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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.12
AXLL's Cash to Debt is ranked lower than
63% of the 989 Companies
in the Global Chemicals industry.

( Industry Median: 0.68 vs. AXLL: 0.12 )
AXLL' s 10-Year Cash to Debt Range
Min: 0   Max: 0.36
Current: 0.12

0
0.36
Equity to Asset 0.44
AXLL's Equity to Asset is ranked higher than
50% of the 989 Companies
in the Global Chemicals industry.

( Industry Median: 0.56 vs. AXLL: 0.44 )
AXLL' s 10-Year Equity to Asset Range
Min: -0.09   Max: 0.44
Current: 0.44

-0.09
0.44
Interest Coverage 4.78
AXLL's Interest Coverage is ranked lower than
54% of the 655 Companies
in the Global Chemicals industry.

( Industry Median: 16.51 vs. AXLL: 4.78 )
AXLL' s 10-Year Interest Coverage Range
Min: 0.53   Max: 13.06
Current: 4.78

0.53
13.06
F-Score: 7
Z-Score: 1.73
M-Score: -1.17
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 7.95
AXLL's Operating margin (%) is ranked higher than
78% of the 969 Companies
in the Global Chemicals industry.

( Industry Median: 5.76 vs. AXLL: 7.95 )
AXLL' s 10-Year Operating margin (%) Range
Min: -4.81   Max: 30.32
Current: 7.95

-4.81
30.32
Net-margin (%) 3.54
AXLL's Net-margin (%) is ranked higher than
66% of the 969 Companies
in the Global Chemicals industry.

( Industry Median: 3.76 vs. AXLL: 3.54 )
AXLL' s 10-Year Net-margin (%) Range
Min: -8.83   Max: 17.24
Current: 3.54

-8.83
17.24
ROE (%) 6.34
AXLL's ROE (%) is ranked higher than
69% of the 961 Companies
in the Global Chemicals industry.

( Industry Median: 6.54 vs. AXLL: 6.34 )
AXLL' s 10-Year ROE (%) Range
Min: -135.18   Max: 392.93
Current: 6.34

-135.18
392.93
ROA (%) 2.81
AXLL's ROA (%) is ranked higher than
64% of the 974 Companies
in the Global Chemicals industry.

( Industry Median: 3.39 vs. AXLL: 2.81 )
AXLL' s 10-Year ROA (%) Range
Min: -16   Max: 36.76
Current: 2.81

-16
36.76
ROC (Joel Greenblatt) (%) 17.49
AXLL's ROC (Joel Greenblatt) (%) is ranked higher than
82% of the 970 Companies
in the Global Chemicals industry.

( Industry Median: 10.99 vs. AXLL: 17.49 )
AXLL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -14.71   Max: 85.52
Current: 17.49

-14.71
85.52
Revenue Growth (%) -6.20
AXLL's Revenue Growth (%) is ranked lower than
58% of the 788 Companies
in the Global Chemicals industry.

( Industry Median: 5.10 vs. AXLL: -6.20 )
AXLL' s 10-Year Revenue Growth (%) Range
Min: -66.9   Max: 25
Current: -6.2

-66.9
25
EBITDA Growth (%) 7.90
AXLL's EBITDA Growth (%) is ranked higher than
76% of the 685 Companies
in the Global Chemicals industry.

( Industry Median: 4.00 vs. AXLL: 7.90 )
AXLL' s 10-Year EBITDA Growth (%) Range
Min: -86.1   Max: 145
Current: 7.9

-86.1
145
EPS Growth (%) 24.60
AXLL's EPS Growth (%) is ranked higher than
86% of the 635 Companies
in the Global Chemicals industry.

( Industry Median: 3.20 vs. AXLL: 24.60 )
AXLL' s 10-Year EPS Growth (%) Range
Min: -42.6   Max: 57.8
Current: 24.6

-42.6
57.8
» AXLL's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

AXLL Guru Trades in Q1 2013

Leon Cooperman 496,650 sh (New)
Steven Cohen 159,370 sh (New)
Scott Black 4,790 sh (New)
Jim Simons 366,036 sh (New)
Joel Greenblatt 117,110 sh (New)
Chuck Royce 30,000 sh (New)
Paul Tudor Jones 11,000 sh (+13.4%)
Pioneer Investments 260,156 sh (-26.44%)
» More
Q2 2013

AXLL Guru Trades in Q2 2013

David Tepper 1,877,715 sh (New)
Third Avenue Management 678,772 sh (New)
Chuck Royce 88,000 sh (+193.33%)
Paul Tudor Jones 12,500 sh (+13.64%)
Pioneer Investments 260,156 sh (unchged)
Jim Simons Sold Out
Scott Black Sold Out
Leon Cooperman Sold Out
Joel Greenblatt 42,255 sh (-63.92%)
Steven Cohen 2,590 sh (-98.37%)
» More
Q3 2013

AXLL Guru Trades in Q3 2013

Ray Dalio 10,702 sh (New)
Jim Simons 427,436 sh (New)
Steven Cohen 12,322 sh (+375.75%)
Third Avenue Management 1,193,189 sh (+75.79%)
Chuck Royce 121,000 sh (+37.5%)
Pioneer Investments 263,856 sh (+1.42%)
Joel Greenblatt Sold Out
David Tepper 1,840,215 sh (-2%)
Paul Tudor Jones 6,700 sh (-46.4%)
» More
Q4 2013

AXLL Guru Trades in Q4 2013

Michael Price 20,000 sh (New)
Steven Cohen 63,100 sh (+412.09%)
Jim Simons 640,136 sh (+49.76%)
Chuck Royce 139,440 sh (+15.24%)
Ray Dalio Sold Out
Paul Tudor Jones Sold Out
Third Avenue Management 1,189,524 sh (-0.31%)
Pioneer Investments 260,156 sh (-1.4%)
David Tepper 1,683,515 sh (-8.52%)
» More
» Details

Insider Trades

Latest Guru Trades with AXLL

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Michael Price 2013-12-31 New Buy0.12%$36.65 - $49.95 $ 47.9211%20000
Ray Dalio 2013-12-31 Sold Out $36.65 - $49.95 $ 47.9211%0
Joel Greenblatt 2013-09-30 Sold Out 0.08%$37.54 - $45.64 $ 47.9215%0
Ray Dalio 2013-09-30 New Buy$37.54 - $45.64 $ 47.9215%10702
Leon Cooperman 2013-06-30 Sold Out 0.48%$41.06 - $60.1 $ 47.92-2%0
Joel Greenblatt 2013-06-30 Reduce -63.92%0.24%$41.06 - $60.1 $ 47.92-2%42255
Scott Black 2013-06-30 Sold Out 0.04%$41.06 - $60.1 $ 47.92-2%0
Leon Cooperman 2013-03-31 New Buy0.48%$41.28 - $64.65 $ 47.92-12%496650
Joel Greenblatt 2013-03-31 New Buy0.37%$41.28 - $64.65 $ 47.92-12%117110
Scott Black 2013-03-31 New Buy0.04%$41.28 - $64.65 $ 47.92-12%4790
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Axiall Corp

Third Avenue Management Comments on Axiall - Sep 12, 2013

The largest single allocation of capital during the quarter was made to Axiall Common (AXLL). Axiall is a company formed in January of this year with the closing of a merger between publicly-listed Georgia Gulf, a PVC resin and building products company, and the commodity chemical business of PPG Industries, primarily chlor-alkali (chlorine and caustic). PVC resin and PVC building products are economically sensitive and closely linked to construction; however the past few years have seen a partial de-coupling as a surfeit of domestically produced natural gas and derivatives have lowered energy and raw material costs, thus advantaging U.S. chlor-alkali and PVC resin production relative to most global capacity and promoting exports.

Georgia Gulf, Axiall's predecessor, is a company we first investigated in 2007.It was a peer of Westlake Chemical, a portfolio holding that we exited earlier this year as the valuation exceeded our estimates of intrinsic value. From our standpoint, Georgia Gulf was poorly capitalized. Our sister fund, Third Avenue Focused Credit Fund would go on to make a successful investment in Georgia Gulf's distressed debt in late 2009, following the ejection of prior management and a capital restructuring. Were-sharpened our pencils in January of 2012 when Westlake made an equity investment and a hostile bid for the company – the former proving successful while the latter not – but ultimately lacked comfort in an improved, but still unsuitable, balance sheet per our standards for an equity investment.

In July 2012, Georgia Gulf management engineered a reverse Morris Trust transaction1 with PPG that would exchange cash and an equity stake for PPG's commodity chemical business, a deal that ultimately closed January 28, 2013. The combination of the two sets of assets would benefit from:

• Vertical Integration – control of chlorine production, a major ingredient in the company's PVC resin production,should allow more efficient production of both chlorine and PVC resin as production can be coordinated and optimized;

• Improved Balance Sheet – the size of the transaction and the use of shares as currency reduced the company's debt relative to the operating earnings of the combined businesses;

• Reduced Cyclicality – prices for caustic, a saleable and unavoidable byproduct of most chlorine production, tend to be counter cyclical as chlorine demand follows economic activity and is scarcer in slower periods.

PPG, in turn, offered Axiall shares to its own shareholders as consideration in a share buyback timed with the combination close; those PPG shareholders who accepted Axiall Common would appear to have been sorely disappointed, however, when Axiall's March quarter results fell short of Wall Street's expectations, creating selling pressure on the shares and an attractive entry point for the Fund's investment.

The Fund's cost basis equates to less than six times the pro forma,mid-cycle, pre-tax cash flow of the combined entities or about nine times earnings and an approximately 35% discount from a conservative estimate of replacement cost, valuations suggesting a wide margin of safety in the investment. Analytically, there are a number of items that could throw investors off the scent, at least temporarily. For one, the historical reported numbers for Axiall are not meaningful in isolation given the absence of PPG's assets prior to January 28, 2013. A little digging through corporate filings revealed, however, that the operating results for the PPG assets were available to those taking the time to do the necessary work. Fair value accounting and expenses related to the merger further muddied the waters for those analysts dependent on historical reported results rather than existing assets.

Axiall management would appear to have multiple avenues to create shareholder value over time, from efficiencies achieved through the businesses combination, to attractive reinvestment opportunities via further vertical integration into ethylene(the other key ingredient for PVC) or capacity expansions, or a sale of the business as an attractive set of assets to a strategic buyer looking for its own vertical integration. A protracted disconnect between U.S.domestic natural gas prices and global energy prices—solidifying a feed stock cost advantage—could be a pleasant surprise;while industry capacity additions pose potential risks, they will likely require a number of years to materialize.

From Third Avenue Management’s third quarter 2013 letter to shareholders.

Check out Martin Whitman latest stock trades

Top Ranked Articles about Axiall Corp

Third Avenue Management Comments on Axiall
The largest single allocation of capital during the quarter was made to Axiall Common (AXLL). Axiall is a company formed in January of this year with the closing of a merger between publicly-listed Georgia Gulf, a PVC resin and building products company, and the commodity chemical business of PPG Industries, primarily chlor-alkali (chlorine and caustic). PVC resin and PVC building products are economically sensitive and closely linked to construction; however the past few years have seen a partial de-coupling as a surfeit of domestically produced natural gas and derivatives have lowered energy and raw material costs, thus advantaging U.S. chlor-alkali and PVC resin production relative to most global capacity and promoting exports. Read more...
Delphi Management - Five Sell Outs
According to GuruFocus research, Delphi Management’s founder and president Scott Black was actively trading in the second quarter of 2013, unloading holdings in chemical companies, restaurants, and equipment manufacturing. Here are the details of the five sells made by Guru Scott Black as of June 30, 2013. Here’s an in-depth look at what Scott Black is buying. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 20.60
AXLL's P/E(ttm) is ranked higher than
59% of the 808 Companies
in the Global Chemicals industry.

( Industry Median: 18.40 vs. AXLL: 20.60 )
AXLL' s 10-Year P/E(ttm) Range
Min: 0.35   Max: 76.28
Current: 20.6

0.35
76.28
P/B 1.28
AXLL's P/B is ranked higher than
71% of the 960 Companies
in the Global Chemicals industry.

( Industry Median: 1.59 vs. AXLL: 1.28 )
AXLL' s 10-Year P/B Range
Min: 0.43   Max: 8.11
Current: 1.28

0.43
8.11
P/S 0.69
AXLL's P/S is ranked higher than
67% of the 1003 Companies
in the Global Chemicals industry.

( Industry Median: 0.96 vs. AXLL: 0.69 )
AXLL' s 10-Year P/S Range
Min: 0.01   Max: 0.95
Current: 0.69

0.01
0.95
PFCF 31.53
AXLL's PFCF is ranked lower than
53% of the 493 Companies
in the Global Chemicals industry.

( Industry Median: 19.52 vs. AXLL: 31.53 )
AXLL' s 10-Year PFCF Range
Min: 0.19   Max: 60.48
Current: 31.53

0.19
60.48
EV-to-EBIT 12.46
AXLL's EV-to-EBIT is ranked higher than
71% of the 844 Companies
in the Global Chemicals industry.

( Industry Median: 14.90 vs. AXLL: 12.46 )
AXLL' s 10-Year EV-to-EBIT Range
Min: 4.2   Max: 99.7
Current: 12.46

4.2
99.7
PEG 0.70
AXLL's PEG is ranked higher than
82% of the 501 Companies
in the Global Chemicals industry.

( Industry Median: 1.60 vs. AXLL: 0.70 )
AXLL' s 10-Year PEG Range
Min: 0.33   Max: 25.41
Current: 0.7

0.33
25.41

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.20
AXLL's Dividend Yield is ranked lower than
67% of the 759 Companies
in the Global Chemicals industry.

( Industry Median: 1.76 vs. AXLL: 1.20 )
AXLL' s 10-Year Dividend Yield Range
Min: 0.2   Max: 14.61
Current: 1.2

0.2
14.61
Dividend Payout 0.20
AXLL's Dividend Payout is ranked higher than
80% of the 625 Companies
in the Global Chemicals industry.

( Industry Median: 0.31 vs. AXLL: 0.20 )
AXLL' s 10-Year Dividend Payout Range
Min: 0.07   Max: 0.84
Current: 0.2

0.07
0.84
Yield on cost (5-Year) 1.20
AXLL's Yield on cost (5-Year) is ranked lower than
70% of the 775 Companies
in the Global Chemicals industry.

( Industry Median: 2.00 vs. AXLL: 1.20 )
AXLL' s 10-Year Yield on cost (5-Year) Range
Min: 0.2   Max: 14.61
Current: 1.2

0.2
14.61
Share Buyback Rate -26.10
AXLL's Share Buyback Rate is ranked lower than
60% of the 570 Companies
in the Global Chemicals industry.

( Industry Median: -1.10 vs. AXLL: -26.10 )
AXLL' s 10-Year Share Buyback Rate Range
Min: 7.2   Max: -191.5
Current: -26.1

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.18
AXLL's Price/DCF (Projected) is ranked higher than
76% of the 426 Companies
in the Global Chemicals industry.

( Industry Median: 1.40 vs. AXLL: 1.18 )
AXLL' s 10-Year Price/DCF (Projected) Range
Min: 0.06   Max: 1.3
Current: 1.18

0.06
1.3
Price/Median PS Value 1.93
AXLL's Price/Median PS Value is ranked lower than
75% of the 915 Companies
in the Global Chemicals industry.

( Industry Median: 1.10 vs. AXLL: 1.93 )
AXLL' s 10-Year Price/Median PS Value Range
Min: 0.04   Max: 4.8
Current: 1.93

0.04
4.8
Earnings Yield (Greenblatt) 8.00
AXLL's Earnings Yield (Greenblatt) is ranked higher than
73% of the 886 Companies
in the Global Chemicals industry.

( Industry Median: 6.60 vs. AXLL: 8.00 )
AXLL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1   Max: 23.9
Current: 8

1
23.9
Forward Rate of Return (Yacktman) 1.06
AXLL's Forward Rate of Return (Yacktman) is ranked higher than
65% of the 596 Companies
in the Global Chemicals industry.

( Industry Median: 6.16 vs. AXLL: 1.06 )
AXLL' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -16   Max: 254.2
Current: 1.06

-16
254.2

Business Description

Industry: Chemicals » Chemicals
Compare:BASFY, DD, SHECY, URALL, APD » details
Traded in other countries:HGQN.Germany
Axiall Corp a Delaware company, was incorporated in 1984. The Company is a North American manufacturer and international marketer of chemicals and building products. Its three reportable segments are chlorovinyls; building products; and aromatics. The chlorovinyls segment produces a highly integrated chain of products, including chlor-alkali and derivative products ("EDC"), chlorinated solvents, calcium hypochlorite, hydrochloric acid also known as muriatic acid ("HCL") and phosgene derivatives and compound products (vinyl compounds and compound additives and plasticizers). Its chlor-alkali and derivative products are primarily chemical products produced to meet globally accepted standards for product grades and classifications. The Company manufacture and extrude vinyl window profiles including frames, sashes, trim and other components, as well as vinyl patio door components and fabricated patio doors, which are sold primarily to window and door fabricators. The Aromatics reportable segment also contains two commodity chemical product groups: cumene products; and phenol and acetone. The building products businesses source a majority of their raw materials from its chlorovinyls chemicals business in the form of vinyl resins, vinyl compounds, and compound additives. In its chlorovinyls segment, the Company produces chlorine and its co-product caustic soda by electrolysis of salt brine. It produces vinyl resins by polymerization of VCM in a batch reactor process. In its aromatics segment, the Company produces cumene utilizing benzene and refinery grade propylene purchased from third parties. The Company also produces some pipe fittings through injection molding. The raw materials it purchases from third parties include benzene, ethylene, propylene, compound additives, natural gas and chlorine. The principal raw material it uses in production of its building and home improvement product lines is vinyl resin. The Company faces competition from numerous manufacturers in its chlorovinyls, aromatics and building and home improvement products businesses. The Company's operations are subject to increasingly stringent federal, state and local laws and regulations relating to environmental quality.

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