DB:AX1

Stock Analysis Report

Anixter International

Executive Summary

Anixter International Inc., through its subsidiary, Anixter Inc., distributes enterprise cabling and security solutions, electrical and electronic wire and cable solutions, and utility power solutions worldwide.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Anixter International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AX1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.8%

AX1

4.3%

DE Electronic

7.2%

DE Market


1 Year Return

63.1%

AX1

-26.3%

DE Electronic

-17.5%

DE Market

Return vs Industry: AX1 exceeded the German Electronic industry which returned -23.9% over the past year.

Return vs Market: AX1 exceeded the German Market which returned -14.1% over the past year.


Shareholder returns

AX1IndustryMarket
7 Day8.8%4.3%7.2%
30 Day-11.1%-25.8%-22.3%
90 Day-3.6%-23.6%-26.1%
1 Year63.1%63.1%-24.8%-26.3%-14.9%-17.5%
3 Year9.6%9.6%-2.3%-5.5%-18.7%-25.7%
5 Year14.2%14.2%55.1%43.8%-17.8%-29.1%

Price Volatility Vs. Market

How volatile is Anixter International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Anixter International undervalued compared to its fair value and its price relative to the market?

33.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AX1 (€80) is trading below our estimate of fair value (€119.89)

Significantly Below Fair Value: AX1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AX1 is good value based on its PE Ratio (11.4x) compared to the Electronic industry average (16.9x).

PE vs Market: AX1 is good value based on its PE Ratio (11.4x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AX1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AX1 is overvalued based on its PB Ratio (1.6x) compared to the DE Electronic industry average (1.2x).


Next Steps

Future Growth

How is Anixter International forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-2.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AX1's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if AX1's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AX1's revenue is expected to decline over the next 3 years (-2.6% per year).

High Growth Revenue: AX1's revenue is forecast to decline over the next 3 years (-2.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AX1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Anixter International performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AX1 has high quality earnings.

Growing Profit Margin: AX1's current net profit margins (3%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: AX1's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: AX1's earnings growth over the past year (67.7%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: AX1 earnings growth over the past year (67.7%) exceeded the Electronic industry -7.4%.


Return on Equity

High ROE: AX1's Return on Equity (14.1%) is considered low.


Next Steps

Financial Health

How is Anixter International's financial position?


Financial Position Analysis

Short Term Liabilities: AX1's short term assets ($3.0B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: AX1's short term assets ($3.0B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: AX1's debt to equity ratio (56.6%) is considered high.

Reducing Debt: AX1's debt to equity ratio has reduced from 106.1% to 56.6% over the past 5 years.

Debt Coverage: AX1's debt is well covered by operating cash flow (21.6%).

Interest Coverage: AX1's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: AX1 has a high level of physical assets or inventory.

Debt Coverage by Assets: AX1's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is Anixter International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AX1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AX1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AX1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AX1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AX1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AX1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Bill Galvin (56yo)

1.75s

Tenure

US$5,903,141

Compensation

Mr. William A. Galvin, also known as Bill, has been the President at Anixter International Inc. since July 1, 2017 and has been its Chief Executive Officer since July 2018. Mr. Galvin has been a Director o ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD5.90M) is above average for companies of similar size in the German market ($USD3.49M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Galvin
President1.75yrsUS$5.90m0.18% $4.9m
Theodore Dosch
Executive VP of Finance & CFO8.67yrsUS$2.86m0.18% $5.0m
Justin Choi
Executive VP7.75yrsUS$1.47m0.080% $2.2m
Robert Graham
Executive Vice President of Electrical & Electronic Solutions4.67yrsUS$1.75m0.063% $1.7m
William Geary
Executive Vice President of Network & Security Solutions2.67yrsUS$1.52m0.023% $618.0k
Orlando McGee
Executive Vice President of Operations2.17yrsno data0.0057% $155.7k
Scott Ramsbottom
Executive VP & Chief Information Officer5.08yrsno data0.027% $740.9k
Kevin Burns
Senior VP of Investor Relations & Treasurerno datano datano data
Rodney Smith
Executive Vice President of Human Resources13.58yrsUS$634.12k0.094% $2.6m
Steven Dean
Executive Vice President of UPSno datano data0.0055% $150.5k

4.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: AX1's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Galvin
President1.75yrsUS$5.90m0.18% $4.9m
Melvyn Klein
Independent Director35.17yrsUS$261.75k0.10% $2.8m
Linda Bynoe
Independent Director14.17yrsUS$253.90k0.0059% $160.9k
F. Handy
Independent Director34.17yrsUS$225.15k0.048% $1.3m
Frederic Brace
Independent Director11.17yrsUS$248.44k0.0035% $96.6k
James Blyth
Independent Director25.17yrsUS$245.11kno data
Samuel Zell
Chairman of the Board35.17yrsUS$390.11k0.046% $1.3m
George Muñoz
Independent Director15.83yrsUS$215.06k0.069% $1.9m
Valarie Sheppard
Independent Director4.5yrsUS$277.92k0.010% $282.5k
Robert Eck
Director11.67yrsUS$215.15k0.45% $12.2m

15.0yrs

Average Tenure

67yo

Average Age

Experienced Board: AX1's board of directors are seasoned and experienced ( 15 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Anixter International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Anixter International Inc.
  • Ticker: AX1
  • Exchange: DB
  • Founded: 1957
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$3.035b
  • Listing Market Cap: US$2.737b
  • Shares outstanding: 34.00m
  • Website: https://www.anixter.com

Number of Employees


Location

  • Anixter International Inc.
  • 2301 Patriot Boulevard
  • Glenview
  • Illinois
  • 60026
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXENYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1983
AX1DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1983

Biography

Anixter International Inc., through its subsidiary, Anixter Inc., distributes enterprise cabling and security solutions, electrical and electronic wire and cable solutions, and utility power solutions worldwide. The company operates through Network & Security Solutions (NSS), Electrical & Electronic Solutions (EES), and Utility Power Solutions (UPS) segments. The NSS segment offers copper and fiber optic cable and connectivity, access control, video surveillance, intrusion and fire/life safety, cabinet, power, cable management, wireless, professional audio/video, voice and networking switches, and other ancillary products for the technology, finance, transportation, education, government, healthcare, and retail industries, as well as telecommunications service providers. The EES Solutions segment provides electrical and electronic wires and cables, shipboard cables, support and supply products, low-voltage and instrumentation cables, industrial communication and control products, security cables, connectors, and industrial Ethernet switches to the commercial and industrial, and original equipment manufacturer markets. The UPS segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies, and smart-grid products, as well as arranges materials management and procurement outsourcing for the power generation and transmission, and electricity distribution industries. It serves contractors, installers, system integrators, value-added resellers, architects, engineers, and wholesale distributors in various industries, including manufacturing, resource extraction, telecommunications, Internet service providers, finance, education, healthcare, retail, transportation, utilities, and defense, as well as government customers. The company was formerly known as Itel Corporation. Anixter International Inc. was founded in 1957 and is headquartered in Glenview, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 22:30
End of Day Share Price2020/03/27 00:00
Earnings2020/01/03
Annual Earnings2020/01/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.