Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto parts maker American Axle & Manufacturing (NYSE:AXL) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at American Axle's business and see what CAPS investors are saying about the stock right now.

American Axle facts

Headquarters (Founded)

Detroit (1994)

Market Cap

$576 million


Auto parts and equipment

Trailing-12-Month Revenue

$1.56 billion


Co-Founder/CEO Richard Dauch

COO David Dauch

Trailing-12-Month Return on Capital



$182.2 million / $1.18 billion

1-Year Return



ArvinMeritor (NYSE:ARM)

Dana Holding

CAPS Members Bearish on AXL Also Bearish on

Dollar Thrifty Automotive Group (NYSE:DTG)

The Talbots (NYSE:TLB)

CAPS Members Bullish on AXL Also Bullish on

General Electric (NYSE:GE)


Citigroup (NYSE:C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 56% of the 263 members who have rated American Axle believe the stock will underperform the S&P 500 going forward. These bears include FreeMortal and All-Star mrindependent, who is ranked in the top 2% of our community.

Late last week, FreeMortal noted that the stock price was speeding way out of control: "Lots of debt, little cash. Margins are bad for the industry. Sales shrinking. ... Recent insider selling (just after stock went up, of course). ... Why the heck is this stock still up?"

In a pitch from one day later, mrindependent also tried valiantly to steer Fools away :

American Axle's stock price recently soared based on its recent announcement that it earned a PROFIT for the most recent quarter. Unfortunately, the quarter would have showed a loss but for the impact of one time items related to union concessions. Market cap is $399 million despite the fact that American Axle is a money losing company that needs a plan to pay its debt down by $700 million or so.

What do you think about American Axle, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.