AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
NYSE:AXL - New York Stock Exchange, Inc. - US0240611030 - Common Stock - Currency: USD
AXL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. Both the profitability and financial health of AXL have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on AXL.
1. Profitability
1.1 Basic Checks
AXL had positive earnings in the past year.
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.
Each year in the past 5 years AXL had a positive operating cash flow.
1.2 Ratios
AXL has a Return On Assets of 0.40%. This is in the lower half of the industry: AXL underperforms 71.60% of its industry peers.
AXL has a worse Return On Equity (3.47%) than 70.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.08%, AXL is doing worse than 75.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AXL is below the industry average of 9.04%.
The last Return On Invested Capital (5.08%) for AXL is above the 3 year average (4.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 3.47% | ||
| ROIC | 5.08% |
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 of 0.35%. This is in the lower half of the industry: AXL underperforms 71.60% of its industry peers.
AXL's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 4.29%, AXL is not doing good in the industry: 72.84% of the companies in the same industry are doing better.
AXL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.09%, AXL is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 0.35% | ||
| GM | 12.09% |
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.
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
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.
AXL has a Altman-Z score of 1.51. This is amonst the worse of the industry: AXL underperforms 82.72% of its industry peers.
The Debt to FCF ratio of AXL is 11.90, which is on the high side as it means it would take AXL, 11.90 years of fcf income to pay off all of its debts.
AXL has a worse Debt to FCF ratio (11.90) than 72.84% of its industry peers.
A Debt/Equity ratio of 4.38 is on the high side and indicates that AXL has dependencies on debt financing.
AXL has a Debt to Equity ratio of 4.38. This is amonst the worse of the industry: AXL underperforms 91.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.74
WACC6.84%
2.3 Liquidity
A Current Ratio of 1.72 indicates that AXL should not have too much problems paying its short term obligations.
AXL's Current ratio of 1.72 is on the low side compared to the rest of the industry. AXL is outperformed by 79.01% of its industry peers.
AXL has a Quick Ratio of 1.35. 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 better Quick ratio (1.35) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
AXL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 320.00%, 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.
AXL shows a decrease in Revenue. In the last year, the revenue decreased by -4.25%.
The Revenue has been decreasing by -1.28% on average over the past years.
EPS 1Y (TTM)320%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%-50%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-12.17%
3.2 Future
AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.47% yearly.
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-11.77%
EPS Next 2Y9.54%
EPS Next 3Y19.75%
EPS Next 5Y25.47%
Revenue Next Year-5.77%
Revenue Next 2Y-3.06%
Revenue Next 3Y-0.89%
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
Based on the Price/Earnings ratio of 9.86, the valuation of AXL can be described as reasonable.
AXL's Price/Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 66.67% of the companies in the same industry.
AXL is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.77, which indicates a rather cheap valuation of AXL.
71.60% 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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 6.77 |
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 80.25% 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 98.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.23 | ||
| EV/EBITDA | 3.56 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 19.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.54%
EPS Next 3Y19.75%
5. Dividend
5.1 Amount
No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.14
-0.3 (-6.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners110.77%
Inst Owner Change8.51%
Ins Owners3.58%
Ins Owner Change19.09%
Market Cap489.93M
Analysts52
Price Target5.3 (28.02%)
Short Float %15.26%
Short Ratio5.96
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)131.01%
Min EPS beat(2)35.03%
Max EPS beat(2)227.01%
EPS beat(4)4
Avg EPS beat(4)209.34%
Min EPS beat(4)35.03%
Max EPS beat(4)504.12%
EPS beat(8)7
Avg EPS beat(8)117.4%
EPS beat(12)10
Avg EPS beat(12)24.24%
EPS beat(16)13
Avg EPS beat(16)248.79%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-1.37%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)2.08%
Revenue beat(8)4
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.81%
Revenue beat(16)9
Avg Revenue beat(16)1.44%
PT rev (1m)-1.35%
PT rev (3m)-21.01%
EPS NQ rev (1m)-22.53%
EPS NQ rev (3m)-29.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 6.77 | ||
| P/S | 0.08 | ||
| P/FCF | 2.23 | ||
| P/OCF | 0.99 | ||
| P/B | 0.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.56 |
EPS(TTM)0.42
EY10.14%
EPS(NY)0.61
Fwd EY14.78%
FCF(TTM)1.86
FCFY44.93%
OCF(TTM)4.17
OCFY100.73%
SpS50.1
BVpS5.04
TBVpS-0.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 3.47% | ||
| ROCE | 6.43% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.9% | ||
| ROICexgc | 7.18% | ||
| OM | 4.29% | ||
| PM (TTM) | 0.35% | ||
| GM | 12.09% | ||
| FCFM | 3.71% |
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-Score9
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 11.9 | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 58.91% | ||
| Cap/Sales | 4.61% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 68.69% | ||
| Profit Quality | 1063.29% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.51 |
F-Score9
WACC6.84%
ROIC/WACC0.74
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)320%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%-50%
EPS Next Y-11.77%
EPS Next 2Y9.54%
EPS Next 3Y19.75%
EPS Next 5Y25.47%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-12.17%
Revenue Next Year-5.77%
Revenue Next 2Y-3.06%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.85%
EBIT growth 1Y20.87%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year173.54%
EBIT Next 3Y40.74%
EBIT Next 5Y25.13%
FCF growth 1Y0.46%
FCF growth 3Y-16.99%
FCF growth 5Y10.25%
OCF growth 1Y19.64%
OCF growth 3Y-5.43%
OCF growth 5Y-4.04%