American Story

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AXL -- USA Stock  

USD 9.77  0.72  6.86%

American Axle Manufa is scheduled to announce its earnings today. The next earnings report is expected on the 14th of May 2021. The stock continues to experience an active downward rally. As some millenniums are still trying to avoid consumer cyclical space, I will try to summarize American Axle Manufacturing a little further in order to understand its potential as a viable investment. We will summarize the reasons why it is still possible for the company to generate above-average margins given the new economic outlook.
Published over two weeks ago
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Will American Axle Manufacturing price hike in March?
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 146.75 percent. This denotes that the company is making $1.47 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.
What is the right price you would pay to acquire a share of American Axle? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

What is happening with American Axle Manufacturing this year

Annual and quarterly reports issued by American Axle Manufacturing are formal financial statements that are published yearly and quarterly and sent to American stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as American Axle often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How American utilizes its cash?

To perform a cash flow analysis of American Axle, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash American Axle is receiving and how much cash it distributes out in a given period. The American Axle cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
American Axle Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 437.63 Million

Breaking down the case for American Axle

Earning per share calculations of the firm is based on official Zacks consensus of 4 analysts regarding American Axle's future annual earnings. Given the historical accuracy of 63.92%, the future earnings per share of the company is estimated to be -0.072 with the lowest and highest values of -0.1 and -0.05, respectively. Please note that this consensus of annual earnings estimates for American Axle Manufa is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is American a risky opportunity?

Let's check the volatility. American is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind American (NYSE:AXL) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of an American Axle stock makes you a part-owner of that company.

American Axle Manufacturing Current Consensus

Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering American Axle Manufa. The American consensus assessment is calculated by taking the average estimates from all of the analysts covering American Axle

Strong Buy
Strong Sell
Strong Buy337.5
Strong Sell112.5

A growth case for American Axle

The sortino ratio is down to 0.16 as of today. American Axle Manufacturing shows above-average downside volatility for the selected time horizon. We advise investors to inspect American Axle Manufacturing further and ensure that all market timing and asset allocation strategies are consistent with the estimation of American Axle future alpha.

Our Bottom Line On American Axle Manufa

While some other companies in the auto parts industry are either recovering or due for a correction, American may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current American valuation and our trade advice on American Axle is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to American Axle.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of American Axle Manufacturing. Please refer to our Terms of Use for any information regarding our disclosure principles.

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