Anixter International Inc. (AXE) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about AXE stock:

  • Is AXE a buy or a sell?
  • Should I sell or hold AXE stock today?
  • Is AXE a good buy / a good investment?
  • What are AXE analyst opinions, recommendations, ratings?

Here are AXE stock buy reasons/signals:

1. Acquisition-related sales synergies, normalized industrial demand, and other key growth initiatives should result in improved growth and profitability prospects

2. Acquisition-related sales synergies, normalized industrial demand, and other key growth initiatives should result in improved growth and profitability prospects

3. Despite serving cyclical end markets, Anixter’s business model generates strong free cash flow throughout the cycle

4. AXE forward P/E ratio is 11.97, and it’s low compared to its industry peers’ P/E ratios.

5. AXE Price/Sales ratio is 0.31, and it’s low compared to its industry peers’ P/S ratios.

6. AXE PEG ratio (P/E adjusted for growth) is 1.34, and it’s low compared to its industry peers’ PEG ratios.

7. AXE average analyst rating is Buy.

8. AXE average analyst price target ($90.00) is above its current price ($81.25).

Here are AXE stock sell reasons/signals:

1. Weak industrial end markets may persist and continue to hamper the company’s growth and profitability potential

2. Amazon Business could disrupt the industrial distribution industry, taking market share and pressuring margins

3. Other public industrial distributors generate higher margins and offer more consistent dividend payments and share buyback programs

4. AXE stock price ($81.25) is close to the 52-week high ($85.75). Perhaps now is a good time to sell?

5. AXE quarterly revenue growth was 2.30%, lower than the industry and sector average revenue growth (4.62% and 4.56%, respectively).

6. AXE profitability is declining. The YoY profit margin change was -0.48pp.

What are your thoughts on AXE?

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