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American Axle & Manufacturing’s Top and Bottom Line Rose in 4Q15

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Price movement of American Axle & Manufacturing

American Axle & Manufacturing Holdings (AXL) rose by 0.28% to close at $14.43 at the end of the third week of February 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis is 22.8%, 11.4%, and -23.8%, respectively.

At times, the stock has broken the support of all moving day averages. Currently, AXL is trading 11.4% above its 20-day moving average, 10.6% below its 50-day moving average, and 28.4% below its 200-day moving average.

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The WisdomTree SmallCap Earnings ETF (EES) invests 0.49% of its holdings in AXL. The ETF tracks an index of US small-cap stocks weighted by firms’ earnings from core operations. The index is a small-cap subset of the WisdomTree Earnings Index. The YTD price movement of EES is -9.4% as of February 18, 2016.

The market caps of AXL’s competitors are as follows:

  • Magna International (MGA): $13.8 billion
  • Tenneco (TEN): $2.6 billion
  • Dana Holdings (DAN): $1.8 billion

Performance of American Axle & Manufacturing Holdings in 4Q15 and fiscal 2015

American Axle & Manufacturing Holdings reported 4Q15 net sales of $958.4 million, a rise of 2.0% compared to net sales of $939.5 million in 4Q14. The company’s gross profit and operating income rose by 43.7% and 125.6%, respectively, in 4Q15 compared to 4Q14.

The company’s net income and EPS (earnings per share) rose to $62.9 million and $0.81, respectively, in 4Q15, compared to $13.2 million and $0.17, respectively, in 4Q14. The company reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $137.5 million in 4Q15, a rise of 1.8% compared to the prior-year period.

Fiscal 2015 results

In fiscal 2015, AXL reported net sales of $3,903.1 million, a fall of 5.6% YoY (year-over-year). Its net income and EPS rose to $235.6 million and $3.02, respectively, in fiscal 2015, compared to $143.0 million and $1.85, respectively, in fiscal 2014.

Meanwhile, its cash and cash equivalents rose by 13.4%, and inventories fell by 7.4% in fiscal 2015. Its current ratio and debt-to-equity ratio fell to 1.60 and 9.6, respectively, in fiscal 2015, compared to 1.65 and 27.6, respectively, in fiscal 2014. It reported free cash flow of $189.5 million in fiscal 2015, a rise of 53.9% YoY.

The PE (price-to-earnings) and PBV (price-to-book value) ratios of AXL are 4.8x and 3.6x, respectively, as of February 19, 2016.

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