AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
NYSE:AXL - New York Stock Exchange, Inc. - US0240611030 - Common Stock - Currency: USD
Overall AXL gets a fundamental rating of 3 out of 10. We evaluated AXL against 80 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.
In the past year AXL had a positive cash flow from operations.
In multiple years AXL reported negative net income over the last 5 years.
Each year in the past 5 years AXL had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.40%, AXL is not doing good in the industry: 73.75% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 3.47%, AXL is doing worse than 71.25% of the companies in the same industry.
The Return On Invested Capital of AXL (5.08%) is worse than 77.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXL is below the industry average of 8.70%.
The 3 year average ROIC (4.62%) for AXL is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 3.47% | ||
| ROIC | 5.08% |
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's Profit Margin of 0.35% is on the low side compared to the rest of the industry. AXL is outperformed by 73.75% of its industry peers.
In the last couple of years the Profit Margin of AXL has grown nicely.
With a Operating Margin value of 4.29%, AXL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
AXL's Operating Margin has declined in the last couple of years.
AXL has a worse Gross Margin (12.09%) than 86.25% of its industry peers.
AXL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 0.35% | ||
| GM | 12.09% |
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.
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.
AXL has a Altman-Z score of 1.52. This is amonst the worse of the industry: AXL underperforms 82.50% of its industry peers.
The Debt to FCF ratio of AXL is 11.90, which is on the high side as it means it would take AXL, 11.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.90, AXL is doing worse than 73.75% of the companies in the same industry.
AXL has a Debt/Equity ratio of 4.38. This is a high value indicating a heavy dependency on external financing.
AXL's Debt to Equity ratio of 4.38 is on the low side compared to the rest of the industry. AXL is outperformed by 92.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.73
WACC6.95%
2.3 Liquidity
AXL has a Current Ratio of 1.72. 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 Current ratio of 1.72. This is amonst the worse of the industry: AXL underperforms 81.25% of its industry peers.
AXL has a Quick Ratio of 1.35. This is a normal value and indicates that AXL is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.35, AXL is doing good in the industry, outperforming 73.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 320.00% over the past year.
Measured over the past years, AXL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.64% on average per year.
Looking at the last year, AXL shows a decrease in Revenue. The Revenue has decreased by -4.25% in the last year.
The Revenue has been decreasing by -1.28% on average over the past years.
EPS 1Y (TTM)320%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%-50%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-12.17%
3.2 Future
AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.47% yearly.
The Revenue is expected to grow by 0.85% on average over the next years.
EPS Next Y-31.85%
EPS Next 2Y0.09%
EPS Next 3Y19.29%
EPS Next 5Y25.47%
Revenue Next Year-4.98%
Revenue Next 2Y-2.67%
Revenue Next 3Y-0.84%
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.
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
With a Price/Earnings ratio of 10.90, the valuation of AXL can be described as very reasonable.
AXL's Price/Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 71.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, AXL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.96, the valuation of AXL can be described as reasonable.
Based on the Price/Forward Earnings ratio, AXL is valued a bit cheaper than 62.50% of the companies in the same industry.
AXL is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXL indicates a rather cheap valuation: AXL is cheaper than 82.50% of the companies listed in the same industry.
AXL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AXL is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.46 | ||
| EV/EBITDA | 3.62 |
4.3 Compensation for Growth
AXL's earnings are expected to grow with 19.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.09%
EPS Next 3Y19.29%
5. Dividend
5.1 Amount
No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.58
+0.08 (+1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners110.77%
Inst Owner Change-0.11%
Ins Owners3.58%
Ins Owner Change19.09%
Market Cap542.00M
Analysts52
Price Target5.67 (23.8%)
Short Float %18.52%
Short Ratio6.55
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)131.01%
Min EPS beat(2)35.03%
Max EPS beat(2)227.01%
EPS beat(4)4
Avg EPS beat(4)209.34%
Min EPS beat(4)35.03%
Max EPS beat(4)504.12%
EPS beat(8)7
Avg EPS beat(8)117.4%
EPS beat(12)10
Avg EPS beat(12)24.24%
EPS beat(16)13
Avg EPS beat(16)248.79%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-1.37%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)2.08%
Revenue beat(8)4
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.81%
Revenue beat(16)9
Avg Revenue beat(16)1.44%
PT rev (1m)6.87%
PT rev (3m)7.76%
EPS NQ rev (1m)6.75%
EPS NQ rev (3m)-23.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.8%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)2.63%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.09 | ||
| P/FCF | 2.46 | ||
| P/OCF | 1.1 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.62 |
EPS(TTM)0.42
EY9.17%
EPS(NY)0.51
Fwd EY11.16%
FCF(TTM)1.86
FCFY40.61%
OCF(TTM)4.17
OCFY91.05%
SpS50.1
BVpS5.04
TBVpS-0.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 3.47% | ||
| ROCE | 6.43% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.9% | ||
| ROICexgc | 7.18% | ||
| OM | 4.29% | ||
| PM (TTM) | 0.35% | ||
| GM | 12.09% | ||
| FCFM | 3.71% |
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%
ROICexcg growth 3Y2.99%
ROICexcg 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-Score9
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 11.9 | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 58.91% | ||
| Cap/Sales | 4.61% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 68.69% | ||
| Profit Quality | 1063.29% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.52 |
F-Score9
WACC6.95%
ROIC/WACC0.73
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)320%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%-50%
EPS Next Y-31.85%
EPS Next 2Y0.09%
EPS Next 3Y19.29%
EPS Next 5Y25.47%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-12.17%
Revenue Next Year-4.98%
Revenue Next 2Y-2.67%
Revenue Next 3Y-0.84%
Revenue Next 5Y0.85%
EBIT growth 1Y20.87%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year173.54%
EBIT Next 3Y40.74%
EBIT Next 5Y25.13%
FCF growth 1Y0.46%
FCF growth 3Y-16.99%
FCF growth 5Y10.25%
OCF growth 1Y19.64%
OCF growth 3Y-5.43%
OCF growth 5Y-4.04%