Inst Owner Change13.09%
Ins Owners3.57%
Ins Owner Change0%
Market Cap752.56M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price Target7.23 (14.04%)
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)10.64%
PT rev (3m)17.51%
EPS NQ rev (1m)-281.61%
EPS NQ rev (3m)-517.71%
EPS NY rev (1m)0%
EPS NY rev (3m)10.09%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.13 | ||
| P/FCF | 4.67 | ||
| P/OCF | 1.7 | ||
| P/B | 1.05 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 3.77 |
EPS(TTM)0.4
EY6.31%
EPS(NY)0.67
Fwd EY10.63%
FCF(TTM)1.36
FCFY21.43%
OCF(TTM)3.73
OCFY58.77%
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
WACC7.45%
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-7.74%
EPS Next 2Y14.97%
EPS Next 3Y28.52%
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-4.46%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.42%
Revenue Next 5Y1.46%
EBIT growth 1Y-3.21%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year179.35%
EBIT Next 3Y52.39%
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.