AMERICAN AXLE & MFG HOLDINGS (AXL)

US0240611030 - Common Stock

6.92  +0.12 (+1.76%)

After market: 6.93 +0.01 (+0.14%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AXL. AXL was compared to 43 industry peers in the Automobile Components industry. AXL has a bad profitability rating. Also its financial health evaluation is rather negative. AXL has a valuation in line with the averages, but on the other hand it scores bad on growth.



3

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

AXL has a Return On Assets (-0.16%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -1.38%, AXL is in line with its industry, outperforming 40.48% of the companies in the same industry.
The Return On Invested Capital of AXL (4.02%) is comparable to the rest of the industry.
AXL had an Average Return On Invested Capital over the past 3 years of 4.46%. This is below the industry average of 9.35%.
Industry RankSector Rank
ROA -0.16%
ROE -1.38%
ROIC 4.02%
ROA(3y)0.2%
ROA(5y)-3.24%
ROE(3y)1.84%
ROE(5y)-39.11%
ROIC(3y)4.46%
ROIC(5y)4.5%

1.3 Margins

The Operating Margin of AXL (3.40%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AXL has declined.
With a Gross Margin value of 10.69%, AXL is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AXL has declined.
Industry RankSector Rank
OM 3.4%
PM (TTM) N/A
GM 10.69%
OM growth 3Y-9.93%
OM growth 5Y-20.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.02%
GM growth 5Y-8.12%

3

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 been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.51, we must say that AXL is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.51, AXL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of AXL is 15.02, which is on the high side as it means it would take AXL, 15.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AXL (15.02) is comparable to the rest of the industry.
AXL has a Debt/Equity ratio of 4.40. This is a high value indicating a heavy dependency on external financing.
AXL has a Debt to Equity ratio of 4.40. This is amonst the worse of the industry: AXL underperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.4
Debt/FCF 15.02
Altman-Z 1.51
ROIC/WACC0.55
WACC7.35%

2.3 Liquidity

AXL has a Current Ratio of 1.69. This is a normal value and indicates that AXL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AXL (1.69) is comparable to the rest of the industry.
A Quick Ratio of 1.31 indicates that AXL should not have too much problems paying its short term obligations.
The Quick ratio of AXL (1.31) is better than 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.69
Quick Ratio 1.31

3

3. Growth

3.1 Past

The earnings per share for AXL have decreased strongly by -75.61% in the last year.
AXL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.67%.
The Revenue has been decreasing by -3.51% on average over the past years.
EPS 1Y (TTM)-75.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1900%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y8.87%
Revenue growth 5Y-3.51%
Sales Q2Q%7.56%

3.2 Future

AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 123.57% yearly.
The Revenue is expected to grow by 1.45% on average over the next years.
EPS Next Y520.46%
EPS Next 2Y200.07%
EPS Next 3Y123.57%
EPS Next 5YN/A
Revenue Next Year3.64%
Revenue Next 2Y2.04%
Revenue Next 3Y1.45%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 69.20, the valuation of AXL can be described as expensive.
Based on the Price/Earnings ratio, AXL is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
AXL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.63.
A Price/Forward Earnings ratio of 10.98 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 64.29% of the companies listed in the same industry.
AXL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.22.
Industry RankSector Rank
PE 69.2
Fwd PE 10.98

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 85.71% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXL indicates a rather cheap valuation: AXL is cheaper than 95.24% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.43
EV/EBITDA 4.47

4.3 Compensation for Growth

AXL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AXL's earnings are expected to grow with 123.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y200.07%
EPS Next 3Y123.57%

0

5. Dividend

5.1 Amount

No dividends for AXL!.
Industry RankSector Rank
Dividend Yield N/A

AMERICAN AXLE & MFG HOLDINGS

NYSE:AXL (6/21/2024, 7:04:00 PM)

After market: 6.93 +0.01 (+0.14%)

6.92

+0.12 (+1.76%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap813.45M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 69.2
Fwd PE 10.98
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.13
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.16%
ROE -1.38%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.4%
PM (TTM) N/A
GM 10.69%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.15
Health
Industry RankSector Rank
Debt/Equity 4.4
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.69
Quick Ratio 1.31
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-75.61%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y520.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.67%
Revenue growth 3Y8.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y