AMERICAN AXLE & MFG HOLDINGS (AXL)
US0240611030 - Common Stock
AXL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 41 industry peers in the Automobile Components industry. AXL may be in some trouble as it scores bad on both profitability and health. AXL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
AXL had negative 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.
Each year in the past 5 years AXL had a positive operating cash flow.
1.2 Ratios
AXL has a Return On Assets of -0.02%. This is comparable to the rest of the industry: AXL outperforms 48.78% of its industry peers.
AXL's Return On Equity of -0.21% is in line compared to the rest of the industry. AXL outperforms 48.78% of its industry peers.
AXL has a Return On Invested Capital of 3.58%. This is in the lower half of the industry: AXL underperforms 60.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AXL is significantly below the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.21% | ||
| ROIC | 3.58% |
ROA(3y)-2.75%
ROA(5y)-3.26%
ROE(3y)-46.81%
ROE(5y)-38.77%
ROIC(3y)4.34%
ROIC(5y)5.53%
1.3 Margins
In the last couple of years the Profit Margin of AXL has declined.
Looking at the Operating Margin, with a value of 3.19%, AXL is in line with its industry, outperforming 43.90% of the companies in the same industry.
AXL's Operating Margin has declined in the last couple of years.
AXL has a worse Gross Margin (10.59%) than 75.61% of its industry peers.
AXL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.19% | ||
| PM (TTM) | N/A | ||
| GM | 10.59% |
OM growth 3Y-11.33%
OM growth 5Y-14.65%
PM growth 3YN/A
PM growth 5Y-27.39%
GM growth 3Y-4.21%
GM growth 5Y-7.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXL is destroying value.
Compared to 1 year ago, AXL has more shares outstanding
AXL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AXL has an improved debt to assets ratio.
2.2 Solvency
AXL has an Altman-Z score of 1.45. This is a bad value and indicates that AXL is not financially healthy and even has some risk of bankruptcy.
AXL's Altman-Z score of 1.45 is on the low side compared to the rest of the industry. AXL is outperformed by 73.17% of its industry peers.
AXL has a debt to FCF ratio of 9.67. This is a negative value and a sign of low solvency as AXL would need 9.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.67, AXL is in line with its industry, outperforming 51.22% of the companies in the same industry.
AXL has a Debt/Equity ratio of 4.62. This is a high value indicating a heavy dependency on external financing.
AXL's Debt to Equity ratio of 4.62 is on the low side compared to the rest of the industry. AXL is outperformed by 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.62 | ||
| Debt/FCF | 9.67 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.52
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.71 indicates that AXL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.71, AXL perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that AXL should not have too much problems paying its short term obligations.
AXL's Quick ratio of 1.34 is fine compared to the rest of the industry. AXL outperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for AXL have decreased strongly by -111.86% in the last year.
AXL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.53% yearly.
Looking at the last year, AXL shows a small growth in Revenue. The Revenue has grown by 6.46% in the last year.
Measured over the past years, AXL shows a decrease in Revenue. The Revenue has been decreasing by -1.53% on average per year.
EPS 1Y (TTM)-111.86%
EPS 3Y-27.79%
EPS 5Y-30.53%
EPS growth Q2Q-140.74%
Revenue 1Y (TTM)6.46%
Revenue growth 3Y-3.87%
Revenue growth 5Y-1.53%
Revenue growth Q2Q1.09%
3.2 Future
AXL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.94% yearly.
The Revenue is expected to grow by 2.21% on average over the next years.
EPS Next Y-70.57%
EPS Next 2Y9.76%
EPS Next 3Y13.28%
EPS Next 5Y19.94%
Revenue Next Year3.5%
Revenue Next 2Y3.47%
Revenue Next 3Y1.93%
Revenue Next 5Y2.21%
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 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
AXL is valuated reasonably with a Price/Forward Earnings ratio of 10.34.
AXL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 73.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.91. AXL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.34 |
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 87.80% 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 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.01 | ||
| EV/EBITDA | 4.57 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 13.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.76%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMERICAN AXLE & MFG HOLDINGS
NYSE:AXL (12/6/2023, 11:50:08 AM)
7.6
+0.13 (+1.74%)
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 Cap889.66M
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.34 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.19% | ||
| PM (TTM) | N/A | ||
| GM | 10.59% | ||
| 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 Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.34 | ||
| 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)
Growth
EPS 1Y (TTM)-111.86%
EPS 3Y-27.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y-70.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.46%
Revenue growth 3Y-3.87%
Revenue growth 5Y
Revenue growth 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