AMERICAN AXLE & MFG HOLDINGS (AXL) Stock Fundamental Analysis
USA - NYSE:AXL - US0240611030 - Common Stock
5.32 USD
-0.37 (-6.5%)
5.3 USD
-0.02 (-0.38%)
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. AXL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AXL was profitable.
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: 74.07% of the companies in the same industry are doing better.
AXL has a Return On Equity of 6.08%. This is in the lower half of the industry: AXL underperforms 65.43% of its industry peers.
AXL has a worse Return On Invested Capital (4.73%) than 74.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
AXL's Profit Margin of 0.70% is on the low side compared to the rest of the industry. AXL is outperformed by 72.84% of its industry peers.
AXL's Profit Margin has improved in the last couple of years.
AXL has a worse Operating Margin (4.15%) than 72.84% of its industry peers.
AXL's Operating Margin has declined in the last couple of years.
AXL has a Gross Margin of 12.00%. This is amonst the worse of the industry: AXL underperforms 86.42% of its industry peers.
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
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.
AXL has about the same debt/assets ratio as last year.
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.
Looking at the Altman-Z score, with a value of 1.51, AXL is doing worse than 82.72% of the companies in the same industry.
AXL has a debt to FCF ratio of 16.82. This is a negative value and a sign of low solvency as AXL would need 16.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.82, AXL is doing worse than 74.07% 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 91.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 16.82 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.66
WACC7.17%
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.
Looking at the Current ratio, with a value of 1.77, AXL is doing worse than 77.78% of the companies in the same industry.
AXL has a Quick Ratio of 1.40. This is a normal value and indicates that AXL is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.40, AXL belongs to the best of the industry, outperforming 81.48% 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.
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.
The Revenue has decreased by -6.73% in the past 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)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
AXL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.47% yearly.
The Revenue is expected to grow by 0.85% on average over the next years.
EPS Next Y-16%
EPS Next 2Y11.74%
EPS Next 3Y28.88%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 12.09, which indicates a correct valuation of AXL.
65.43% of the companies in the same industry are more expensive than AXL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.02, AXL is valued rather cheaply.
The Price/Forward Earnings ratio is 8.36, which indicates a very decent valuation of AXL.
66.67% 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 22.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
AXL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AXL is cheaper than 81.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AXL is valued cheaply inside the industry as 98.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.05 | ||
| EV/EBITDA | 3.87 |
4.3 Compensation for Growth
AXL's earnings are expected to grow with 28.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.74%
EPS Next 3Y28.88%
5. Dividend
5.1 Amount
AXL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.32
-0.37 (-6.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners123.58%
Inst Owner Change0%
Ins Owners3.57%
Ins Owner Change4.2%
Market Cap631.27M
Analysts69.23
Price Target6.53 (22.74%)
Short Float %24.24%
Short Ratio7.16
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)6.22%
PT rev (3m)23.2%
EPS NQ rev (1m)2.79%
EPS NQ rev (3m)79.79%
EPS NY rev (1m)0.23%
EPS NY rev (3m)23.25%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.11 | ||
| P/FCF | 4.05 | ||
| P/OCF | 1.43 | ||
| P/B | 0.94 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 3.87 |
EPS(TTM)0.44
EY8.27%
EPS(NY)0.64
Fwd EY11.97%
FCF(TTM)1.31
FCFY24.7%
OCF(TTM)3.73
OCFY70.11%
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 | 1.51 |
F-Score8
WACC7.17%
ROIC/WACC0.66
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%
EPS Next 2Y11.74%
EPS Next 3Y28.88%
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 Year179.35%
EBIT Next 3Y52.39%
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%