American Stock Story

AXL
 Stock
  

USD 9.23  0.73  8.59%   

American Axle Manufa is scheduled to announce its earnings today. American Axle Enterprise Value is relatively stable at the moment as compared to the past year. The company's current Enterprise Value is estimated at 3.98 Billion. Free Cash Flow is expected to hike to about 387.6 M this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to nearly 671.6 M. While some of us are becoming more enthusiastic about consumer cyclical space, let's summarize American Axle Manufacturing in greater detail to make a better estimate of its debt utilization.
Published over three months ago
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American Axle Sentiment by News Outlets

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American Axle Manufa Historical Investor Sentiment

Investor biases related to American Axle's public news can be used to forecast risks associated with investment in American. The trend in average sentiment can be used to explain how an investor holding American can time the market purely based on public headlines and social activities around American Axle Manufacturing. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
American Axle's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for American Axle's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average American Axle's news discussions. The higher the estimate score, the more favorable is the investor's outlook on American Axle.

American Axle Manufa Twitter Pulse

Investors have realized that leveraging social media to get the fastest information affecting stock prices isn't a theory anymore, it is a reality, and Twitter offers a platform that can outpace even the most trustworthy news aggregators. The influence of social media outlets on stock markets and stock prices of entities such as American Axle Manufacturing has been proven in recent years. We extract public sentiment from Twitter posts that could be utilized to determine whether American Axle's prices will increase or decrease.
Twitter's metrics such as likes, followers, and engagement can be good indicators of the reliance and probability of reaction to a specific tweet regarding American Axle Manufacturing. Our Twitter sentiment analysis of American Stock helps investors make informed decisions by leveraging the power of the community. It is a perfect supplementary tool for any beginner or an experienced trader.

American Axle Maximum Pain Price across 2022-08-19 Option Contracts

American Axle's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of American Axle close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of American Axle's options.

Thinking to quit American (NYSE:AXL) based on its current debt commitments?

The company has 3.27 B in debt with debt to equity (D/E) ratio of 7.56, demonstrating that American Axle may be unable to create cash to meet all of its financial commitments.
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 167.36 percent. This denotes that the company is making $1.67 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.
American Axle financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of American Axle, including all of American Axle's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of American Axle assets, the company is considered highly leveraged. Understanding the composition and structure of overall American Axle debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding American Total Liabilities

American Axle Manufa liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. American Axle Manufa has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on American Axle balance sheet include debt obligations and money owed to different American Axle vendors, workers, and loan providers. Below is the chart of American short long-term liabilities accounts currently reported on its balance sheet.
You can use American Axle Manufacturing financial leverage analysis tool to get a better grip on understanding its financial position

How important is American Axle's Liquidity

American Axle financial leverage refers to using borrowed capital as a funding source to finance American Axle Manufacturing ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. American Axle financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between American Axle's total debt and its cash.

Details

American Axle Manufa reported the last year's revenue of 5.36 B. Total Income to common stockholders was 86.2 M with profit before taxes, overhead, and interest of 592 M.

Asset Breakdown

3.9 B
Assets Non Current
963.2 M
Goodwill
1.8 B
Current Assets
Total Assets5.69 Billion
Current Assets1.81 Billion
Assets Non Current3.88 Billion
Goodwill963.23 Million
Tax Assets153.12 Million

Analysis of American Axle Manufa

American Axle new variance upsurges over 15.52.
As of the 6th of May, American Axle shows the risk adjusted performance of (0.07), and Mean Deviation of 2.94. American Axle Manufa technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed and interpolated nineteen technical drivers for American Axle Manufacturing, which can be compared to its rivals. Please confirm American Axle Manufa standard deviation, as well as the relationship between the maximum drawdown and expected short fall to decide if American Axle Manufa is priced correctly, providing market reflects its regular price of 7.07 per share. Given that American Axle has jensen alpha of (0.05), we suggest you to validate American Axle Manufacturing's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While few other entities in the auto parts industry are either recovering or due for a correction, American Axle may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 6th of May 2022, we believe American Axle is currently undervalued. It actively responds to the market and projects below average chance of bankruptcy in the next two years. Our ongoing 90 days advice on the company is Hold.

Editorial Staff

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 Gabriel Shpitalnik 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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