AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
NYSE:AXL - New York Stock Exchange, Inc. - US0240611030 - Common Stock - Currency: USD
AXL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. AXL may be in some trouble as it scores bad on both profitability and health. AXL may be a bit undervalued, certainly considering the very reasonable score on growth
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.
AXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.67%, AXL is doing worse than 71.60% of the companies in the same industry.
The Return On Equity of AXL (6.01%) is worse than 66.67% of its industry peers.
With a Return On Invested Capital value of 5.52%, AXL is not doing good in the industry: 72.84% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for AXL is below the industry average of 8.98%.
The 3 year average ROIC (4.62%) for AXL is below the current ROIC(5.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 6.01% | ||
| ROIC | 5.52% |
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 0.55%, AXL is doing worse than 70.37% of the companies in the same industry.
AXL's Profit Margin has improved in the last couple of years.
AXL has a Operating Margin of 4.43%. This is in the lower half of the industry: AXL underperforms 70.37% of its industry peers.
In the last couple of years the Operating Margin of AXL has declined.
With a Gross Margin value of 12.10%, AXL is not doing good in the industry: 83.95% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.43% | ||
| PM (TTM) | 0.55% | ||
| GM | 12.1% |
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.
The number of shares outstanding for AXL has been increased compared to 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 1.55. This is a bad value and indicates that AXL is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.55, AXL is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
AXL has a debt to FCF ratio of 12.85. This is a negative value and a sign of low solvency as AXL would need 12.85 years to pay back of all of its debts.
AXL has a worse Debt to FCF ratio (12.85) than 72.84% of its industry peers.
AXL has a Debt/Equity ratio of 4.58. This is a high value indicating a heavy dependency on external financing.
AXL's Debt to Equity ratio of 4.58 is on the low side compared to the rest of the industry. AXL is outperformed by 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.58 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.82
WACC6.7%
2.3 Liquidity
A Current Ratio of 1.63 indicates that AXL should not have too much problems paying its short term obligations.
AXL has a Current ratio of 1.63. This is in the lower half of the industry: AXL underperforms 79.01% of its industry peers.
A Quick Ratio of 1.25 indicates that AXL should not have too much problems paying its short term obligations.
AXL has a better Quick ratio (1.25) than 76.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
AXL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 666.67%, which is quite impressive.
The earnings per share for AXL have been decreasing by -20.64% on average. This is quite bad
AXL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.75%.
AXL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.28% yearly.
EPS 1Y (TTM)666.67%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%33.33%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-5.62%
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 0.80% on average over the next years.
EPS Next Y2.96%
EPS Next 2Y14.79%
EPS Next 3Y19.25%
EPS Next 5Y25.47%
Revenue Next Year-4.46%
Revenue Next 2Y-2.12%
Revenue Next 3Y-1.33%
Revenue Next 5Y0.8%
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 7.37, the valuation of AXL can be described as very cheap.
75.31% of the companies in the same industry are more expensive than AXL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.87, AXL is valued rather cheaply.
AXL is valuated cheaply with a Price/Forward Earnings ratio of 7.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXL indicates a somewhat cheap valuation: AXL is cheaper than 70.37% of the companies listed in the same industry.
AXL is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXL is valued a bit cheaper than the industry average as 79.01% 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 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.18 | ||
| EV/EBITDA | 3.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AXL's earnings are expected to grow with 19.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.49
PEG (5Y)N/A
EPS Next 2Y14.79%
EPS Next 3Y19.25%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.76
+0.03 (+0.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change0.52%
Ins Owners3.2%
Ins Owner Change15.54%
Market Cap444.92M
Analysts52
Price Target5.26 (39.89%)
Short Float %11.15%
Short Ratio4.39
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)269.57%
Min EPS beat(2)35.03%
Max EPS beat(2)504.12%
EPS beat(4)4
Avg EPS beat(4)344.92%
Min EPS beat(4)35.03%
Max EPS beat(4)769.36%
EPS beat(8)7
Avg EPS beat(8)99.62%
EPS beat(12)10
Avg EPS beat(12)64.18%
EPS beat(16)13
Avg EPS beat(16)243.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-0.93%
Revenue beat(4)2
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)4.34%
Revenue beat(8)4
Avg Revenue beat(8)0.79%
Revenue beat(12)7
Avg Revenue beat(12)1.52%
Revenue beat(16)10
Avg Revenue beat(16)2.08%
PT rev (1m)-21.66%
PT rev (3m)-29.9%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-50%
EPS NY rev (1m)-3.7%
EPS NY rev (3m)7.81%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 7.16 | ||
| P/S | 0.07 | ||
| P/FCF | 2.18 | ||
| P/OCF | 0.98 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.4 |
EPS(TTM)0.51
EY13.56%
EPS(NY)0.53
Fwd EY13.96%
FCF(TTM)1.73
FCFY45.92%
OCF(TTM)3.85
OCFY102.36%
SpS51.76
BVpS4.76
TBVpS-0.56
PEG (NY)2.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 6.01% | ||
| ROCE | 6.99% | ||
| ROIC | 5.52% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 7.93% | ||
| OM | 4.43% | ||
| PM (TTM) | 0.55% | ||
| GM | 12.1% | ||
| FCFM | 3.34% |
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-Score8
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.58 | ||
| Debt/FCF | 12.85 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 53.46% | ||
| Cap/Sales | 4.1% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 61.45% | ||
| Profit Quality | 604.44% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.55 |
F-Score8
WACC6.7%
ROIC/WACC0.82
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)666.67%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%33.33%
EPS Next Y2.96%
EPS Next 2Y14.79%
EPS Next 3Y19.25%
EPS Next 5Y25.47%
Revenue 1Y (TTM)0.75%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-5.62%
Revenue Next Year-4.46%
Revenue Next 2Y-2.12%
Revenue Next 3Y-1.33%
Revenue Next 5Y0.8%
EBIT growth 1Y57.97%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year182.29%
EBIT Next 3Y40.13%
EBIT Next 5Y24.09%
FCF growth 1Y2.46%
FCF growth 3Y-16.99%
FCF growth 5Y10.25%
OCF growth 1Y14.97%
OCF growth 3Y-5.43%
OCF growth 5Y-4.04%