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Fundamental analysis: American Axle & Manufacturing Holdings, Inc. (AXL)

Awarener score: 5.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Average) and growth (Bottom), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.5

  • Business has been shrinking at a very fast pace. It's been substantially worse when measured against peer companies.
  • American Axle & Manufacturing Holdings, Inc. business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 4.0

  • AXL profit margins -on goods and services sold- are usually very poor. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be meagre. It's below average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still mediocre against similar companies.
  • Profits -before income taxes- are usually meagre considering total sales, and remain weak when measured against rivals.
  • Total net profit tends to be meagre when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 1.1

  • American Axle & Manufacturing Holdings, Inc. profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

  • AXL had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 3.2

  • American Axle & Manufacturing Holdings, Inc. usually gets low returns on the resources it controls. It proves weak when measured against peer firms.
  • The company normally gets low proceeds -on the resources directly invested in the business-. They remain in a very weak position compared to similar companies.
  • There's usually bottom profitability -in relation to owned resources-. It ranks last-in-rank when measured against competitors.
  • In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's weak when measured against comparable enterprises.

Usage of Funds score: 5.0

  • AXL usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands weak when measured against rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is substantially worse when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a non-significant portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could greatly boost stockholder rewards if it wished so. It still looks top tier when measured against competitors.

Balance Sheet score: 5.2

  • American Axle & Manufacturing Holdings, Inc. intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be close to average when compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains bottom tier against rival firms.
  • Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks substantially worse when measured against rivals.
  • For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks almost average when measured against peers.
  • Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as excellent in relation to competitors.
  • On average, it takes higher than three months from the purchase to charging customers. It happens to be better than most peers.
  • On average pays suppliers longer than two months after the purchase. It ranks weak when measured against industry peers.
  • The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's excellent in relation to similar companies.
  • Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 4.6

  • American Axle & Manufacturing Holdings, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands well ranked against similar companies.
  • The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still more than average in relation to industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
  • The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks worse than most similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks in good shape compared to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
  • In the past twelve months, the operating business lost significant money. It happens to be substantially worse when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still lacking compared to peer companies.

Total score: 3.5


AXL logos

Company at a glance: American Axle & Manufacturing Holdings, Inc. (AXL)

Sector, industry: Consumer Cyclical, Auto Parts

Market Cap: 0.91 billions

Revenues TTM: 5.32 billions

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles in the United States, Mexico, South America, China, other Asian countries, and Europe. It operates through Driveline and Metal Forming segments. The Driveline segment offers front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment provides axle and transmission shafts, ring and pinion gears, differential gears and assemblies, and connecting rods and variable valve timing products for original equipment manufacturers and tier 1 automotive suppliers. American Axle & Manufacturing Holdings, Inc. has technology development agreement with Suzhou Inovance Automotive Ltd. and REE Automotive Ltd. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.

Awarener score: 5.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Average) and growth (Bottom), and the company's inclination to return cash to the stockholders (Good).