AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXL - US0240611030 - Common Stock
7.05 USD
+0.63 (+9.81%)
7.0899 USD
+0.04 (+0.57%)
We assign a fundamental rating of 3 out of 10 to AXL. AXL was compared to 42 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 it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: AXL reported negative net income in multiple 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 0.75%. This is comparable to the rest of the industry: AXL outperforms 50.00% of its industry peers.
AXL has a Return On Equity of 5.58%. This is in the better half of the industry: AXL outperforms 71.43% of its industry peers.
The Return On Invested Capital of AXL (4.97%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AXL is below the industry average of 9.10%.
The last Return On Invested Capital (4.97%) for AXL is above the 3 year average (4.62%), which is a sign of increasing profitability.
| 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's Profit Margin of 0.69% is in line compared to the rest of the industry. AXL outperforms 52.38% of its industry peers.
In the last couple of years the Profit Margin of AXL has grown nicely.
AXL has a Operating Margin (4.39%) which is in line with its industry peers.
AXL's Operating Margin has declined in the last couple of years.
AXL's Gross Margin of 12.31% is on the low side compared to the rest of the industry. AXL is outperformed by 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.
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 1.52. 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 64.29% of its industry peers.
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.
With a Debt to FCF ratio value of 16.22, AXL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
AXL has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
AXL has a Debt to Equity ratio of 3.61. This is amonst the worse of the industry: AXL underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 16.22 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.65
WACC7.66%
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 45.24% of its industry peers.
AXL has a Quick Ratio of 1.43. 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 Quick ratio of 1.43. This is in the better half of the industry: AXL outperforms 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.
The Revenue has decreased by -6.02% in the past year.
The Revenue has been decreasing by -1.28% on average over the past years.
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
Based on estimates for the next years, AXL will show a very strong growth in Earnings Per Share. The EPS will grow by 30.48% on average per year.
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.
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
With a Price/Earnings ratio of 17.63, AXL is valued on the expensive side.
Based on the Price/Earnings ratio, AXL is valued a bit cheaper than 61.90% of the companies in the same industry.
AXL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
AXL is valuated reasonably with a Price/Forward Earnings ratio of 10.62.
AXL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXL is cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, AXL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
97.62% 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 cheaply inside the industry as 97.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | 3.73 |
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
No dividends for AXL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
7.05
+0.63 (+9.81%)
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 Cap836.84M
Revenue(TTM)5.83B
Net Income(TTM)40.10M
Analysts69.23
Price Target7.53 (6.81%)
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 | 17.63 | ||
| Fwd PE | 10.62 | ||
| P/S | 0.14 | ||
| P/FCF | 5.19 | ||
| P/OCF | 1.89 | ||
| P/B | 1.16 | ||
| P/tB | 5.64 | ||
| EV/EBITDA | 3.73 |
EPS(TTM)0.4
EY5.67%
EPS(NY)0.66
Fwd EY9.41%
FCF(TTM)1.36
FCFY19.28%
OCF(TTM)3.73
OCFY52.85%
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
WACC7.66%
ROIC/WACC0.65
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 17.63 and the Price/Book (PB) ratio is 1.16.
How financially healthy is AMERICAN AXLE & MFG HOLDINGS?
The financial health rating of AMERICAN AXLE & MFG HOLDINGS (AXL) is 2 / 10.