AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AXL • US0240611030
7.98 USD
+0.01 (+0.13%)
At close: Feb 2, 2026
8.09 USD
+0.11 (+1.38%)
After Hours: 2/2/2026, 7:45:41 PM
AXL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. While AXL is still in line with the averages on profitability rating, there are concerns on its financial health. AXL has a valuation in line with the averages, 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.
- In multiple years AXL reported negative net income over the last 5 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 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- AXL's Return On Equity of 5.58% is fine compared to the rest of the industry. AXL outperforms 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.
- AXL had an Average Return On Invested Capital over the past 3 years of 4.62%. This is below the industry average of 9.05%.
- 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
- AXL has a Profit Margin (0.69%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of AXL has grown nicely.
- 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 worse Gross Margin (12.31%) than 73.81% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXL is destroying value.
- The number of shares outstanding for AXL has been increased compared to 1 year ago.
- 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
- 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 66.67% of its industry peers.
- 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 Debt to FCF ratio of 16.22. This is comparable 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.
- 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
WACC7.93%
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.
- 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
- AXL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.67%.
- 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
- AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.48% yearly.
- 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.
- 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
- AXL is valuated rather expensively with a Price/Earnings ratio of 19.95.
- AXL's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.41. AXL is valued slightly cheaper when compared to this.
- AXL is valuated correctly with a Price/Forward Earnings ratio of 12.46.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AXL is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.64. AXL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaply inside the industry as 92.86% 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 | 5.87 | ||
| EV/EBITDA | 3.99 |
4.3 Compensation for Growth
- AXL's earnings are expected to grow with 22.31% in the coming years. This may justify a more expensive valuation.
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.