Home Sectors Consumer Cyclical Current Valuation: American Axle And Manufacturing (NYSE: AXL)

Current Valuation: American Axle And Manufacturing (NYSE: AXL)


American Axle And Manufacturing trades as part of the autos industry and is in the consumer cyclical sector. The company CEO is David C. Dauch. American Axle and Mfg Inc manufactures, engineers, designs and validates driveline systems and drivetrain components and chassis modules. Its products are mostly used in light trucks, Sports Utility Vehicles, commercial vehicles and passenger cars.

Previous Intraday Trading Performance:

The AXL stock showed a previous change of 4.62% with an open at 12.46 and a close of 12.92. It reached an intraday high of 13.03 and a low of 12.27.

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The stock has a market cap of $1.4b with 111.7m shares outstanding, of which the float is 108.2m shares. Trading volume reached 3,977,197 shares compared to its average volume of 2,642,372 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, American Axle And Manufacturing shares returned -17.81% and in the past 30 trading days it returned -26.76%. Over three months, it changed -25.32%. In one year it has changed -27.86% and within that year its 52-week high was 19.63 and its 52-week low was 11.26. AXL stock is 14.74% above its 52 Week Low.

Our calculations show a 200 day moving average of 16.28 and a 50 day moving average of 16.61. Currently AXL stock is trading -20.63% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 3.27 that ended on 31st of December 2017, which according to the previous close, that is a PE of 3.95. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.90. The TTM EPS is 3.73, which comes to a TTM PE of 3.46. Historically, the PE high was 3.95 and the PE low was 2.20. If the stock reached its PE low, that would represent a price of 8.22, which is a decrease of -36.42%.

The following are the last four quarter reported earnings per share:
09-30-2018:  0.63
06-30-2018:  1.23
03-31-2018:  0.98
12-31-2017:  0.89

Base on our calculations, the intrinsic value per share is 34.45, which means it is possibly undervalued and has a margin of safety of 62.50%

Indicators to Watch:

Based on the latest filings, there is 68.30% of institutional ownership. Short-interest is 10,162,521, which is 9.10% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.87. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.41

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 24.54%, return on assets is 4.92%, profit margin is 5.56%, price-to-sales is 0.19 and price-to-book is 0.75.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 5  :Past Performance Score
 3  :Financial Strength Score
 0  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.