AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - NYSE:AXL - US0240611030 - Common Stock
6.325 USD
+0.02 (+0.24%)
Taking everything into account, AXL scores 3 out of 10 in our fundamental rating. AXL was compared to 80 industry peers in the Automobile Components industry. Both the profitability and financial health of AXL have multiple concerns. AXL has a correct valuation and a medium growth rate.
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
With a Return On Assets value of 0.78%, AXL is not doing good in the industry: 73.75% of the companies in the same industry are doing better.
AXL's Return On Equity of 6.08% is on the low side compared to the rest of the industry. AXL is outperformed by 66.25% of its industry peers.
AXL has a Return On Invested Capital of 4.73%. This is in the lower half of the industry: AXL underperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXL is below the industry average of 8.51%.
The last Return On Invested Capital (4.73%) for AXL is above the 3 year average (4.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 6.08% | ||
| ROIC | 4.73% |
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
With a Profit Margin value of 0.70%, AXL is not doing good in the industry: 73.75% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of AXL has grown nicely.
AXL has a Operating Margin of 4.15%. This is in the lower half of the industry: AXL underperforms 73.75% 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 12.00%, AXL is doing worse than 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of AXL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.15% | ||
| PM (TTM) | 0.7% | ||
| GM | 12% |
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.
Compared to 1 year ago, AXL has more shares outstanding
AXL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AXL has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that AXL is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.52, AXL is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
The Debt to FCF ratio of AXL is 16.82, which is on the high side as it means it would take AXL, 16.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.82, AXL is doing worse than 75.00% of the companies in the same industry.
A Debt/Equity ratio of 3.86 is on the high side and indicates that AXL has dependencies on debt financing.
AXL's Debt to Equity ratio of 3.86 is on the low side compared to the rest of the industry. AXL is outperformed by 92.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.64
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.77 indicates that AXL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.77, AXL is not doing good in the industry: 78.75% of the companies in the same industry are doing better.
A Quick Ratio of 1.40 indicates that AXL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, AXL belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 158.82% over the past 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.
The Revenue has decreased by -6.73% in the past year.
The Revenue has been decreasing by -1.28% on average over the past years.
EPS 1Y (TTM)158.82%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%10.53%
Revenue 1Y (TTM)-6.73%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-5.89%
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 0.85% yearly.
EPS Next Y-16.2%
EPS Next 2Y12.77%
EPS Next 3Y27.92%
EPS Next 5Y25.47%
Revenue Next Year-4.77%
Revenue Next 2Y-2.66%
Revenue Next 3Y-0.47%
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.
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
AXL is valuated correctly with a Price/Earnings ratio of 14.38.
Compared to the rest of the industry, the Price/Earnings ratio of AXL indicates a somewhat cheap valuation: AXL is cheaper than 65.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. AXL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 9.75, the valuation of AXL can be described as reasonable.
Based on the Price/Forward Earnings ratio, AXL is valued a bit cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. AXL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
AXL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AXL is cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaper than 98.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.81 | ||
| EV/EBITDA | 3.98 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AXL's earnings are expected to grow with 27.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.77%
EPS Next 3Y27.92%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AXL (9/19/2025, 10:31:09 AM)
6.325
+0.02 (+0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners115.07%
Inst Owner Change14.33%
Ins Owners3.58%
Ins Owner Change4.2%
Market Cap750.52M
Analysts67.69
Price Target6.53 (3.24%)
Short Float %23.48%
Short Ratio7.1
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)129.2%
Min EPS beat(2)31.39%
Max EPS beat(2)227.01%
EPS beat(4)4
Avg EPS beat(4)199.39%
Min EPS beat(4)31.39%
Max EPS beat(4)504.12%
EPS beat(8)7
Avg EPS beat(8)116.55%
EPS beat(12)10
Avg EPS beat(12)17.37%
EPS beat(16)13
Avg EPS beat(16)200.14%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-0.93%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)5
Avg Revenue beat(12)0.16%
Revenue beat(16)8
Avg Revenue beat(16)0.59%
PT rev (1m)12.39%
PT rev (3m)23.2%
EPS NQ rev (1m)18.2%
EPS NQ rev (3m)70.86%
EPS NY rev (1m)22.96%
EPS NY rev (3m)-5.01%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 9.75 | ||
| P/S | 0.13 | ||
| P/FCF | 4.81 | ||
| P/OCF | 1.7 | ||
| P/B | 1.12 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 3.98 |
EPS(TTM)0.44
EY6.96%
EPS(NY)0.65
Fwd EY10.25%
FCF(TTM)1.31
FCFY20.77%
OCF(TTM)3.73
OCFY58.97%
SpS49.16
BVpS5.67
TBVpS0.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 6.08% | ||
| ROCE | 5.99% | ||
| ROIC | 4.73% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 6.67% | ||
| OM | 4.15% | ||
| PM (TTM) | 0.7% | ||
| GM | 12% | ||
| FCFM | 2.67% |
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 62.6% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | 63.2% | ||
| Profit Quality | 381.17% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.52 |
F-Score8
WACC7.44%
ROIC/WACC0.64
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)158.82%
EPS 3Y-17.85%
EPS 5Y-20.64%
EPS Q2Q%10.53%
EPS Next Y-16.2%
EPS Next 2Y12.77%
EPS Next 3Y27.92%
EPS Next 5Y25.47%
Revenue 1Y (TTM)-6.73%
Revenue growth 3Y5.9%
Revenue growth 5Y-1.28%
Sales Q2Q%-5.89%
Revenue Next Year-4.77%
Revenue Next 2Y-2.66%
Revenue Next 3Y-0.47%
Revenue Next 5Y0.85%
EBIT growth 1Y2.58%
EBIT growth 3Y-2.49%
EBIT growth 5Y-9.31%
EBIT Next Year174.36%
EBIT Next 3Y41.41%
EBIT Next 5Y25.13%
FCF growth 1Y-23.47%
FCF growth 3Y-16.99%
FCF growth 5Y10.25%
OCF growth 1Y11.04%
OCF growth 3Y-5.43%
OCF growth 5Y-4.04%