American Axle & Manufacturing Holdings, Inc. (AXL) Company Bio
American Axle & Manufacturing Holdings designs, engineers, validates, and manufactures driveline and drivetrain systems, and related components and chassis modules for the automotive industry. The company was founded in 1994 and is based in Detroit, Michigan.
AXL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AXL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that American Axle & Manufacturing Holdings Inc ranked in the 26th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of American Axle & Manufacturing Holdings Inc, consider:
16% of the company's capital comes from equity, which is greater than merely 6.22% of stocks in our cash flow based forecasting set.
American Axle & Manufacturing Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.48. This coverage rate is greater than that of just 11.42% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 17. This value is greater than 95.84% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AXL, try DNKN, LB, FTDR, LEVI, and TPCO.
In a 6-6 split, the U.S. Court of Appeals for the Federal Circuit on Friday declined to review a panel decision that invalidated American Axle & Manufacturing Inc’s patent on a method of manufacturing automotive driveshafts because it was directed to a “law of nature” and therefore ineligible for a patent.
American Axle & Manufacturing, Inc. (AXL) Q2 2020 Results Conference Call Jul 31, 2020 10:00 AM ET Company Participants Jason Parsons - Director of Investor Relations David Dauch - Chairman and Chief Executive Officer Michael Simonte - President Christopher May - Vice President and Chief Financial Officer Conference Call Participants...