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American Axle & Manufacturing Holdings

Market Cap

US$1.1b

Last Updated

2021/04/18 22:46 UTC

Data Sources

Company Financials +

Executive Summary

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming products in the United States, Mexico, South America, China, other Asian countries, and Europe. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has American Axle & Manufacturing Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AXL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: AXL's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-0.1%

AXL

-0.9%

US Auto Components

1.3%

US Market


1 Year Return

155.1%

AXL

115.7%

US Auto Components

53.8%

US Market

Return vs Industry: AXL exceeded the US Auto Components industry which returned 115.7% over the past year.

Return vs Market: AXL exceeded the US Market which returned 53.9% over the past year.


Shareholder returns

AXLIndustryMarket
7 Day-0.1%-0.9%1.3%
30 Day-16.5%-6.3%5.1%
90 Day9.2%1.7%8.9%
1 Year155.1%155.1%116.8%115.7%56.6%53.8%
3 Year-38.8%-38.8%26.5%17.6%64.4%53.6%
5 Year-39.8%-39.8%75.4%51.5%120.4%95.7%

Long-Term Price Volatility Vs. Market

How volatile is American Axle & Manufacturing Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Axle & Manufacturing Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXL ($9.54) is trading below our estimate of fair value ($28.53)

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


Price To Earnings Ratio

PE vs Industry: AXL is unprofitable, so we can't compare its PE Ratio to the US Auto Components industry average.

PE vs Market: AXL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AXL is overvalued based on its PB Ratio (2.9x) compared to the US Auto Components industry average (2.6x).


Future Growth

How is American Axle & Manufacturing Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

93.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: AXL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AXL's is expected to become profitable in the next 3 years.

Revenue vs Market: AXL's revenue (5.1% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: AXL's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AXL's Return on Equity is forecast to be high in 3 years time (24%)


Past Performance

How has American Axle & Manufacturing Holdings performed over the past 5 years?

-65.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXL is currently unprofitable.

Growing Profit Margin: AXL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AXL is unprofitable, and losses have increased over the past 5 years at a rate of 65.7% per year.

Accelerating Growth: Unable to compare AXL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AXL is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (16.5%).


Return on Equity

High ROE: AXL has a negative Return on Equity (-150.35%), as it is currently unprofitable.


Financial Health

How is American Axle & Manufacturing Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AXL's short term assets ($1.9B) exceed its short term liabilities ($979.3M).

Long Term Liabilities: AXL's short term assets ($1.9B) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: AXL's debt to equity ratio (939.1%) is considered high.

Reducing Debt: AXL's debt to equity ratio has increased from 453.1% to 939.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AXL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AXL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 2% per year.


Dividend

What is American Axle & Manufacturing Holdings's current dividend yield, its reliability and sustainability?

0.087%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: AXL is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

David Dauch (55 yo)

8.58yrs

Tenure

US$8,844,428

Compensation

Mr. David Charles Dauch has been Chairman and Chief Executive Officer at Metaldyne Performance Group Inc. since April 6, 2017. Mr. Dauch has been the Chairman of the Board and Chief Executive Officer of Am...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD8.84M) is above average for companies of similar size in the US market ($USD2.32M).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AXL's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: AXL's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AXL insiders have only sold shares 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

American Axle & Manufacturing Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Axle & Manufacturing Holdings, Inc.
  • Ticker: AXL
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$1.079b
  • Shares outstanding: 113.91m
  • Website: https://www.aam.com

Number of Employees


Location

  • American Axle & Manufacturing Holdings, Inc.
  • One Dauch Drive
  • Detroit
  • Michigan
  • 48211-1198
  • United States

Listings


Biography

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming products in the United States, Mexico, South America, China, o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/18 22:46
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.