AXON ENTERPRISE INC (AXON) Stock Fundamental Analysis
NASDAQ:AXON - Nasdaq - US05464C1018 - Common Stock - Currency: USD
AXON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 66 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of AXON get a neutral evaluation. Nothing too spectacular is happening here. AXON is valued quite expensive, but it does show an excellent growth. With these ratings, AXON could be worth investigating further 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.
In the past 5 years AXON always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AXON (7.64%) is better than 83.33% of its industry peers.
AXON has a better Return On Equity (18.19%) than 87.88% of its industry peers.
AXON's Return On Invested Capital of 0.91% is on the low side compared to the rest of the industry. AXON is outperformed by 62.12% of its industry peers.
AXON had an Average Return On Invested Capital over the past 3 years of 3.12%. This is significantly below the industry average of 8.44%.
| 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 96.97% of the companies in the same industry.
In the last couple of years the Profit Margin of AXON has grown nicely.
Looking at the Operating Margin, with a value of 2.03%, AXON is doing worse than 62.12% of the companies in the same industry.
AXON has a Gross Margin of 59.83%. This is amongst the best in the industry. AXON outperforms 90.91% of its industry peers.
AXON's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for AXON has been increased compared to 1 year ago.
The number of shares outstanding for AXON has been increased compared to 5 years ago.
AXON has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.82 indicates that AXON is not in any danger for bankruptcy at the moment.
AXON has a Altman-Z score of 10.82. This is amongst the best in the industry. AXON outperforms 86.36% of its industry peers.
AXON has a debt to FCF ratio of 5.53. This is a neutral value as AXON would need 5.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.53, AXON is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
AXON has a Debt/Equity ratio of 0.68. This is a neutral value indicating AXON is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, AXON is doing worse than 62.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.53 | ||
| Altman-Z | 10.82 |
ROIC/WACC0.09
WACC10.6%
2.3 Liquidity
A Current Ratio of 2.83 indicates that AXON has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.83, AXON is doing good in the industry, outperforming 62.12% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 2.62, AXON belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
| 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%.
The Revenue has been growing by 31.44% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, AXON will show a quite strong growth in Revenue. The Revenue will grow by 19.50% on average per year.
EPS Next Y7.3%
EPS Next 2Y15.28%
EPS Next 3Y15.98%
EPS Next 5YN/A
Revenue Next Year28.17%
Revenue Next 2Y25.73%
Revenue Next 3Y23.13%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 122.19, AXON can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as AXON.
The average S&P500 Price/Earnings ratio is at 27.52. AXON is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 96.02, which means the current valuation is very expensive for AXON.
AXON's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AXON is more expensive than 68.18% of the companies in the same industry.
AXON's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122.19 | ||
| Fwd PE | 96.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXON is valued a bit more expensive than 66.67% of the companies in the same industry.
AXON's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 161.08 | ||
| EV/EBITDA | 498.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AXON does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of AXON may justify a higher PE ratio.
AXON's earnings are expected to grow with 15.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.74
PEG (5Y)2.95
EPS Next 2Y15.28%
EPS Next 3Y15.98%
5. Dividend
5.1 Amount
No dividends for AXON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
750.26
+20.64 (+2.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners81.97%
Inst Owner ChangeN/A
Ins Owners0.58%
Ins Owner Change6.11%
Market Cap58.41B
Analysts81.74
Price Target735.06 (-2.03%)
Short Float %2.01%
Short Ratio2.56
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)1.57%
PT rev (3m)8.36%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)1.18%
EPS NY rev (1m)1.16%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122.19 | ||
| Fwd PE | 96.02 | ||
| P/S | 21.74 | ||
| P/FCF | 161.08 | ||
| P/OCF | 129.78 | ||
| P/B | 22.85 | ||
| P/tB | 35.81 | ||
| EV/EBITDA | 498.07 |
EPS(TTM)6.14
EY0.82%
EPS(NY)7.81
Fwd EY1.04%
FCF(TTM)4.66
FCFY0.62%
OCF(TTM)5.78
OCFY0.77%
SpS34.5
BVpS32.83
TBVpS20.95
PEG (NY)16.74
PEG (5Y)2.95
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 | 10.82 |
F-Score3
WACC10.6%
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 Y7.3%
EPS Next 2Y15.28%
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 Year28.17%
Revenue Next 2Y25.73%
Revenue Next 3Y23.13%
Revenue Next 5Y19.5%
EBIT growth 1Y-64.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year92.63%
EBIT Next 3Y47.68%
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%