AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
NYSE:AXL - US0240611030 - Common Stock
6.01 USD
+0.11 (+1.86%)
6.05 USD
+0.04 (+0.67%)
Taking everything into account, AXL scores 3 out of 10 in our fundamental rating. AXL was compared to 80 industry peers in the Automobile Components industry. AXL may be in some trouble as it scores bad on both profitability and health. AXL is not valued too expensively and it also shows a decent growth rate.
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.
In multiple years AXL reported negative net income over the last 5 years.
AXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXL has a Return On Assets of 0.78%. This is in the lower half of the industry: AXL underperforms 73.75% of its industry peers.
AXL's Return On Equity of 6.08% is on the low side compared to the rest of the industry. AXL is outperformed by 66.25% of its industry peers.
AXL has a Return On Invested Capital of 4.73%. This is in the lower half of the industry: AXL underperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXL is below the industry average of 8.49%.
The 3 year average ROIC (4.62%) for AXL is below the current ROIC(4.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 6.08% | ||
| ROIC | 4.73% |
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 0.70%, AXL is doing worse than 73.75% of the companies in the same industry.
In the last couple of years the Profit Margin of AXL has grown nicely.
The Operating Margin of AXL (4.15%) is worse than 73.75% of its industry peers.
AXL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.00%, AXL is not doing good in the industry: 87.50% 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 | 4.15% | ||
| PM (TTM) | 0.7% | ||
| GM | 12% |
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.
Compared to 1 year ago, AXL has more shares outstanding
Compared to 5 years ago, AXL has more shares outstanding
Compared to 1 year ago, AXL has about the same debt to assets ratio.
2.2 Solvency
AXL has an Altman-Z score of 1.51. 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 1.51, AXL is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
AXL has a debt to FCF ratio of 16.82. This is a negative value and a sign of low solvency as AXL would need 16.82 years to pay back of all of its debts.
With a Debt to FCF ratio value of 16.82, AXL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
AXL has a Debt/Equity ratio of 3.86. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.86, AXL is doing worse than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.64
WACC7.39%
2.3 Liquidity
AXL has a Current Ratio of 1.77. 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 (1.77) is worse than 78.75% of its industry peers.
A Quick Ratio of 1.40 indicates that AXL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, AXL belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
AXL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 158.82%, which is quite impressive.
AXL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.64% yearly.
The Revenue has decreased by -6.73% in the past year.
AXL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.28% yearly.
EPS 1Y (TTM)158.82%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%10.53%
Revenue 1Y (TTM)-6.73%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-5.89%
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 25.47% on average per year.
Based on estimates for the next years, AXL will show a small growth in Revenue. The Revenue will grow by 0.85% on average per year.
EPS Next Y-16.2%
EPS Next 2Y12.77%
EPS Next 3Y27.92%
EPS Next 5Y25.47%
Revenue Next Year-4.8%
Revenue Next 2Y-2.44%
Revenue Next 3Y-0.45%
Revenue Next 5Y0.85%
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
AXL is valuated correctly with a Price/Earnings ratio of 13.66.
AXL's Price/Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 66.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.14, AXL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.27, the valuation of AXL can be described as very reasonable.
66.25% of the companies in the same industry are more expensive than AXL, based on the Price/Forward Earnings ratio.
AXL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
AXL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AXL is cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.57 | ||
| EV/EBITDA | 3.92 |
4.3 Compensation for Growth
AXL's earnings are expected to grow with 27.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.77%
EPS Next 3Y27.92%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.01
+0.11 (+1.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners115.07%
Inst Owner Change14.33%
Ins Owners3.58%
Ins Owner Change19.09%
Market Cap713.15M
Analysts68.33
Price Target6.15 (2.33%)
Short Float %22.32%
Short Ratio6.91
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)129.2%
Min EPS beat(2)31.39%
Max EPS beat(2)227.01%
EPS beat(4)4
Avg EPS beat(4)199.39%
Min EPS beat(4)31.39%
Max EPS beat(4)504.12%
EPS beat(8)7
Avg EPS beat(8)116.55%
EPS beat(12)10
Avg EPS beat(12)17.37%
EPS beat(16)13
Avg EPS beat(16)200.14%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-0.93%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)5
Avg Revenue beat(12)0.16%
Revenue beat(16)8
Avg Revenue beat(16)0.59%
PT rev (1m)8.53%
PT rev (3m)14.41%
EPS NQ rev (1m)23.04%
EPS NQ rev (3m)-18.15%
EPS NY rev (1m)22.96%
EPS NY rev (3m)-5.01%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 9.27 | ||
| P/S | 0.12 | ||
| P/FCF | 4.57 | ||
| P/OCF | 1.61 | ||
| P/B | 1.06 | ||
| P/tB | 8.67 | ||
| EV/EBITDA | 3.92 |
EPS(TTM)0.44
EY7.32%
EPS(NY)0.65
Fwd EY10.79%
FCF(TTM)1.31
FCFY21.86%
OCF(TTM)3.73
OCFY62.06%
SpS49.16
BVpS5.67
TBVpS0.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 6.08% | ||
| ROCE | 5.99% | ||
| ROIC | 4.73% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 6.67% | ||
| OM | 4.15% | ||
| PM (TTM) | 0.7% | ||
| GM | 12% | ||
| FCFM | 2.67% |
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 62.6% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | 63.2% | ||
| Profit Quality | 381.17% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.51 |
F-Score8
WACC7.39%
ROIC/WACC0.64
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)158.82%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%10.53%
EPS Next Y-16.2%
EPS Next 2Y12.77%
EPS Next 3Y27.92%
EPS Next 5Y25.47%
Revenue 1Y (TTM)-6.73%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-5.89%
Revenue Next Year-4.8%
Revenue Next 2Y-2.44%
Revenue Next 3Y-0.45%
Revenue Next 5Y0.85%
EBIT growth 1Y2.58%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year174.36%
EBIT Next 3Y41.41%
EBIT Next 5Y25.13%
FCF growth 1Y-23.47%
FCF growth 3Y-16.99%
FCF growth 5Y10.25%
OCF growth 1Y11.04%
OCF growth 3Y-5.43%
OCF growth 5Y-4.04%