AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
NYSE:AXL - New York Stock Exchange, Inc. - US0240611030 - Common Stock - Currency: USD
Taking everything into account, AXL scores 4 out of 10 in our fundamental rating. AXL was compared to 81 industry peers in the Automobile Components industry. AXL may be in some trouble as it scores bad on both profitability and health. AXL is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year AXL was profitable.
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
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.
With a Return On Equity value of 6.01%, AXL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
AXL has a worse Return On Invested Capital (5.52%) than 72.84% of its industry peers.
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
The Profit Margin of AXL (0.55%) is worse than 70.37% of its industry peers.
AXL's Profit Margin has improved in the last couple of years.
The Operating Margin of AXL (4.43%) is worse than 70.37% of its industry peers.
AXL's Operating Margin has declined in the last couple of years.
AXL's Gross Margin of 12.10% is on the low side compared to the rest of the industry. AXL is outperformed by 83.95% of its industry peers.
AXL's Gross Margin has declined in the last couple of years.
| 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.
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
Based on the Altman-Z score of 1.55, we must say that AXL is in the distress zone and has some risk of bankruptcy.
AXL has a Altman-Z score of 1.55. This is amonst the worse of the industry: AXL underperforms 83.95% of its industry peers.
The Debt to FCF ratio of AXL is 12.85, which is on the high side as it means it would take AXL, 12.85 years of fcf income to pay off all of its debts.
AXL has a worse Debt to FCF ratio (12.85) than 72.84% of its industry peers.
A Debt/Equity ratio of 4.58 is on the high side and indicates that AXL has dependencies on debt financing.
AXL has a Debt to Equity ratio of 4.58. This is amonst the worse of the industry: AXL underperforms 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.58 | ||
| Debt/FCF | 12.85 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.81
WACC6.78%
2.3 Liquidity
AXL has a Current Ratio of 1.63. 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 1.63. This is in the lower half of the industry: AXL underperforms 79.01% of its industry peers.
AXL has a Quick Ratio of 1.25. 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 Quick ratio of 1.25. This is in the better half of the industry: AXL outperforms 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.
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.
AXL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.75%.
Measured over the past years, AXL shows a decrease in Revenue. The Revenue has been decreasing by -1.28% on average per year.
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
The Earnings Per Share is expected to grow by 25.47% on average over the next years. This is a very strong growth
Based on estimates for the next years, AXL will show a small growth in Revenue. The Revenue will grow by 0.80% on average per year.
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 7.82, the valuation of AXL can be described as very cheap.
Based on the Price/Earnings ratio, AXL is valued a bit cheaper than the industry average as 76.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.22, AXL is valued rather cheaply.
AXL is valuated cheaply with a Price/Forward Earnings ratio of 7.60.
65.43% of the companies in the same industry are more expensive than AXL, based on the Price/Forward Earnings ratio.
AXL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
77.78% of the companies in the same industry are more expensive than AXL, based on the Enterprise Value to EBITDA ratio.
100.00% of the companies in the same industry are more expensive than AXL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.31 | ||
| 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)2.65
PEG (5Y)N/A
EPS Next 2Y14.79%
EPS Next 3Y19.25%
5. Dividend
5.1 Amount
No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.99
+0.19 (+5%)
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 Cap472.14M
Analysts52
Price Target5.26 (31.83%)
Short Float %12.44%
Short Ratio4.95
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 | 7.82 | ||
| Fwd PE | 7.6 | ||
| P/S | 0.08 | ||
| P/FCF | 2.31 | ||
| P/OCF | 1.04 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.4 |
EPS(TTM)0.51
EY12.78%
EPS(NY)0.53
Fwd EY13.16%
FCF(TTM)1.73
FCFY43.27%
OCF(TTM)3.85
OCFY96.46%
SpS51.76
BVpS4.76
TBVpS-0.56
PEG (NY)2.65
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
WACC6.78%
ROIC/WACC0.81
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%