AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
6.46 USD
+0.02 (+0.31%)
6.46 USD
0 (0%)
Taking everything into account, AXL scores 3 out of 10 in our fundamental rating. AXL was compared to 43 industry peers in the Automobile Components industry. While AXL is still in line with the averages on profitability rating, there are concerns on its financial 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
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.
In the past 5 years AXL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AXL (0.75%) is comparable to the rest of the industry.
With a decent Return On Equity value of 5.58%, AXL is doing good in the industry, outperforming 72.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.97%, AXL is in line with its industry, outperforming 51.16% of the companies in the same industry.
AXL had an Average Return On Invested Capital over the past 3 years of 4.62%. This is below the industry average of 9.10%.
The 3 year average ROIC (4.62%) for AXL is below the current ROIC(4.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 5.58% | ||
| ROIC | 4.97% |
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
AXL has a Profit Margin (0.69%) which is in line with its industry peers.
AXL's Profit Margin has improved in the last couple of years.
AXL's Operating Margin of 4.39% is in line compared to the rest of the industry. AXL outperforms 55.81% of its industry peers.
AXL's Operating Margin has declined in the last couple of years.
AXL has a worse Gross Margin (12.31%) than 72.09% of its industry peers.
In the last couple of years the Gross Margin of AXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | 0.69% | ||
| GM | 12.31% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXL is destroying value.
The number of shares outstanding for AXL has been increased compared to 1 year ago.
The number of shares outstanding for AXL has been increased compared to 5 years ago.
AXL has about the same debt/assets ratio as last year.
2.2 Solvency
AXL has an Altman-Z score of 1.52. 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 1.52, AXL is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
AXL has a debt to FCF ratio of 16.22. This is a negative value and a sign of low solvency as AXL would need 16.22 years to pay back of all of its debts.
AXL has a Debt to FCF ratio (16.22) which is in line with its industry peers.
A Debt/Equity ratio of 3.61 is on the high side and indicates that AXL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.61, AXL is doing worse than 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.66
WACC7.5%
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.
AXL's Current ratio of 1.77 is in line compared to the rest of the industry. AXL outperforms 44.19% of its industry peers.
A Quick Ratio of 1.43 indicates that AXL should not have too much problems paying its short term obligations.
AXL's Quick ratio of 1.43 is fine compared to the rest of the industry. AXL outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The earnings per share for AXL have decreased strongly by -16.67% in the last year.
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 decrease in Revenue. In the last year, the revenue decreased by -6.02%.
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)-16.67%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%-20%
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%0.03%
3.2 Future
AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.48% yearly.
AXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.46% yearly.
EPS Next Y-18.35%
EPS Next 2Y15.33%
EPS Next 3Y21.46%
EPS Next 5Y30.48%
Revenue Next Year-4.49%
Revenue Next 2Y-1.93%
Revenue Next 3Y-0.35%
Revenue Next 5Y1.46%
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
Based on the Price/Earnings ratio of 16.15, the valuation of AXL can be described as correct.
Based on the Price/Earnings ratio, AXL is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
AXL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
A Price/Forward Earnings ratio of 9.52 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 79.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AXL to the average of the S&P500 Index (24.04), we can say AXL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
93.02% of the companies in the same industry are more expensive than AXL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaper than 97.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.75 | ||
| EV/EBITDA | 3.74 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 21.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.33%
EPS Next 3Y21.46%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
6.46
+0.02 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners139.37%
Inst Owner Change13.09%
Ins Owners3.57%
Ins Owner Change0%
Market Cap766.80M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price TargetN/A
Short Float %25.05%
Short Ratio9.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)23.15%
Min EPS beat(2)14.91%
Max EPS beat(2)31.39%
EPS beat(4)4
Avg EPS beat(4)77.08%
Min EPS beat(4)14.91%
Max EPS beat(4)227.01%
EPS beat(8)8
Avg EPS beat(8)213.37%
EPS beat(12)10
Avg EPS beat(12)17.6%
EPS beat(16)13
Avg EPS beat(16)36.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.74%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)-0.24%
Revenue beat(16)7
Avg Revenue beat(16)0.36%
PT rev (1m)3.66%
PT rev (3m)10.64%
EPS NQ rev (1m)31.51%
EPS NQ rev (3m)-705.85%
EPS NY rev (1m)-11.5%
EPS NY rev (3m)-2.57%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.13 | ||
| P/FCF | 4.75 | ||
| P/OCF | 1.73 | ||
| P/B | 1.07 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 3.74 |
EPS(TTM)0.4
EY6.19%
EPS(NY)0.68
Fwd EY10.5%
FCF(TTM)1.36
FCFY21.04%
OCF(TTM)3.73
OCFY57.68%
SpS49.15
BVpS6.05
TBVpS1.25
PEG (NY)N/A
PEG (5Y)N/A
Graham Number7.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 5.58% | ||
| ROCE | 6.29% | ||
| ROIC | 4.97% | ||
| ROICexc | 6.02% | ||
| ROICexgc | 7.26% | ||
| OM | 4.39% | ||
| PM (TTM) | 0.69% | ||
| GM | 12.31% | ||
| FCFM | 2.77% |
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%
ROICexgc growth 3Y2.99%
ROICexgc 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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 61.43% | ||
| Cap/Sales | 4.82% | ||
| Interest Coverage | 1.56 | ||
| Cash Conversion | 61.98% | ||
| Profit Quality | 402.24% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.52 |
F-Score8
WACC7.5%
ROIC/WACC0.66
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)-16.67%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%-20%
EPS Next Y-18.35%
EPS Next 2Y15.33%
EPS Next 3Y21.46%
EPS Next 5Y30.48%
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%0.03%
Revenue Next Year-4.49%
Revenue Next 2Y-1.93%
Revenue Next 3Y-0.35%
Revenue Next 5Y1.46%
EBIT growth 1Y-3.21%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year187.01%
EBIT Next 3Y44.04%
EBIT Next 5Y26.35%
FCF growth 1Y-45.43%
FCF growth 3Y-16.99%
FCF growth 5Y10.25%
OCF growth 1Y-10.05%
OCF growth 3Y-5.43%
OCF growth 5Y-4.04%
AMERICAN AXLE & MFG HOLDINGS / AXL FAQ
Can you provide the ChartMill fundamental rating for AMERICAN AXLE & MFG HOLDINGS?
ChartMill assigns a fundamental rating of 3 / 10 to AXL.
What is the valuation status of AMERICAN AXLE & MFG HOLDINGS (AXL) stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN AXLE & MFG HOLDINGS (AXL). This can be considered as Fairly Valued.
How profitable is AMERICAN AXLE & MFG HOLDINGS (AXL) stock?
AMERICAN AXLE & MFG HOLDINGS (AXL) has a profitability rating of 4 / 10.
Can you provide the financial health for AXL stock?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.