AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
6.57 USD
+0.04 (+0.61%)
6.55 USD
-0.02 (-0.3%)
We assign a fundamental rating of 3 out of 10 to AXL. 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 is valued correctly, 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.
The reported net income has been mixed in the past 5 years: AXL reported negative net income in multiple years.
In the past 5 years AXL always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.75%, AXL is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
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.
With a Return On Invested Capital value of 4.97%, 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 8.52%.
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
Looking at the Profit Margin, with a value of 0.69%, AXL is doing worse than 71.95% of the companies in the same industry.
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.
AXL's Operating Margin has declined in the last couple of years.
AXL has a worse Gross Margin (12.31%) than 86.59% of its industry peers.
In the last couple of years the Gross Margin of AXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| 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.
Compared to 1 year ago, AXL has more shares outstanding
Compared to 5 years ago, AXL has more shares outstanding
The debt/assets ratio for AXL has remained at the same level compared to a year ago.
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.
AXL has a Altman-Z score of 1.52. This is in the lower half of the industry: AXL underperforms 79.27% 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 doing worse than 73.17% of the companies in the same industry.
AXL has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AXL (3.61) is worse than 91.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.66
WACC7.5%
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.
Looking at the Current ratio, with a value of 1.77, AXL is doing worse than 76.83% of the companies in the same industry.
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
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.
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
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-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
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
The Price/Earnings ratio is 16.43, which indicates a correct valuation of AXL.
AXL's Price/Earnings is on the same level as the industry average.
AXL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.75, the valuation of AXL can be described as very 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.
The average S&P500 Price/Forward Earnings ratio is at 36.56. AXL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.43 | ||
| Fwd PE | 9.75 |
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.
AXL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AXL is cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.83 | ||
| EV/EBITDA | 3.76 |
4.3 Compensation for Growth
AXL's earnings are expected to grow with 28.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y28.52%
5. Dividend
5.1 Amount
No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.57
+0.04 (+0.61%)
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 Cap779.86M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price Target7.23 (10.05%)
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)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 | 16.43 | ||
| Fwd PE | 9.75 | ||
| P/S | 0.13 | ||
| P/FCF | 4.83 | ||
| P/OCF | 1.76 | ||
| P/B | 1.09 | ||
| P/tB | 5.26 | ||
| EV/EBITDA | 3.76 |
EPS(TTM)0.4
EY6.09%
EPS(NY)0.67
Fwd EY10.26%
FCF(TTM)1.36
FCFY20.68%
OCF(TTM)3.73
OCFY56.72%
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
WACC7.5%
ROIC/WACC0.66
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.