Exploring the Mystery: Evaluating American Axle & Manufacturing Holdings,
June 30, 2023
🌥️Trending News
American Axle & Manufacturing ($NYSE:AXL) Holdings, Inc. is an American automotive parts manufacturer that has been a significant player in the industry for decades. It is renowned for its high-quality products and has become a reliable source of parts for various carmakers. Since then, it has grown to become one of the largest companies in the automotive industry. It has a strong financial record and has seen consistent growth in revenue over the past few years. Its products are in demand, and it has an established presence in the aftermarket parts sector.
Despite its success, there is still a great deal of mystery surrounding American Axle & Manufacturing Holdings, Inc. and its future prospects. As such, investors need to take a closer look at the company and evaluate its potential for long-term success. This article provides an overview of the company, its financials, and its prospects for the future.
Market Price
On Thursday, AAM opened at $8.2 and closed at $8.3, a 2.5% increase from its closing price of $8.1 the day before. This minor bump has been the highlight of AAM’s recent activity in the stock market, leaving many investors questioning what is going on with the company. As the stock market continues to fluctuate, curious investors can use the information available to make informed decisions about investing in AAM. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AXL. More…
| Total Revenues | Net Income | Net Margin |
| 5.86k | 55.5 | 1.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AXL. More…
| Operations | Investing | Financing |
| 412.5 | -242.2 | -227.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AXL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.45k | 4.83k | 5.32 |
Key Ratios Snapshot
Some of the financial key ratios for AXL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.6% | -17.5% | 4.1% |
| FCF Margin | ROE | ROA |
| 3.7% | 23.8% | 2.7% |
Analysis
GoodWhale is here to help you analyze AMERICAN AXLE & MANUFACTURING’s fundamentals and make an informed decision. After carefully assessing the company’s financials, we have concluded that they are a medium risk investment in terms of their financial and business aspects. That said, this doesn’t mean that there aren’t any red flags. Upon further inspection, GoodWhale has identified two risk warnings within the company’s income sheet and balance sheet. If you’d like to take a closer look, be sure to register on the GoodWhale website for more detailed information. More…
Peers
It operates in four segments: Driveline, Metal Formed Products, Castings and Forgings, and Other. American Axle & Mfg Holdings Inc has several competitors, such as Rane Holdings Ltd, HGears AG, and UCAL Fuel Systems Ltd, all of which are engaged in similar areas of business.
– Rane Holdings Ltd ($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 (AAM) is an investment company that specializes in the production of axle and drivetrain components, chassis modules, and related systems for the automotive and light truck industries. AAM’s investment analysis involves assessing the company’s financials, competitive position, and strategic prospects. The analysis includes considering AAM’s strengths such as its diversified customer base and the potential for growth through new product development. It also involves evaluating AAM’s weaknesses such as its dependence on the automotive industry for its revenues and its vulnerability to macroeconomic factors such as slowdowns in the automotive sector.
Additionally, analysts evaluate AAM’s market position, risk profile, and future opportunities for potential investors. The analysis of AAM is an important step in determining whether or not it is a good investment.
