NYSE:AXE

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.

Rewards

PE ratio (16.5x) is below the US market (18.9x)

Earnings are forecast to grow 8.03% per year

Earnings grew by 77.5% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record with excellent balance sheet.


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


Market Performance


7 Day Return

0.06%

AXE

-0.1%

US Electronic

0.6%

US Market


1 Year Return

67.0%

AXE

29.0%

US Electronic

24.6%

US Market

Return vs Industry: AXE exceeded the US Electronic industry which returned 30.2% over the past year.

Return vs Market: AXE exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

AXEIndustryMarket
7 Day0.06%-0.1%0.6%
30 Day13.2%1.9%3.0%
90 Day42.1%9.4%10.6%
1 Year67.0%67.0%30.3%29.0%27.3%24.6%
3 Year19.2%19.2%48.8%44.6%50.5%40.8%
5 Year29.9%29.9%88.8%79.2%78.9%59.1%

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

Valuation

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

16.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AXE ($98.67) is trading above our estimate of fair value ($78.84)

Significantly Below Fair Value: AXE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AXE is good value based on its PE Ratio (16.5x) compared to the Electronic industry average (21.2x).

PE vs Market: AXE is good value based on its PE Ratio (16.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AXE is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: AXE is good value based on its PB Ratio (1.9x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

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

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXE's forecast earnings growth (8% per year) is above the savings rate (1.7%).

Earnings vs Market: AXE's earnings (8% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: AXE's earnings are forecast to grow, but not significantly.

Revenue vs Market: AXE's revenue (3.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: AXE's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AXE'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?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXE has high quality earnings.

Growing Profit Margin: AXE's current net profit margins (2.3%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: AXE's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: AXE's earnings growth over the past year (77.5%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: AXE earnings growth over the past year (77.5%) exceeded the Electronic industry 53.6%.


Return on Equity

High ROE: AXE's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Anixter International's financial position?


Financial Position Analysis

Short Term Liabilities: AXE's short term assets ($3.1B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: AXE's short term assets ($3.1B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: AXE's debt to equity ratio (61.8%) is considered high.

Reducing Debt: AXE's debt to equity ratio has reduced from 104.2% to 61.8% over the past 5 years.

Debt Coverage: AXE's debt is well covered by operating cash flow (22.3%).

Interest Coverage: AXE's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: AXE'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

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate AXE'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 AXE's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AXE'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 Anixter International's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Bill Galvin (56yo)

1.6yrs

Tenure

US$3,268,279

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 ($USD3.27M) is below average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

4.9yrs

Average Tenure

56yo

Average Age

Experienced Management: AXE's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

67yo

Average Age

Experienced Board: AXE's board of directors are seasoned and experienced ( 14.8 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$130,29830 Jul 19
F. Handy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$65.15
SellUS$184,59029 Apr 19
F. Handy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$61.53
SellUS$466,78521 Feb 19
F. Handy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceUS$62.71

Ownership Breakdown

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


Management Team

  • Rodney Shoemaker (61yo)

    Senior VP & Treasurer

    • Tenure: 20.5yrs
    • Compensation: US$558.89k
  • Rod Smith (61yo)

    Executive Vice President of Human Resources

    • Tenure: 13.4yrs
    • Compensation: US$634.12k
  • Ted Dosch (60yo)

    Executive VP of Finance & CFO

    • Tenure: 8.5yrs
    • Compensation: US$2.50m
  • Justin Choi (53yo)

    Executive VP

    • Tenure: 7.6yrs
    • Compensation: US$1.30m
  • Bob Graham (51yo)

    Executive Vice President of Electrical & Electronic Solutions

    • Tenure: 4.5yrs
    • Compensation: US$1.60m
  • Bill Geary (48yo)

    Executive Vice President of Network & Security Solutions

    • Tenure: 2.5yrs
    • Compensation: US$1.12m
  • Bill Galvin (56yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$3.27m
  • Scott Ramsbottom (45yo)

    Executive VP & Chief Information Officer

    • Tenure: 4.9yrs
  • Orlando McGee (57yo)

    Executive Vice President of Operations

    • Tenure: 2yrs
  • Kevin Burns

    Senior VP of Investor Relations & Treasurer


    Board Members

    • Mel Klein (77yo)

      Independent Director

      • Tenure: 35yrs
      • Compensation: US$265.20k
    • Linda Bynoe (67yo)

      Independent Director

      • Tenure: 14yrs
      • Compensation: US$252.63k
    • F. Handy (74yo)

      Independent Director

      • Tenure: 34yrs
      • Compensation: US$225.19k
    • Jake Brace (62yo)

      Independent Director

      • Tenure: 11yrs
      • Compensation: US$245.11k
    • James Blyth (78yo)

      Independent Director

      • Tenure: 25yrs
      • Compensation: US$245.11k
    • Sam Zell (77yo)

      Chairman of the Board

      • Tenure: 35yrs
      • Compensation: US$390.13k
    • George Muñoz (67yo)

      Independent Director

      • Tenure: 15.7yrs
      • Compensation: US$215.18k
    • Scott Peppet (50yo)

      Independent Director

      • Tenure: 5.2yrs
      • Compensation: US$215.18k
    • Bob Eck (60yo)

      Director

      • Tenure: 11.5yrs
      • Compensation: US$4.00m
    • Bill Galvin (56yo)

      President

      • Tenure: 1.6yrs
      • Compensation: US$3.27m

    Company Information

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


    Key Information

    • Name: Anixter International Inc.
    • Ticker: AXE
    • Exchange: NYSE
    • Founded: 1957
    • Industry: Technology Distributors
    • Sector: Tech
    • Market Cap: US$3.354b
    • Shares outstanding: 33.83m
    • 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, industrial Ethernet switches, and voice and data cables 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. The company 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 Analysis2020/01/22 23:31
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/27
    Annual Earnings2018/12/28


    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.