Switch to:

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
55% of the 1105 Companies
in the Global Chemicals industry.

( Industry Median: 0.39 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
57% of the 1102 Companies
in the Global Chemicals industry.

( Industry Median: 0.51 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 1.75
AXLL's Interest Coverage is ranked lower than
61% of the 704 Companies
in the Global Chemicals industry.

( Industry Median: 20.76 vs. AXLL: 1.75 )
AXLL' s 10-Year Interest Coverage Range
Min: 0.53   Max: 13.06
Current: 1.75

0.53
13.06
F-Score: 6
Z-Score: 1.66
M-Score: -2.61
WACC vs ROIC
12.01%
2.69%
WACC
ROIC
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 : 4/10

vs
industry
vs
history
Operating margin (%) 2.94
AXLL's Operating margin (%) is ranked higher than
58% of the 1118 Companies
in the Global Chemicals industry.

( Industry Median: 5.98 vs. AXLL: 2.94 )
AXLL' s 10-Year Operating margin (%) Range
Min: -4.81   Max: 30.32
Current: 2.94

-4.81
30.32
Net-margin (%) 1.01
AXLL's Net-margin (%) is ranked higher than
53% of the 1120 Companies
in the Global Chemicals industry.

( Industry Median: 4.19 vs. AXLL: 1.01 )
AXLL' s 10-Year Net-margin (%) Range
Min: -8.83   Max: 17.24
Current: 1.01

-8.83
17.24
ROE (%) 1.80
AXLL's ROE (%) is ranked higher than
52% of the 1102 Companies
in the Global Chemicals industry.

( Industry Median: 7.36 vs. AXLL: 1.80 )
AXLL' s 10-Year ROE (%) Range
Min: -906.03   Max: 299.63
Current: 1.8

-906.03
299.63
ROA (%) 0.80
AXLL's ROA (%) is ranked higher than
52% of the 1121 Companies
in the Global Chemicals industry.

( Industry Median: 3.65 vs. AXLL: 0.80 )
AXLL' s 10-Year ROA (%) Range
Min: -13.52   Max: 13.53
Current: 0.8

-13.52
13.53
ROC (Joel Greenblatt) (%) 6.21
AXLL's ROC (Joel Greenblatt) (%) is ranked higher than
61% of the 1117 Companies
in the Global Chemicals industry.

( Industry Median: 9.96 vs. AXLL: 6.21 )
AXLL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -13.12   Max: 61.48
Current: 6.21

-13.12
61.48
Revenue Growth (3Y)(%) -11.80
AXLL's Revenue Growth (3Y)(%) is ranked lower than
56% of the 940 Companies
in the Global Chemicals industry.

( Industry Median: 3.50 vs. AXLL: -11.80 )
AXLL' s 10-Year Revenue Growth (3Y)(%) Range
Min: -66.9   Max: 25
Current: -11.8

-66.9
25
EBITDA Growth (3Y)(%) -5.90
AXLL's EBITDA Growth (3Y)(%) is ranked higher than
60% of the 881 Companies
in the Global Chemicals industry.

( Industry Median: -0.50 vs. AXLL: -5.90 )
AXLL' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -86.1   Max: 145
Current: -5.9

-86.1
145
EPS Growth (3Y)(%) -26.90
AXLL's EPS Growth (3Y)(%) is ranked higher than
51% of the 814 Companies
in the Global Chemicals industry.

( Industry Median: 0.80 vs. AXLL: -26.90 )
AXLL' s 10-Year EPS Growth (3Y)(%) Range
Min: -42.6   Max: 57.8
Current: -26.9

-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 2014

AXLL Guru Trades in Q1 2014

Jean-Marie Eveillard 8,000 sh (New)
Steven Cohen 79,893 sh (+26.61%)
Chuck Royce 147,500 sh (+5.78%)
Third Avenue Management 1,247,819 sh (+4.90%)
Pioneer Investments 260,156 sh (unchged)
Michael Price Sold Out
David Tepper 1,418,309 sh (-15.75%)
Jim Simons 244,036 sh (-61.88%)
» More
Q2 2014

AXLL Guru Trades in Q2 2014

RS Investment Management 663,795 sh (New)
Ray Dalio 6,102 sh (New)
Joel Greenblatt 319,544 sh (New)
Chuck Royce 163,500 sh (+10.85%)
Pioneer Investments 260,156 sh (unchged)
David Tepper 1,418,309 sh (unchged)
Steven Cohen 127,400 sh (unchged)
Jean-Marie Eveillard Sold Out
Jim Simons Sold Out
Third Avenue Management 1,037,796 sh (-16.83%)
» More
Q3 2014

AXLL Guru Trades in Q3 2014

Richard Snow 303,705 sh (New)
Joel Greenblatt 350,603 sh (+9.72%)
RS Investment Management 725,385 sh (+9.28%)
David Tepper 1,418,309 sh (unchged)
Pioneer Investments 260,156 sh (unchged)
Steven Cohen Sold Out
Ray Dalio Sold Out
Third Avenue Management 651,238 sh (-37.25%)
Chuck Royce 80,080 sh (-51.02%)
» More
Q4 2014

AXLL Guru Trades in Q4 2014

Paul Tudor Jones 10,342 sh (New)
Steven Cohen 205,300 sh (New)
Joel Greenblatt 397,550 sh (+13.39%)
Richard Snow 324,631 sh (+6.89%)
RS Investment Management 727,835 sh (+0.34%)
Third Avenue Management Sold Out
Pioneer Investments 212,032 sh (-18.50%)
David Tepper 1,135,088 sh (-19.97%)
Chuck Royce 50,080 sh (-37.46%)
» More
» Details

Insider Trades

Latest Guru Trades with AXLL

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)



No Guru Trades Found!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

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

Ratios

vs
industry
vs
history
P/E(ttm) 72.90
AXLL's P/E(ttm) is ranked higher than
55% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 28.60 vs. AXLL: 72.90 )
AXLL' s 10-Year P/E(ttm) Range
Min: 0.38   Max: 73.68
Current: 72.9

0.38
73.68
Forward P/E 12.06
AXLL's Forward P/E is ranked higher than
85% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 25.51 vs. AXLL: 12.06 )
N/A
PE(NRI) 71.70
AXLL's PE(NRI) is ranked higher than
58% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 28.20 vs. AXLL: 71.70 )
AXLL' s 10-Year PE(NRI) Range
Min: 0.38   Max: 73
Current: 71.7

0.38
73
P/B 1.30
AXLL's P/B is ranked higher than
75% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 2.13 vs. AXLL: 1.30 )
AXLL' s 10-Year P/B Range
Min: 0.43   Max: 8.11
Current: 1.3

0.43
8.11
P/S 0.70
AXLL's P/S is ranked higher than
75% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 1.18 vs. AXLL: 0.70 )
AXLL' s 10-Year P/S Range
Min: 0.01   Max: 0.95
Current: 0.7

0.01
0.95
PFCF 41.70
AXLL's PFCF is ranked higher than
72% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 80.71 vs. AXLL: 41.70 )
AXLL' s 10-Year PFCF Range
Min: 0.19   Max: 60.48
Current: 41.7

0.19
60.48
POCF 11.29
AXLL's POCF is ranked higher than
75% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 14.54 vs. AXLL: 11.29 )
AXLL' s 10-Year POCF Range
Min: 0.1   Max: 23.37
Current: 11.29

0.1
23.37
EV-to-EBIT 34.60
AXLL's EV-to-EBIT is ranked higher than
64% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 20.83 vs. AXLL: 34.60 )
AXLL' s 10-Year EV-to-EBIT Range
Min: -2286.4   Max: 99.7
Current: 34.6

-2286.4
99.7
Shiller P/E 5.40
AXLL's Shiller P/E is ranked higher than
99% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 44.67 vs. AXLL: 5.40 )
AXLL' s 10-Year Shiller P/E Range
Min: 4.57   Max: 68.78
Current: 5.4

4.57
68.78
Current Ratio 2.28
AXLL's Current Ratio is ranked higher than
79% of the 1111 Companies
in the Global Chemicals industry.

( Industry Median: 1.75 vs. AXLL: 2.28 )
AXLL' s 10-Year Current Ratio Range
Min: 0.84   Max: 2.51
Current: 2.28

0.84
2.51
Quick Ratio 1.55
AXLL's Quick Ratio is ranked higher than
78% of the 1111 Companies
in the Global Chemicals industry.

( Industry Median: 1.18 vs. AXLL: 1.55 )
AXLL' s 10-Year Quick Ratio Range
Min: 0.4   Max: 1.57
Current: 1.55

0.4
1.57
Days Inventory 36.42
AXLL's Days Inventory is ranked higher than
89% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 70.49 vs. AXLL: 36.42 )
AXLL' s 10-Year Days Inventory Range
Min: 29.02   Max: 50.43
Current: 36.42

29.02
50.43
Days Sales Outstanding 37.31
AXLL's Days Sales Outstanding is ranked higher than
87% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 68.11 vs. AXLL: 37.31 )
AXLL' s 10-Year Days Sales Outstanding Range
Min: 14.96   Max: 66
Current: 37.31

14.96
66

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.40
AXLL's Dividend Yield is ranked lower than
61% of the 894 Companies
in the Global Chemicals industry.

( Industry Median: 1.76 vs. AXLL: 1.40 )
AXLL' s 10-Year Dividend Yield Range
Min: 0.2   Max: 26.67
Current: 1.4

0.2
26.67
Dividend Payout 0.98
AXLL's Dividend Payout is ranked higher than
60% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 0.56 vs. AXLL: 0.98 )
AXLL' s 10-Year Dividend Payout Range
Min: 0.07   Max: 0.99
Current: 0.98

0.07
0.99
Yield on cost (5-Year) 1.40
AXLL's Yield on cost (5-Year) is ranked lower than
62% of the 900 Companies
in the Global Chemicals industry.

( Industry Median: 1.93 vs. AXLL: 1.40 )
AXLL' s 10-Year Yield on cost (5-Year) Range
Min: 0.2   Max: 26.67
Current: 1.4

0.2
26.67
Share Buyback Rate -27.40
AXLL's Share Buyback Rate is ranked lower than
58% of the 696 Companies
in the Global Chemicals industry.

( Industry Median: -0.90 vs. AXLL: -27.40 )
AXLL' s 10-Year Share Buyback Rate Range
Min: 6.9   Max: -191.5
Current: -27.4

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.10
AXLL's Price/DCF (Projected) is ranked higher than
84% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 3.94 vs. AXLL: 1.10 )
AXLL' s 10-Year Price/DCF (Projected) Range
Min: 0.06   Max: 1.29
Current: 1.1

0.06
1.29
Price/Median PS Value 2.00
AXLL's Price/Median PS Value is ranked lower than
53% of the 1174 Companies
in the Global Chemicals industry.

( Industry Median: 1.30 vs. AXLL: 2.00 )
AXLL' s 10-Year Price/Median PS Value Range
Min: 0.04   Max: 3.37
Current: 2

0.04
3.37
Earnings Yield (Greenblatt) 2.80
AXLL's Earnings Yield (Greenblatt) is ranked higher than
60% of the 1110 Companies
in the Global Chemicals industry.

( Industry Median: 5.00 vs. AXLL: 2.80 )
AXLL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1   Max: 23.9
Current: 2.8

1
23.9
Forward Rate of Return (Yacktman) 88.77
AXLL's Forward Rate of Return (Yacktman) is ranked higher than
100% of the 752 Companies
in the Global Chemicals industry.

( Industry Median: 4.73 vs. AXLL: 88.77 )
AXLL' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -39.3   Max: 543.4
Current: 88.77

-39.3
543.4

Business Description

Industry: Chemicals » Chemicals
Compare:BASFY, DD, SHECY, URALL, APD » details
Traded in other countries:HGQN.Germany,
Axiall Corp is a Delaware corporation incorporated in 1984. It is a manufacturer and marketer of chemicals and building products. It operates through three reportable segments: chlorovinyls; building products; and aromatics. Its Chlor-alkali and derivative products include Chlorine, Caustic soda, Vinyl chloride monomer, Vinyl resins, Other chlor-alkali and derivative products such as Chlorinated ethylene, Calcium hypochlorite, Hydrochloric acid, Phosgene derivatives, and also Compound products such as Vinyl compounds and Compound additives and plasticizers. Its Building products include Window and door profiles and mouldings products such as Window and door profiles, Trim, mouldings and deck, Outdoor building products such as Siding and exterior accessories, Pipe and pipe fittings. Its Aromatics products include Cumene such as Phenol and acetone. In its chlorovinyls segment, it produces chlorine and its co-product caustic soda by subjecting salt brine (sodium chloride) to an electric current creating a chemical reaction that results in chlorine gas, hydrogen gas and caustic soda (sodium hydroxide). It produces VCM by reacting purchased ethylene with chlorine. It produces vinyl resins by polymerization of VCM in a batch reactor process. It formulates its vinyl compounds to specific customer needs by blending its vinyl resins with various additives such as plasticizers, impact modifiers, stabilizers and pigments, most of which are purchased. It also has the capacity to produce EDC, an intermediate in the manufacture of VCM, for external sales. The significant raw materials it purchases from third parties include salt brine, ethylene, compound additives and natural gas. Its chlorovinyls segment faces competition from numerous manufacturers, including The Dow Chemical Company, Formosa Plastics Corporation, USA, Occidental Chemical Corporation, Olin Corporation, Shintech, Inc. and Westlake Chemical Corporation. In its Building Products Segment, the Company produces the majority of its building products through the extrusion of vinyl products. It also produces some pipe fittings through injection molding. These products are produced by heating vinyl compounds until they melt and then injecting them under pressure into a hollow mold to create three dimensional parts. The principal raw material it uses in the production of its building products is vinyl resin, which is blended with other compound additives to form vinyl compounds, which are then extruded or injection molded. The building products segment faces competition for each of its products from numerous manufacturers of vinyl products and traditional building materials. This segment's chief competitors include Ply Gem Holdings, Inc., VEKA Inc., CertainTeed Corporation, Vision Group, IPEX Inc., Associated Materials, Quanex, Deceuninck North America, CPG Azek and Bow Plastics. In its aromatics segment, it produces cumene through an alkylation reaction of benzene and refinery grade p
» More Articles for AXLL

Headlines

Articles On GuruFocus.com
Fifteen Equities with the Freshest Dividend Growth Sep 15 2013 
Third Avenue Management Comments on Axiall Sep 12 2013 
David Tepper's Second Quarter New Buys Aug 14 2013 
Delphi Management - Five Sell Outs Jul 15 2013 
'Magic Formula' Inventor Joel Greenblatt New Buys Rundown May 24 2013 


More From Other Websites
Axiall (AXLL) Looks Good: Stock Gains 5.5% in Session - Tale of the Tape Mar 30 2015
AXIALL CORP/DE/ Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits Mar 24 2015
AXIALL CORP/DE/ Financials Mar 06 2015
AXIALL CORP/DE/ Files SEC form 8-K, Entry into a Material Definitive Agreement, Creation of a Direct... Mar 05 2015
AXIALL CORP/DE/ Files SEC form 8-K, Other Events, Financial Statements and Exhibits Mar 04 2015
Axiall Reports 4th Quarter and 2014 Results Mar 03 2015
Axiall Board of Directors Declares Quarterly Dividend Mar 03 2015
Axiall Board of Directors Declares Quarterly Dividend Mar 03 2015
Axiall Announces Departure of Chief Strategy Officer Mar 02 2015
Axiall Completes Financing on $250 Million Term Loan B Mar 02 2015
Axiall Announces Departure of Chief Strategy Officer Mar 02 2015
10-K for Axiall Corp. Mar 01 2015
AXIALL CORP/DE/ Files SEC form 10-K, Annual Report Feb 27 2015
Axiall Corporation and ALTIVIA Sign Definitive Agreement on Asset Sale Feb 27 2015
Axiall Completes Financing on $250 Million Term Loan B Feb 27 2015
Axiall Announces Launch of $250 Million Term Loan B Feb 26 2015
ALTIVIA Acquires Axiall's Specialty Phosgene Derivatives Business Feb 26 2015
Axiall Corporation and ALTIVIA Sign Definitive Agreement on Asset Sale Feb 26 2015
Axiall delays decision on new plant in Westlake Feb 23 2015
Axiall delays decision on new plant in Westlake Feb 23 2015

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK