American Axle Valuation
| AXL Stock | USD 5.25 0.18 3.31% |
At this time, the firm appears to be undervalued. American Axle Manufa shows a prevailing Real Value of $6.59 per share. The current price of the firm is $5.25. Our model approximates the value of American Axle Manufa from analyzing the firm fundamentals such as return on equity of 0.0599, and Profit Margin of 0.01 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting American Axle's valuation include:
Price Book 1.1344 | Enterprise Value | Enterprise Value Ebitda 3.9291 | Price Sales 0.1008 | Forward PE 12.1212 |
Undervalued
Today
Please note that American Axle's price fluctuation is slightly risky at this time. Calculation of the real value of American Axle Manufa is based on 3 months time horizon. Increasing American Axle's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the American stock is determined by what a typical buyer is willing to pay for full or partial control of American Axle Manufacturing. Since American Axle is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Stock. However, American Axle's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 5.25 | Real 6.59 | Target 7.69 | Hype 5.19 | Naive 6.13 |
The intrinsic value of American Axle's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence American Axle's stock price.
Estimating the potential upside or downside of American Axle Manufacturing helps investors to forecast how American stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Axle more accurately as focusing exclusively on American Axle's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use American Axle's intrinsic value based on its ongoing forecasts of American Axle's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against American Axle's closest peers.
American Axle Cash |
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American Valuation Trend
Knowing American Axle's actual value is paramount for traders when making sound investment determinations. Using both American Axle's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
American Revenue by Product
American Axle Total Value Analysis
American Axle Manufacturing is presently anticipated to have company total value of 2.82 B with market capitalization of 617.3 M, debt of 2.74 B, and cash on hands of 511.5 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the American Axle fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
2.82 B | 617.3 M | 2.74 B | 511.5 M |
American Axle Investor Information
About 96.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.13. Some equities with similar Price to Book (P/B) outperform the market in the long run. American Axle Manufa last dividend was issued on the 4th of December 2008. The entity had 117:1000 split on the 5th of October 2018. Based on the measurements of operating efficiency obtained from American Axle's historical financial statements, American Axle Manufacturing may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.023 | 0.0394 |
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| Operating Income | 175.3 M | 241.4 M |
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American Axle Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. American Axle has an asset utilization ratio of 121.05 percent. This suggests that the Company is making $1.21 for each dollar of assets. An increasing asset utilization means that American Axle Manufacturing is more efficient with each dollar of assets it utilizes for everyday operations.American Axle Ownership Allocation
The majority of American Axle Manufacturing outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in American Axle Manufa to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in American Axle. Please pay attention to any change in the institutional holdings of American Axle Manufacturing as this could imply that something significant has changed or is about to change at the company.American Axle Profitability Analysis
The company reported the last year's revenue of 6.12 B. Total Income to common stockholders was 35 M with profit before taxes, overhead, and interest of 741.4 M.About American Axle Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of American Axle Manufacturing. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of American Axle Manufa based exclusively on its fundamental and basic technical indicators. By analyzing American Axle's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of American Axle's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of American Axle. We calculate exposure to American Axle's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of American Axle's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 741.4 M | 524.1 M | |
| Pretax Profit Margin | 0.01 | 0.01 | |
| Operating Profit Margin | 0.04 | 0.02 | |
| Net Profit Margin | 0.01 | 0.01 | |
| Gross Profit Margin | 0.12 | 0.09 |
American Axle Growth Indicators
Investing in growth stocks can be very risky. If the company such as American Axle does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 117.7 M | |
| Quarterly Earnings Growth Y O Y | 1.204 | |
| Forward Price Earnings | 12.1212 |
American Axle Current Valuation Indicators
American Axle's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final American Axle's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as American Axle, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use American Axle's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes American Axle's worth.When determining whether American Axle Manufa is a strong investment it is important to analyze American Axle's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Axle's future performance. For an informed investment choice regarding American Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Axle Manufacturing. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Axle. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Axle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.204 | Earnings Share 0.29 | Revenue Per Share | Quarterly Revenue Growth (0.06) | Return On Assets |
The market value of American Axle Manufa is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Axle's value that differs from its market value or its book value, called intrinsic value, which is American Axle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Axle's market value can be influenced by many factors that don't directly affect American Axle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Axle's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Axle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Axle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.