AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
NYSE:AXL - New York Stock Exchange, Inc. - US0240611030 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to AXL. AXL was compared to 81 industry peers in the Automobile Components industry. AXL has a bad profitability rating. Also its financial health evaluation is rather negative. AXL is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
AXL had positive earnings in the past year.
AXL had a positive operating cash flow in the past year.
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's Return On Assets of 0.40% is on the low side compared to the rest of the industry. AXL is outperformed by 72.84% of its industry peers.
AXL has a worse Return On Equity (3.47%) than 70.37% of its industry peers.
The Return On Invested Capital of AXL (5.08%) is worse than 75.31% of its industry peers.
AXL had an Average Return On Invested Capital over the past 3 years of 4.62%. This is below the industry average of 9.05%.
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 worse Profit Margin (0.35%) than 71.60% of its industry peers.
AXL's Profit Margin has improved in the last couple of years.
AXL has a worse Operating Margin (4.29%) than 72.84% of its industry peers.
AXL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.09%, AXL is doing worse than 85.19% of the companies in the same industry.
AXL's Gross Margin has declined in the last couple of years.
| 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.
Compared to 5 years ago, AXL has more shares outstanding
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.
The Altman-Z score of AXL (1.52) is worse than 81.48% of its industry peers.
AXL has a debt to FCF ratio of 11.90. This is a negative value and a sign of low solvency as AXL would need 11.90 years to pay back of all of its debts.
The Debt to FCF ratio of AXL (11.90) is worse than 72.84% of its industry peers.
AXL has a Debt/Equity ratio of 4.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.38, AXL is not doing good in the industry: 92.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.38 | ||
| Debt/FCF | 11.9 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.74
WACC6.9%
2.3 Liquidity
AXL has a Current Ratio of 1.72. 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 1.72 is on the low side compared to the rest of the industry. AXL is outperformed by 79.01% of its industry peers.
A Quick Ratio of 1.35 indicates that AXL should not have too much problems paying its short term obligations.
AXL has a better Quick ratio (1.35) than 75.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 320.00% over the past 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.
Looking at the last year, AXL shows a decrease in Revenue. The Revenue has decreased by -4.25% in the last year.
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)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
The Earnings Per Share is expected to grow by 25.47% on average over the next years. This is a very strong growth
AXL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.80% yearly.
EPS Next Y-11.77%
EPS Next 2Y9.54%
EPS Next 3Y19.75%
EPS Next 5Y25.47%
Revenue Next Year-4.7%
Revenue Next 2Y-2.45%
Revenue Next 3Y-0.75%
Revenue Next 5Y0.8%
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
A Price/Earnings ratio of 10.19 indicates a reasonable valuation of AXL.
AXL's Price/Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 64.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, AXL is valued rather cheaply.
AXL is valuated cheaply with a Price/Forward Earnings ratio of 6.99.
70.37% 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 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 6.99 |
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.
98.77% 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 | 2.3 | ||
| EV/EBITDA | 3.59 |
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 |
4.28
-0.1 (-2.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change8.34%
Ins Owners3.2%
Ins Owner Change19.09%
Market Cap506.50M
Analysts52
Price Target5.38 (25.7%)
Short Float %13.73%
Short Ratio5.32
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)-14.19%
PT rev (3m)-22.38%
EPS NQ rev (1m)-19.49%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)-14.31%
EPS NY rev (3m)-15.72%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)3.9%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 6.99 | ||
| P/S | 0.09 | ||
| P/FCF | 2.3 | ||
| P/OCF | 1.03 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.59 |
EPS(TTM)0.42
EY9.81%
EPS(NY)0.61
Fwd EY14.3%
FCF(TTM)1.86
FCFY43.46%
OCF(TTM)4.17
OCFY97.43%
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 | 1.52 |
F-Score9
WACC6.9%
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-4.7%
Revenue Next 2Y-2.45%
Revenue Next 3Y-0.75%
Revenue Next 5Y0.8%
EBIT growth 1Y20.87%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year173.54%
EBIT Next 3Y40.74%
EBIT Next 5Y24.09%
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%