While not a mind-blowing move, it is good to see that the American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) share price has gained 16% in the last three months. But if you look at the last five years the returns have not been good. After all, the share price is down 47% in that time, significantly under-performing the market.
The recent uptick of 8.4% could be a positive sign of things to come, so let’s take a lot at historical fundamentals.
Because American Axle & Manufacturing Holdings made a loss in the last twelve months, we think the market is probably more focused on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow faster revenue, but in that case one does expect good top-line growth.
In the last five years American Axle & Manufacturing Holdings saw its revenue shrink by 3.3% per year. While far from catastrophic that is not good. The stock hasn’t done well for shareholders in the last five years, falling 8%, annualized. But it doesn’t surprise given the falling revenue. It might be worth watching for signs of a turnaround – buyers are probably expecting one.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling American Axle & Manufacturing Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While it’s never nice to take a loss, American Axle & Manufacturing Holdings shareholders can take comfort that their trailing twelve month loss of 11% wasn’t as bad as the market loss of around 16%. Of far more concern is the 8% pa loss served to shareholders over the last five years. While the losses are slowing we doubt many shareholders are happy with the stock. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that are currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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