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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 0.04
AXLL's Cash to Debt is ranked lower than
65% of the 1037 Companies
in the Global Chemicals industry.

( Industry Median: 0.38 vs. AXLL: 0.04 )
AXLL' s 10-Year Cash to Debt Range
Min: 0   Max: 0.36
Current: 0.04

0
0.36
Equity to Asset 0.45
AXLL's Equity to Asset is ranked higher than
56% of the 1030 Companies
in the Global Chemicals industry.

( Industry Median: 0.52 vs. AXLL: 0.45 )
AXLL' s 10-Year Equity to Asset Range
Min: -0.09   Max: 0.47
Current: 0.45

-0.09
0.47
Interest Coverage 4.78
AXLL's Interest Coverage is ranked lower than
53% of the 693 Companies
in the Global Chemicals industry.

( Industry Median: 21.51 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: 4
Z-Score: 1.57
M-Score: -2.64
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 (%) 5.11
AXLL's Operating margin (%) is ranked higher than
68% of the 1040 Companies
in the Global Chemicals industry.

( Industry Median: 5.84 vs. AXLL: 5.11 )
AXLL' s 10-Year Operating margin (%) Range
Min: -4.81   Max: 30.32
Current: 5.11

-4.81
30.32
Net-margin (%) 2.45
AXLL's Net-margin (%) is ranked higher than
60% of the 1040 Companies
in the Global Chemicals industry.

( Industry Median: 3.76 vs. AXLL: 2.45 )
AXLL' s 10-Year Net-margin (%) Range
Min: -8.83   Max: 17.24
Current: 2.45

-8.83
17.24
ROE (%) 4.41
AXLL's ROE (%) is ranked higher than
61% of the 1028 Companies
in the Global Chemicals industry.

( Industry Median: 7.00 vs. AXLL: 4.41 )
AXLL' s 10-Year ROE (%) Range
Min: -906.03   Max: 456.55
Current: 4.41

-906.03
456.55
ROA (%) 1.92
AXLL's ROA (%) is ranked higher than
57% of the 1041 Companies
in the Global Chemicals industry.

( Industry Median: 3.68 vs. AXLL: 1.92 )
AXLL' s 10-Year ROA (%) Range
Min: -13.52   Max: 36.72
Current: 1.92

-13.52
36.72
ROC (Joel Greenblatt) (%) 10.53
AXLL's ROC (Joel Greenblatt) (%) is ranked higher than
72% of the 1040 Companies
in the Global Chemicals industry.

( Industry Median: 10.31 vs. AXLL: 10.53 )
AXLL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -13.12   Max: 171.05
Current: 10.53

-13.12
171.05
Revenue Growth (%) -6.20
AXLL's Revenue Growth (%) is ranked lower than
55% of the 889 Companies
in the Global Chemicals industry.

( Industry Median: 4.60 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
80% of the 811 Companies
in the Global Chemicals industry.

( Industry Median: 1.60 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
90% of the 746 Companies
in the Global Chemicals industry.

( Industry Median: 1.60 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

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
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 (+4.9%)
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

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

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 New Buy0.19%$42.71 - $48.98 $ 38.35-17%319544
Third Avenue Management 2014-06-30 Reduce -16.83%0.19%$42.71 - $48.98 $ 38.35-17%1037796
Ray Dalio 2014-06-30 New Buy$42.71 - $48.98 $ 38.35-17%6102
Jean-Marie Eveillard 2014-06-30 Sold Out $42.71 - $48.98 $ 38.35-17%0
David Tepper 2014-03-31 Reduce -15.75%0.16%$38.37 - $47.44 $ 38.35-10%1418309
Michael Price 2014-03-31 Sold Out 0.12%$38.37 - $47.44 $ 38.35-10%0
Jean-Marie Eveillard 2014-03-31 New Buy$38.37 - $47.44 $ 38.35-10%8000
Michael Price 2013-12-31 New Buy0.12%$36.65 - $49.95 $ 38.35-11%20000
Ray Dalio 2013-12-31 Sold Out $36.65 - $49.95 $ 38.35-11%0
Third Avenue Management 2013-09-30 Add 75.79%0.38%$37.54 - $45.64 $ 38.35-8%1193189
Joel Greenblatt 2013-09-30 Sold Out 0.08%$37.54 - $45.64 $ 38.35-8%0
Ray Dalio 2013-09-30 New Buy$37.54 - $45.64 $ 38.35-8%10702
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe 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

Ratios

vs
industry
vs
history
P/E(ttm) 24.50
AXLL's P/E(ttm) is ranked higher than
68% of the 1070 Companies
in the Global Chemicals industry.

( Industry Median: 22.80 vs. AXLL: 24.50 )
AXLL' s 10-Year P/E(ttm) Range
Min: 0.35   Max: 76.28
Current: 24.5

0.35
76.28
P/B 1.03
AXLL's P/B is ranked higher than
79% of the 1070 Companies
in the Global Chemicals industry.

( Industry Median: 1.62 vs. AXLL: 1.03 )
AXLL' s 10-Year P/B Range
Min: 0.43   Max: 8.11
Current: 1.03

0.43
8.11
P/S 0.59
AXLL's P/S is ranked higher than
79% of the 1070 Companies
in the Global Chemicals industry.

( Industry Median: 0.97 vs. AXLL: 0.59 )
AXLL' s 10-Year P/S Range
Min: 0.01   Max: 0.95
Current: 0.59

0.01
0.95
PFCF 18.26
AXLL's PFCF is ranked higher than
87% of the 1070 Companies
in the Global Chemicals industry.

( Industry Median: 9999.00 vs. AXLL: 18.26 )
AXLL' s 10-Year PFCF Range
Min: 0.19   Max: 60.48
Current: 18.26

0.19
60.48
EV-to-EBIT 18.07
AXLL's EV-to-EBIT is ranked higher than
71% of the 1070 Companies
in the Global Chemicals industry.

( Industry Median: 17.79 vs. AXLL: 18.07 )
AXLL' s 10-Year EV-to-EBIT Range
Min: 4.2   Max: 99.7
Current: 18.07

4.2
99.7
Current Ratio 2.10
AXLL's Current Ratio is ranked higher than
76% of the 1038 Companies
in the Global Chemicals industry.

( Industry Median: 1.73 vs. AXLL: 2.10 )
AXLL' s 10-Year Current Ratio Range
Min: 0.34   Max: 2.51
Current: 2.1

0.34
2.51
Quick Ratio 1.33
AXLL's Quick Ratio is ranked higher than
71% of the 1038 Companies
in the Global Chemicals industry.

( Industry Median: 1.19 vs. AXLL: 1.33 )
AXLL' s 10-Year Quick Ratio Range
Min: 0.19   Max: 1.57
Current: 1.33

0.19
1.57

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.67
AXLL's Dividend Yield is ranked lower than
52% of the 833 Companies
in the Global Chemicals industry.

( Industry Median: 1.77 vs. AXLL: 1.67 )
AXLL' s 10-Year Dividend Yield Range
Min: 0.2   Max: 14.61
Current: 1.67

0.2
14.61
Dividend Payout 0.40
AXLL's Dividend Payout is ranked higher than
67% of the 1070 Companies
in the Global Chemicals industry.

( Industry Median: 0.51 vs. AXLL: 0.40 )
AXLL' s 10-Year Dividend Payout Range
Min: 0.06   Max: 4
Current: 0.4

0.06
4
Yield on cost (5-Year) 1.60
AXLL's Yield on cost (5-Year) is ranked lower than
60% of the 844 Companies
in the Global Chemicals industry.

( Industry Median: 2.15 vs. AXLL: 1.60 )
AXLL' s 10-Year Yield on cost (5-Year) Range
Min: 0.2   Max: 14.61
Current: 1.6

0.2
14.61
Share Buyback Rate -26.10
AXLL's Share Buyback Rate is ranked lower than
56% of the 623 Companies
in the Global Chemicals industry.

( Industry Median: -0.80 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) 0.93
AXLL's Price/DCF (Projected) is ranked higher than
86% of the 1070 Companies
in the Global Chemicals industry.

( Industry Median: 3.00 vs. AXLL: 0.93 )
AXLL' s 10-Year Price/DCF (Projected) Range
Min: 0.04   Max: 2.56
Current: 0.93

0.04
2.56
Price/Median PS Value 1.65
AXLL's Price/Median PS Value is ranked lower than
54% of the 1070 Companies
in the Global Chemicals industry.

( Industry Median: 1.07 vs. AXLL: 1.65 )
AXLL' s 10-Year Price/Median PS Value Range
Min: 0.03   Max: 4.86
Current: 1.65

0.03
4.86
Earnings Yield (Greenblatt) 5.50
AXLL's Earnings Yield (Greenblatt) is ranked higher than
65% of the 926 Companies
in the Global Chemicals industry.

( Industry Median: 6.70 vs. AXLL: 5.50 )
AXLL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1   Max: 23.9
Current: 5.5

1
23.9
Forward Rate of Return (Yacktman) 3.22
AXLL's Forward Rate of Return (Yacktman) is ranked higher than
65% of the 818 Companies
in the Global Chemicals industry.

( Industry Median: 7.13 vs. AXLL: 3.22 )
AXLL' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -16   Max: 254.2
Current: 3.22

-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.
» 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 

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