AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - NYSE:AXL - US0240611030 - Common Stock
5.83 USD
-0.38 (-6.12%)
5.9 USD
+0.07 (+1.2%)
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
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.
AXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXL's Return On Assets of 0.78% is on the low side compared to the rest of the industry. AXL is outperformed by 73.17% of its industry peers.
AXL has a worse Return On Equity (6.08%) than 60.98% 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.
The Average Return On Invested Capital over the past 3 years for AXL is below the industry average of 8.55%.
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
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.
Looking at the Operating Margin, with a value of 4.15%, AXL is doing worse than 71.95% of the companies in the same industry.
In the last couple of years the Operating Margin of AXL has declined.
AXL has a Gross Margin of 12.00%. This is amonst the worse of the industry: AXL underperforms 86.59% 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.
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.
Looking at the Altman-Z score, with a value of 1.52, AXL is doing worse than 80.49% of the companies in the same industry.
AXL has a debt to FCF ratio of 16.82. This is a negative value and a sign of low solvency as AXL would need 16.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.82, AXL is doing worse than 73.17% of the companies in the same industry.
A Debt/Equity ratio of 3.86 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 3.86, AXL is doing worse than 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.65
WACC7.32%
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 1.40 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
The Revenue has been growing slightly by 0.75% in the past 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)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
Based on estimates for the next years, AXL will show a small growth in Revenue. The Revenue will grow by 0.85% on average per year.
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.
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 14.57 indicates a correct valuation of AXL.
Compared to the rest of the industry, the Price/Earnings ratio of AXL is on the same level as its industry peers.
AXL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.07.
Based on the Price/Forward Earnings ratio of 8.65, the valuation of AXL can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXL indicates a somewhat cheap valuation: AXL is cheaper than 67.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, AXL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.58 | ||
| Fwd PE | 8.65 |
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.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.44 | ||
| 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
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.83
-0.38 (-6.12%)
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 Cap691.79M
Revenue(TTM)6.12B
Net Income(TTM)40.90M
Analysts69.23
Price Target6.97 (19.55%)
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 | 14.58 | ||
| Fwd PE | 8.65 | ||
| P/S | 0.12 | ||
| P/FCF | 4.44 | ||
| P/OCF | 1.56 | ||
| P/B | 1.03 | ||
| P/tB | 8.41 | ||
| EV/EBITDA | 3.96 |
EPS(TTM)0.4
EY6.86%
EPS(NY)0.67
Fwd EY11.56%
FCF(TTM)1.31
FCFY22.54%
OCF(TTM)3.73
OCFY63.98%
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
WACC7.32%
ROIC/WACC0.65
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.