AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
7.74 USD
+0.04 (+0.52%)
7.74 USD
0 (0%)
AXL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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.
- AXL had a positive operating cash flow in the past year.
- 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.
- With a decent Return On Equity value of 5.58%, AXL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- AXL has a Return On Invested Capital of 4.97%. This is comparable to the rest of the industry: AXL outperforms 50.00% 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 9.10%.
- 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
- 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.
- In the last couple of years the Profit Margin of AXL has grown nicely.
- AXL has a Operating Margin (4.39%) which is comparable to the rest of the industry.
- AXL's Operating Margin has declined in the last couple of years.
- The Gross Margin of AXL (12.31%) is worse than 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
- AXL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for AXL has been increased compared to 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
- Based on the Altman-Z score of 1.54, we must say that AXL is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AXL (1.54) is worse than 64.29% of its industry peers.
- AXL has a debt to FCF ratio of 16.22. This is a negative value and a sign of low solvency as AXL would need 16.22 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 16.22, AXL is in line with its industry, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 3.61 is on the high side and indicates that AXL has dependencies on debt financing.
- AXL has a worse Debt to Equity ratio (3.61) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.63
WACC7.86%
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 (1.77) which is in line with its industry peers.
- AXL has a Quick Ratio of 1.43. This is a normal value and indicates that AXL is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of AXL (1.43) is better than 71.43% 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%.
- The Revenue has been decreasing by -1.28% on average over the past years.
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-15.93%
EPS Next 2Y14.08%
EPS Next 3Y20.6%
EPS Next 5Y30.48%
Revenue Next Year-4.53%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.43%
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 19.35, the valuation of AXL can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as AXL.
- AXL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.66, the valuation of AXL can be described as reasonable.
- Based on the Price/Forward Earnings ratio, AXL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. AXL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, AXL is valued cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.7 | ||
| EV/EBITDA | 3.95 |
4.3 Compensation for Growth
- AXL's earnings are expected to grow with 20.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.08%
EPS Next 3Y20.6%
5. Dividend
5.1 Amount
- AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.74
+0.04 (+0.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-12 2026-02-12/amc
Inst Owners140.17%
Inst Owner Change0.07%
Ins Owners3.57%
Ins Owner Change0%
Market Cap918.74M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts70
Price Target7.61 (-1.68%)
Short Float %25.11%
Short Ratio10.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)5.21%
PT rev (3m)16.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-362.53%
EPS NY rev (1m)2.96%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 11.66 | ||
| P/S | 0.16 | ||
| P/FCF | 5.7 | ||
| P/OCF | 2.08 | ||
| P/B | 1.28 | ||
| P/tB | 6.19 | ||
| EV/EBITDA | 3.95 |
EPS(TTM)0.4
EY5.17%
EPS(NY)0.66
Fwd EY8.58%
FCF(TTM)1.36
FCFY17.56%
OCF(TTM)3.73
OCFY48.14%
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 | 1.54 |
F-Score8
WACC7.86%
ROIC/WACC0.63
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-15.93%
EPS Next 2Y14.08%
EPS Next 3Y20.6%
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-4.53%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.43%
Revenue Next 5Y1.46%
EBIT growth 1Y-3.21%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year186.93%
EBIT Next 3Y43.59%
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 for AXL stock?
ChartMill assigns a valuation rating of 6 / 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 19.35 and the Price/Book (PB) ratio is 1.28.
How financially healthy is AMERICAN AXLE & MFG HOLDINGS?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.