NYSE:AXL

Stock Analysis Report

American Axle & Manufacturing Holdings

Executive Summary

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

Rewards

Trading at 3.6% below its fair value

Earnings are forecast to grow 64.02% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Moderate growth potential and slightly overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

AXL

-1.4%

US Auto Components

-1.2%

US Market


1 Year Return

-20.8%

AXL

5.6%

US Auto Components

15.5%

US Market

Return vs Industry: AXL underperformed the US Auto Components industry which returned 5.6% over the past year.

Return vs Market: AXL underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

AXLIndustryMarket
7 Day-4.9%-1.4%-1.2%
30 Day-10.9%-3.4%1.4%
90 Day23.6%7.5%4.7%
1 Year-20.8%-20.8%7.2%5.6%18.0%15.5%
3 Year-47.0%-47.0%-0.9%-10.9%44.8%35.4%
5 Year-56.1%-56.1%18.6%1.9%67.3%48.9%

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?

3.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXL ($9.49) is trading below our estimate of fair value ($9.85)

Significantly Below Fair Value: AXL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AXL is unprofitable, so we can't compare its PE Ratio to the 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 good value based on its PB Ratio (0.8x) compared to the US Auto Components industry average (1.3x).


Next Steps

Future Growth

How is American Axle & Manufacturing Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

64.0%

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 (1.7%).

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 is expected to decline over the next 3 years (-5.3% per year).

High Growth Revenue: AXL's revenue is forecast to decline over the next 3 years (-5.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AXL's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

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

-19.8%

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 -19.8% 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 (4.1%).


Return on Equity

High ROE: AXL has a negative Return on Equity (-27.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: AXL's short term assets ($2.2B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: AXL's short term assets ($2.2B) do not cover its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: AXL's debt to equity ratio (264.7%) is considered high.

Reducing Debt: AXL's debt to equity ratio has reduced from 899.2% to 264.7% over the past 5 years.

Debt Coverage: AXL's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: AXL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: AXL's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate AXL'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 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

What is the CEO of American Axle & Manufacturing Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

David Dauch (54yo)

7.3yrs

Tenure

US$9,469,299

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 ($USD9.47M) is above average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

Experienced Management: AXL's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AXL's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$215,25613 Mar 19
Tolga Oal
EntityIndividual
Shares14,876
Max PriceUS$14.47
SellUS$251,80325 Feb 19
Alberto Satine
EntityIndividual
Shares15,033
Max PriceUS$16.75

Ownership Breakdown

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


Management Team

  • David Dauch (54yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$9.47m
  • Mike Simonte (55yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$4.22m
  • Norman Willemse (62yo)

    President of Metal Forming

    • Tenure: 4.3yrs
    • Compensation: US$2.23m
  • Chris Son

    Executive Director of Marketing & Corporate Communications

    • Tenure: 0yrs
  • Don Wright

    Chief Information Officer & VP

    • Tenure: 6.9yrs
  • Phil Guys (56yo)

    CTO & VP of Global Product Engineering

    • Tenure: 3.8yrs
  • David Barnes (60yo)

    Chief Compliance Officer

    • Tenure: 7.9yrs
  • Chris May (49yo)

    VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$2.62m
  • Jason Parsons

    Director of Investor Relations

    • Tenure: 4.3yrs
  • James Zaliwski (48yo)

    Chief Accounting Officer & Executive Director of Corporate Finance

    • Tenure: 0.6yrs

Board Members

  • Beth Chappell (61yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$245.70k
  • David Dauch (54yo)

    Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$9.47m
  • Jim McCaslin (70yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$250.60k
  • Sam Valenti (73yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$266.40k
  • William Miller (63yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$255.70k
  • Sandy Pierce (60yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$9.17k
  • John Smith (68yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$245.70k
  • Herbert Parker (61yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$18.33k
  • Bill Kozyra (62yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$235.70k
  • Peter Lyons (63yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$235.80k

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$1.071b
  • Shares outstanding: 112.48m
  • Website: https://www.aam.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1999
AYADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1999
AYABST (Boerse-Stuttgart)YesCommon StockDEEURJan 1999

Biography

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, validates, and manufactures driveline, metal forming, powertrain, and casting products in the United States ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:31
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.