AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
7.83 USD
+0.34 (+4.54%)
7.83 USD
0 (0%)
Taking everything into account, AXL scores 3 out of 10 in our fundamental rating. AXL was compared to 42 industry peers in the Automobile Components industry. AXL has a medium profitability rating, but doesn't score so well on its financial health evaluation. AXL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AXL was profitable.
AXL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AXL reported negative net income in multiple years.
AXL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AXL (0.75%) is comparable to the rest of the industry.
AXL's Return On Equity of 5.58% is fine compared to the rest of the industry. AXL outperforms 71.43% of its industry peers.
AXL has a Return On Invested Capital of 4.97%. This is comparable to the rest of the industry: AXL outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXL 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of AXL has grown nicely.
Looking at the Operating Margin, with a value of 4.39%, AXL is in line with its industry, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Operating Margin of AXL has declined.
AXL has a Gross Margin of 12.31%. This is in the lower half of the industry: AXL underperforms 73.81% of its industry peers.
AXL's Gross Margin has declined in the last couple of years.
| 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.
AXL has more shares outstanding than it did 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
Based on the Altman-Z score of 1.54, we must say that AXL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.54, AXL is doing worse than 64.29% of the companies in the same industry.
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.
The Debt to FCF ratio of AXL (16.22) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.61 is on the high side and indicates that AXL has dependencies on debt financing.
AXL has a worse Debt to Equity ratio (3.61) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.63
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.77 indicates that AXL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, AXL is in line with its industry, outperforming 45.24% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that AXL should not have too much problems paying its short term obligations.
The Quick ratio of AXL (1.43) is better than 71.43% 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.
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 -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-15.93%
EPS Next 2Y14.08%
EPS Next 3Y20.6%
EPS Next 5Y30.48%
Revenue Next Year-4.56%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.43%
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.
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
Based on the Price/Earnings ratio of 19.57, the valuation of AXL can be described as rather expensive.
AXL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. AXL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.80, which indicates a very decent valuation of AXL.
69.05% of the companies in the same industry are more expensive than AXL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, AXL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXL is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.76 | ||
| EV/EBITDA | 3.91 |
4.3 Compensation for Growth
AXL's earnings are expected to grow with 20.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.08%
EPS Next 3Y20.6%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.83
+0.34 (+4.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners140.17%
Inst Owner Change0%
Ins Owners3.57%
Ins Owner Change0%
Market Cap929.42M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts70
Price Target7.53 (-3.83%)
Short Float %25.17%
Short Ratio9.49
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)4.21%
PT rev (3m)15.29%
EPS NQ rev (1m)20.11%
EPS NQ rev (3m)-705.85%
EPS NY rev (1m)2.96%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 11.8 | ||
| P/S | 0.16 | ||
| P/FCF | 5.76 | ||
| P/OCF | 2.1 | ||
| P/B | 1.29 | ||
| P/tB | 6.26 | ||
| EV/EBITDA | 3.91 |
EPS(TTM)0.4
EY5.11%
EPS(NY)0.66
Fwd EY8.48%
FCF(TTM)1.36
FCFY17.35%
OCF(TTM)3.73
OCFY47.59%
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 | 1.54 |
F-Score8
WACC7.87%
ROIC/WACC0.63
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-15.93%
EPS Next 2Y14.08%
EPS Next 3Y20.6%
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-4.56%
Revenue Next 2Y-1.97%
Revenue Next 3Y-0.43%
Revenue Next 5Y1.46%
EBIT growth 1Y-3.21%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year186.93%
EBIT Next 3Y43.59%
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 for AXL stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN AXLE & MFG HOLDINGS (AXL). This can be considered as Fairly Valued.
What is the profitability of AXL stock?
AMERICAN AXLE & MFG HOLDINGS (AXL) has a profitability rating of 4 / 10.
What is the valuation of AMERICAN AXLE & MFG HOLDINGS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN AXLE & MFG HOLDINGS (AXL) is 19.58 and the Price/Book (PB) ratio is 1.29.
How financially healthy is AMERICAN AXLE & MFG HOLDINGS?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.