AXON ENTERPRISE INC (AXON)
US05464C1018 - Common Stock
Taking everything into account, AXON scores 6 out of 10 in our fundamental rating. AXON was compared to 65 industry peers in the Aerospace & Defense industry. AXON has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AXON shows excellent growth, but is valued quite expensive already. This makes AXON very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
AXON had positive earnings in the past year.
AXON had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AXON reported negative net income in multiple years.
AXON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXON has a Return On Assets of 7.77%. This is amongst the best in the industry. AXON outperforms 83.08% of its industry peers.
AXON has a Return On Equity of 15.07%. This is amongst the best in the industry. AXON outperforms 83.08% of its industry peers.
AXON has a Return On Invested Capital of 3.72%. This is comparable to the rest of the industry: AXON outperforms 47.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 15.07% | ||
| ROIC | 3.72% |
ROA(3y)2.22%
ROA(5y)1.33%
ROE(3y)5.56%
ROE(5y)3.33%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AXON (16.05%) is better than 93.85% of its industry peers.
In the last couple of years the Profit Margin of AXON has grown nicely.
The Operating Margin of AXON (8.17%) is better than 61.54% of its industry peers.
In the last couple of years the Operating Margin of AXON has grown nicely.
The Gross Margin of AXON (59.81%) is better than 93.85% 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 | 8.17% | ||
| PM (TTM) | 16.05% | ||
| GM | 59.81% |
OM growth 3YN/A
OM growth 5Y10.86%
PM growth 3YN/A
PM growth 5Y9.9%
GM growth 3Y-0.01%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXON is destroying value.
AXON has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AXON has more shares outstanding
Compared to 1 year ago, AXON has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.16 indicates that AXON is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.16, AXON belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
The Debt to FCF ratio of AXON is 3.33, which is a good value as it means it would take AXON, 3.33 years of fcf income to pay off all of its debts.
AXON has a Debt to FCF ratio of 3.33. This is amongst the best in the industry. AXON outperforms 84.62% of its industry peers.
AXON has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, AXON is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 10.16 |
ROIC/WACC0.46
WACC8.17%
2.3 Liquidity
AXON has a Current Ratio of 2.88. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
AXON has a Current ratio of 2.88. This is in the better half of the industry: AXON outperforms 67.69% of its industry peers.
A Quick Ratio of 2.52 indicates that AXON has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.52, AXON belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
AXON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.47%, which is quite impressive.
Measured over the past years, AXON shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.65% on average per year.
The Revenue has grown by 32.59% in the past year. This is a very strong growth!
AXON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.06% yearly.
EPS 1Y (TTM)36.47%
EPS 3Y32.14%
EPS 5Y45.65%
EPS Q2Q%8.11%
Revenue 1Y (TTM)32.59%
Revenue growth 3Y31.92%
Revenue growth 5Y30.06%
Sales Q2Q%34.57%
3.2 Future
AXON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.90% yearly.
Based on estimates for the next years, AXON will show a very strong growth in Revenue. The Revenue will grow by 24.02% on average per year.
EPS Next Y18.45%
EPS Next 2Y20.46%
EPS Next 3Y20.9%
EPS Next 5YN/A
Revenue Next Year30.89%
Revenue Next 2Y26.15%
Revenue Next 3Y24.02%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 78.98, which means the current valuation is very expensive for AXON.
Compared to the rest of the industry, the Price/Earnings ratio of AXON is on the same level as its industry peers.
AXON's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.62.
A Price/Forward Earnings ratio of 59.18 indicates a quite expensive valuation of AXON.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXON is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AXON to the average of the S&P500 Index (21.22), we can say AXON is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.98 | ||
| Fwd PE | 59.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXON is valued a bit more expensive than 63.08% 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 | 131.31 | ||
| EV/EBITDA | 135.46 |
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.
AXON's earnings are expected to grow with 20.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.28
PEG (5Y)1.73
EPS Next 2Y20.46%
EPS Next 3Y20.9%
5. Dividend
5.1 Amount
AXON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AXON ENTERPRISE INC
NASDAQ:AXON (9/6/2024, 8:00:55 PM)
After market: 354.62 0 (0%)354.62
-0.24 (-0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.98 | ||
| Fwd PE | 59.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.28
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 15.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.17% | ||
| PM (TTM) | 16.05% | ||
| GM | 59.81% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.88 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)36.47%
EPS 3Y32.14%
EPS 5Y
EPS Q2Q%
EPS Next Y18.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)32.59%
Revenue growth 3Y31.92%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y