AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
6.41 USD
-0.04 (-0.62%)
6.41 USD
0 (0%)
Overall AXL gets a fundamental rating of 3 out of 10. We evaluated AXL against 43 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.
The reported net income has been mixed in the past 5 years: AXL reported negative net income in multiple years.
Each year in the past 5 years AXL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AXL (0.75%) is comparable to the rest of the industry.
AXL's Return On Equity of 5.58% is fine compared to the rest of the industry. AXL outperforms 72.09% of its industry peers.
AXL has a Return On Invested Capital (4.97%) which is in line with 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 53.49% 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.
AXL's Operating Margin has declined in the last couple of years.
AXL's Gross Margin of 12.31% is on the low side compared to the rest of the industry. AXL is outperformed by 72.09% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXL is destroying value.
AXL has more shares outstanding than it did 1 year ago.
AXL has more shares outstanding than it did 5 years ago.
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.
The Altman-Z score of AXL (1.52) is worse than 62.79% 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.
AXL has a Debt to FCF ratio of 16.22. This is comparable to the rest of the industry: AXL outperforms 51.16% of its industry peers.
AXL has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.61, AXL is not doing good in the industry: 81.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.66
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.77 indicates that AXL should not have too much problems paying its short term obligations.
AXL's Current ratio of 1.77 is in line compared to the rest of the industry. AXL outperforms 44.19% of 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 69.77% 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
AXL shows a decrease in Revenue. In the last year, the revenue decreased by -6.02%.
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.
AXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.46% yearly.
EPS Next Y-15.93%
EPS Next 2Y14.08%
EPS Next 3Y20.6%
EPS Next 5Y30.48%
Revenue Next Year-4.56%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.43%
Revenue Next 5Y1.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 16.02, AXL is valued correctly.
Based on the Price/Earnings ratio, AXL is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. AXL is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.66 indicates a reasonable valuation of AXL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXL indicates a somewhat cheap valuation: AXL is cheaper than 74.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. AXL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaply inside the industry as 95.35% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaply inside the industry as 97.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.72 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 20.60% in the coming years.
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% |
6.41
-0.04 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners139.37%
Inst Owner Change13.09%
Ins Owners3.57%
Ins Owner Change0%
Market Cap760.87M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price Target7.53 (17.47%)
Short Float %25.17%
Short Ratio9.49
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)4.21%
PT rev (3m)15.29%
EPS NQ rev (1m)20.11%
EPS NQ rev (3m)-705.85%
EPS NY rev (1m)-8.88%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 9.66 | ||
| P/S | 0.13 | ||
| P/FCF | 4.72 | ||
| P/OCF | 1.72 | ||
| P/B | 1.06 | ||
| P/tB | 5.13 | ||
| EV/EBITDA | 3.73 |
EPS(TTM)0.4
EY6.24%
EPS(NY)0.66
Fwd EY10.35%
FCF(TTM)1.36
FCFY21.2%
OCF(TTM)3.73
OCFY58.13%
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
WACC7.48%
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-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-4.56%
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 16.02 and the Price/Book (PB) ratio is 1.06.
How financially healthy is AMERICAN AXLE & MFG HOLDINGS?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.