AXON ENTERPRISE INC (AXON) Stock Fundamental Analysis
NASDAQ:AXON - Nasdaq - US05464C1018 - Common Stock - Currency: USD
Taking everything into account, AXON scores 5 out of 10 in our fundamental rating. AXON was compared to 64 industry peers in the Aerospace & Defense industry. AXON has an average financial health and profitability rating. AXON is valued quite expensively, but it does show have an excellent growth rating. These ratings could make AXON a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year AXON was profitable.
AXON had a positive operating cash flow in the past year.
In multiple years AXON reported negative net income over the last 5 years.
Each year in the past 5 years AXON had a positive operating cash flow.
1.2 Ratios
AXON's Return On Assets of 7.64% is amongst the best of the industry. AXON outperforms 81.25% of its industry peers.
AXON has a Return On Equity of 18.19%. This is amongst the best in the industry. AXON outperforms 89.06% of its industry peers.
AXON has a worse Return On Invested Capital (0.91%) than 65.63% of its industry peers.
AXON had an Average Return On Invested Capital over the past 3 years of 3.12%. This is below the industry average of 7.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.64% | ||
| ROE | 18.19% | ||
| ROIC | 0.91% |
ROA(3y)6.22%
ROA(5y)2.99%
ROE(3y)12.87%
ROE(5y)6.54%
ROIC(3y)3.12%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 17.31%, AXON belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
AXON's Profit Margin has improved in the last couple of years.
The Operating Margin of AXON (2.03%) is worse than 64.06% of its industry peers.
AXON has a better Gross Margin (59.83%) than 90.63% of its industry peers.
In the last couple of years the Gross Margin of AXON has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.03% | ||
| PM (TTM) | 17.31% | ||
| GM | 59.83% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y155.54%
GM growth 3Y-1.64%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
AXON has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AXON has more shares outstanding than it did 1 year ago.
AXON has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AXON has an improved debt to assets ratio.
2.2 Solvency
AXON has an Altman-Z score of 10.99. This indicates that AXON is financially healthy and has little risk of bankruptcy at the moment.
AXON's Altman-Z score of 10.99 is amongst the best of the industry. AXON outperforms 90.63% of its industry peers.
The Debt to FCF ratio of AXON is 5.53, which is a neutral value as it means it would take AXON, 5.53 years of fcf income to pay off all of its debts.
AXON has a better Debt to FCF ratio (5.53) than 68.75% of its industry peers.
AXON has a Debt/Equity ratio of 0.68. This is a neutral value indicating AXON is somewhat dependend on debt financing.
AXON's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. AXON is outperformed by 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 10.99 |
ROIC/WACC0.09
WACC10.12%
2.3 Liquidity
AXON has a Current Ratio of 2.83. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
AXON's Current ratio of 2.83 is fine compared to the rest of the industry. AXON outperforms 64.06% of its industry peers.
AXON has a Quick Ratio of 2.62. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
AXON has a better Quick ratio (2.62) than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
AXON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.55%, which is quite impressive.
AXON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.41% yearly.
Looking at the last year, AXON shows a very strong growth in Revenue. The Revenue has grown by 59.79%.
AXON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.44% yearly.
EPS 1Y (TTM)39.55%
EPS 3Y36.34%
EPS 5Y41.41%
EPS Q2Q%22.61%
Revenue 1Y (TTM)59.79%
Revenue growth 3Y34.11%
Revenue growth 5Y31.44%
Sales Q2Q%31.01%
3.2 Future
Based on estimates for the next years, AXON will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.98% on average per year.
The Revenue is expected to grow by 19.50% on average over the next years. This is quite good.
EPS Next Y6.07%
EPS Next 2Y14.18%
EPS Next 3Y15.98%
EPS Next 5YN/A
Revenue Next Year28.07%
Revenue Next 2Y25.26%
Revenue Next 3Y23.48%
Revenue Next 5Y19.5%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 120.97, the valuation of AXON can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AXON is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.60. AXON is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 96.89, AXON can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXON indicates a slightly more expensive valuation: AXON is more expensive than 64.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, AXON is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.97 | ||
| Fwd PE | 96.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXON is valued a bit more expensive than the industry average as 68.75% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXON is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.47 | ||
| EV/EBITDA | 506.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AXON may justify a higher PE ratio.
A more expensive valuation may be justified as AXON's earnings are expected to grow with 15.98% in the coming years.
PEG (NY)19.94
PEG (5Y)2.92
EPS Next 2Y14.18%
EPS Next 3Y15.98%
5. Dividend
5.1 Amount
No dividends for AXON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
742.75
+0.43 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners82.93%
Inst Owner ChangeN/A
Ins Owners0.58%
Ins Owner Change5.91%
Market Cap57.82B
Analysts81.74
Price Target678.42 (-8.66%)
Short Float %1.97%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.89%
Min EPS beat(2)8.51%
Max EPS beat(2)45.27%
EPS beat(4)4
Avg EPS beat(4)21.86%
Min EPS beat(4)8.51%
Max EPS beat(4)45.27%
EPS beat(8)8
Avg EPS beat(8)30.38%
EPS beat(12)12
Avg EPS beat(12)30.91%
EPS beat(16)16
Avg EPS beat(16)61.69%
Revenue beat(2)1
Avg Revenue beat(2)0.49%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)1.38%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)3.29%
Revenue beat(8)7
Avg Revenue beat(8)2.16%
Revenue beat(12)11
Avg Revenue beat(12)3.99%
Revenue beat(16)15
Avg Revenue beat(16)6.08%
PT rev (1m)0.01%
PT rev (3m)5.79%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-3.42%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)3.43%
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)3.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.97 | ||
| Fwd PE | 96.89 | ||
| P/S | 21.53 | ||
| P/FCF | 159.47 | ||
| P/OCF | 128.48 | ||
| P/B | 22.62 | ||
| P/tB | 35.45 | ||
| EV/EBITDA | 506.99 |
EPS(TTM)6.14
EY0.83%
EPS(NY)7.67
Fwd EY1.03%
FCF(TTM)4.66
FCFY0.63%
OCF(TTM)5.78
OCFY0.78%
SpS34.5
BVpS32.83
TBVpS20.95
PEG (NY)19.94
PEG (5Y)2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.64% | ||
| ROE | 18.19% | ||
| ROCE | 1.15% | ||
| ROIC | 0.91% | ||
| ROICexc | 1.81% | ||
| ROICexgc | 2.96% | ||
| OM | 2.03% | ||
| PM (TTM) | 17.31% | ||
| GM | 59.83% | ||
| FCFM | 13.5% |
ROA(3y)6.22%
ROA(5y)2.99%
ROE(3y)12.87%
ROE(5y)6.54%
ROIC(3y)3.12%
ROIC(5y)N/A
ROICexc(3y)5.69%
ROICexc(5y)N/A
ROICexgc(3y)6.38%
ROICexgc(5y)N/A
ROCE(3y)3.94%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y155.54%
GM growth 3Y-1.64%
GM growth 5Y0.59%
F-Score3
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.53 | ||
| Debt/EBITDA | 15.6 | ||
| Cap/Depr | 155.29% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 406.32% | ||
| Profit Quality | 77.97% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 10.99 |
F-Score3
WACC10.12%
ROIC/WACC0.09
Cap/Depr(3y)192.5%
Cap/Depr(5y)286.11%
Cap/Sales(3y)4.12%
Cap/Sales(5y)5.78%
Profit Quality(3y)94.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)39.55%
EPS 3Y36.34%
EPS 5Y41.41%
EPS Q2Q%22.61%
EPS Next Y6.07%
EPS Next 2Y14.18%
EPS Next 3Y15.98%
EPS Next 5YN/A
Revenue 1Y (TTM)59.79%
Revenue growth 3Y34.11%
Revenue growth 5Y31.44%
Sales Q2Q%31.01%
Revenue Next Year28.07%
Revenue Next 2Y25.26%
Revenue Next 3Y23.48%
Revenue Next 5Y19.5%
EBIT growth 1Y-64.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year88.73%
EBIT Next 3Y42.83%
EBIT Next 5YN/A
FCF growth 1Y314.57%
FCF growth 3Y64.36%
FCF growth 5Y46.2%
OCF growth 1Y233.18%
OCF growth 3Y48.58%
OCF growth 5Y44.12%