AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AXL • US0240611030
7.98 USD
-0.1 (-1.24%)
Last: Jan 30, 2026, 02:18 PM
Overall AXL gets a fundamental rating of 3 out of 10. We evaluated AXL against 42 industry peers in the Automobile Components industry. There are concerns on the financial health of AXL while its profitability can be described as average. 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.
- In the past year AXL had a positive cash flow from operations.
- In multiple years AXL reported negative net income over the last 5 years.
- AXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AXL's Return On Assets of 0.75% is in line compared to the rest of the industry. AXL outperforms 50.00% of its industry peers.
- AXL has a better Return On Equity (5.58%) than 71.43% of its industry peers.
- AXL's Return On Invested Capital of 4.97% is in line compared to the rest of the industry. AXL outperforms 50.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AXL is below the industry average of 9.10%.
- The 3 year average ROIC (4.62%) for AXL is below the current ROIC(4.97%), indicating increased profibility in the last year.
| 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 in line with its industry, outperforming 52.38% of the companies in the same industry.
- AXL's Profit Margin has improved in the last couple of years.
- AXL has a Operating Margin (4.39%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of AXL has declined.
- AXL has a Gross Margin of 12.31%. This is in the lower half of the industry: AXL underperforms 73.81% of its industry peers.
- AXL's Gross Margin has declined in the last couple of years.
| 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
- Compared to 5 years ago, AXL has more shares outstanding
- Compared to 1 year ago, AXL has about the same debt to assets ratio.
2.2 Solvency
- AXL has an Altman-Z score of 1.54. This is a bad value and indicates that AXL is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.54, AXL is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
- 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 in line compared to the rest of the industry. AXL outperforms 50.00% 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.
- With a Debt to Equity ratio value of 3.61, AXL is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.62
WACC7.95%
2.3 Liquidity
- A Current Ratio of 1.77 indicates that AXL should not have too much problems paying its short term obligations.
- AXL has a Current ratio of 1.77. This is comparable to the rest of the industry: AXL outperforms 47.62% 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 71.43% 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.
- Looking at the last year, AXL shows a decrease in Revenue. The Revenue has decreased by -6.02% 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)-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.
- The Revenue is expected to grow by 1.46% on average over the next years.
EPS Next Y-15.19%
EPS Next 2Y12.08%
EPS Next 3Y22.31%
EPS Next 5Y30.48%
Revenue Next Year-4.45%
Revenue Next 2Y-1.82%
Revenue Next 3Y-0.24%
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.
- 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 19.95 indicates a rather expensive 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 28.39.
- With a Price/Forward Earnings ratio of 12.46, AXL is valued correctly.
- AXL's Price/Forward Earnings is on the same level as the industry average.
- AXL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXL indicates a rather cheap valuation: AXL is cheaper than 92.86% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, AXL is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 4.01 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as AXL's earnings are expected to grow with 22.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.08%
EPS Next 3Y22.31%
5. Dividend
5.1 Amount
- No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 for AXL stock?
ChartMill assigns a valuation rating of 5 / 10 to AMERICAN AXLE & MFG HOLDINGS (AXL). This can be considered as Fairly Valued.
What is the profitability of AXL stock?
AMERICAN AXLE & MFG HOLDINGS (AXL) has a profitability rating of 4 / 10.
What is the valuation of AMERICAN AXLE & MFG HOLDINGS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN AXLE & MFG HOLDINGS (AXL) is 19.95 and the Price/Book (PB) ratio is 1.32.
How financially healthy is AMERICAN AXLE & MFG HOLDINGS?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.