American Axle & Manufacturing Holdings, Inc. (AXL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Atmus Filtration Technologies, Inc.

Visteon Corp.

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Gentherm, Inc.

Dana, Inc.

American Axle & Manufacturing Holdings, Inc.

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Fox Factory Holding Corp.

Garrett Motion, Inc.

Luminar Technologies, Inc.

Why is American Axle & Manufacturing Holdings, Inc. ?

Flat results in Jun 25

With ROCE of 9.56%, it has a very expensive valuation with a 0.98 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.71%, its profits have risen by 576.4% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.71% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to American Axle & Manufacturing Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is American Axle & Manufacturing Holdings, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

American Axle & Manufacturing Holdings, Inc.

-7.71%

-0.29

54.28%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.27%

EBIT Growth (5y)

20.39%

EBIT to Interest (avg)

1.21

Debt to EBITDA (avg)

3.37

Net Debt to Equity (avg)

3.51

Sales to Capital Employed (avg)

1.79

Tax Ratio

54.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

7.58%

ROE (avg)

8.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.91

EV to EBIT

10.26

EV to EBITDA

3.66

EV to Capital Employed

0.98

EV to Sales

0.45

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

9.56%

ROE (Latest)

9.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 432.7 MM

INTEREST COVERAGE RATIO(Q)

Highest at 441.61

RAW MATERIAL COST(Y)

Fallen by 1.75% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 318.57 %

PRE-TAX PROFIT(Q)

Highest at USD 86.3 MM

NET PROFIT(Q)

Highest at USD 48.72 MM

EPS(Q)

Highest at USD 0.32

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for American Axle & Manufacturing Holdings, Inc.

Pre-Tax Profit

At USD 86.3 MM has Grown at 291.38%

over average net sales of the previous four periods of USD 22.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 48.72 MM has Grown at 248.79%

over average net sales of the previous four periods of USD 13.97 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Interest Coverage Ratio

Highest at 441.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at USD 432.7 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

Highest at USD 86.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 48.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 318.57 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.75% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales