Charles Schwab Investment Management Sells Shares of American Axle & Manufacturing Holdings,
December 9, 2023
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Charles Schwab Investment Management Inc. recently sold a significant number of shares of American Axle & Manufacturing ($NYSE:AXL) Holdings, Inc. (AAM). AAM is a Detroit based manufacturing company specializing in the production of parts for trucks, SUVs, and commercial vehicles. They also produce driveline and drivetrain components for the automotive industry, as well as off-highway and industrial markets. AAM is one of the leaders in the industry and a major supplier for many of the world’s largest automakers.
Over the years it has diversified its portfolio and increased its presence in international markets. It also has a strong focus on innovation and technology, which has contributed to its growth.
Price History
AAM’s stock opened at $7.4 and closed at $7.6, up by 2.6% from its previous closing price of $7.4. The sale was part of a larger move by Charles Schwab to reduce its overall exposure to the auto parts manufacturer. In recent quarters, AAM has seen quarterly revenues decline, and its year-over-year net income figures have also declined. Despite this, the company has continued to remain committed to its long-term growth strategy and has taken steps to reduce costs and optimize operations in order to reduce the impact of current market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AXL. More…
| Total Revenues | Net Income | Net Margin |
| 6.01k | -1.3 | 0.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AXL. More…
| Operations | Investing | Financing |
| 491.7 | -172.3 | -177.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AXL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.47k | 4.86k | 5.24 |
Key Ratios Snapshot
Some of the financial key ratios for AXL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.5% | 16.1% | 3.3% |
| FCF Margin | ROE | ROA |
| 4.9% | 19.9% | 2.3% |
Analysis
At GoodWhale, we have analyzed the fundamentals of AMERICAN AXLE & MANUFACTURING and according to our Star Chart, the company is strong in terms of liquidity, medium in profitability, and weak in asset, dividend, and growth. We have also found that the company has a high health score of 8/10 with regard to its cashflows and debt, which indicates that it is capable of safely riding out any crisis without the risk of bankruptcy. Based on our analysis, we have concluded that AMERICAN AXLE & MANUFACTURING is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Investors who are interested in this type of company may be attracted to the fact that its stock price does not experience major fluctuations and provides a steady return. Additionally, the company’s moderate growth makes it an attractive option for investors who are looking for long-term investments. More…
Peers
It operates in four segments: Driveline, Metal Formed Products, Castings and Forgings, and Other. American Axle & Mfg Holdings Inc has several competitors, such as Rane Holdings Ltd, HGears AG, and UCAL Fuel Systems Ltd, all of which are engaged in similar areas of business.
– Rane Holdings Ltd ($BSE:505800)
Rane Holdings Ltd is a leading manufacturer and supplier of automotive components and systems, with a presence in the Indian, US, and European markets. The company has a market cap of 12.66B as of 2023, making it one of the largest players in the automotive industry. Its Return on Equity (ROE) is 10.29%, which indicates that the company is efficiently utilizing its equity to generate profits. The company has been able to maintain a steady growth rate over the years and is well poised to capitalize on the growing demand for automotive components.
– HGears AG ($BER:HGEA)
HGears AG is a global provider of high-quality gear drive components and systems for automotive, industrial, and agricultural applications. The company has a market cap of 83.2 million as of 2023, indicating that it is a relatively small and niche player in the industry. Its Return on Equity (ROE) of 2.74% indicates that the company is generating modest returns on its shareholders’ investments. HGears is committed to providing reliable, safe, and cost-effective solutions to its customers and has been able to maintain a steady growth rate over the years.
– UCAL Fuel Systems Ltd ($BSE:500464)
UCAL Fuel Systems Ltd is a leading manufacturer of automotive fuel systems, with a global presence across five continents. The company’s market cap is 2.77 billion as of 2023, reflecting its position as a major player in the automotive fuel systems industry. Additionally, UCAL Fuel Systems Ltd has achieved an impressive Return on Equity (ROE) of 7.9%, which is an indication of the firm’s strong performance and profitability. This high ROE shows that the company has been able to effectively utilize its equity base to generate high returns for its shareholders.
Summary
American Axle & Manufacturing Holdings, Inc. (AAM) is an automotive and commercial vehicle parts supplier that designs, engineers, manufactures and validates driveline and drivetrain systems, as well as related components and chassis modules for light trucks, sport utility vehicles, crossover vehicles, passenger cars and commercial vehicles. Charles Schwab Investment Management Inc. recently sold shares of AAM, indicating a shift in their investment strategy. Analysts have noted AAM’s strengths in customer relationships and product portfolio, as it has secured major contracts from well-known auto companies. As a result of the impressive fundamentals and upside potential, many investors are now bullish on AAM’s stock.
