AXON ENTERPRISE INC (AXON)
US05464C1018 - Common Stock
We assign a fundamental rating of 6 out of 10 to AXON. AXON was compared to 64 industry peers in the Aerospace & Defense industry. AXON is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AXON shows excellent growth, but is valued quite expensive already. This makes AXON very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year AXON was profitable.
In the past year AXON had a positive cash flow from operations.
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
With a decent Return On Assets value of 5.07%, AXON is doing good in the industry, outperforming 68.75% of the companies in the same industry.
With a decent Return On Equity value of 10.80%, AXON is doing good in the industry, outperforming 73.44% of the companies in the same industry.
AXON has a Return On Invested Capital of 4.39%. This is comparable to the rest of the industry: AXON outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 10.8% | ||
| ROIC | 4.39% |
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
With an excellent Profit Margin value of 11.14%, AXON belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
AXON's Profit Margin has improved in the last couple of years.
The Operating Margin of AXON (9.90%) is better than 71.88% of its industry peers.
In the last couple of years the Operating Margin of AXON has grown nicely.
With an excellent Gross Margin value of 61.11%, AXON belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
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 | 9.9% | ||
| PM (TTM) | 11.14% | ||
| GM | 61.11% |
OM growth 3YN/A
OM growth 5Y10.9%
PM growth 3YN/A
PM growth 5Y9.9%
GM growth 3Y-0.01%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXON 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.
AXON has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.93 indicates that AXON is not in any danger for bankruptcy at the moment.
AXON has a Altman-Z score of 8.93. This is amongst the best in the industry. AXON outperforms 95.31% of its industry peers.
AXON has a debt to FCF ratio of 5.25. This is a neutral value as AXON would need 5.25 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.25, AXON is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that AXON is not too dependend on debt financing.
AXON has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 8.93 |
ROIC/WACC0.48
WACC9.09%
2.3 Liquidity
A Current Ratio of 3.00 indicates that AXON has no problem at all paying its short term obligations.
AXON has a Current ratio of 3.00. This is in the better half of the industry: AXON outperforms 76.56% of its industry peers.
A Quick Ratio of 2.66 indicates that AXON has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.66, AXON belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 88.58% over the past year.
The Earnings Per Share has been growing by 45.65% on average over the past years. This is a very strong growth
The Revenue has grown by 31.38% in the past year. This is a very strong growth!
Measured over the past years, AXON shows a very strong growth in Revenue. The Revenue has been growing by 30.06% on average per year.
EPS 1Y (TTM)88.58%
EPS 3Y32.14%
EPS 5Y45.65%
EPS growth Q2Q60%
Revenue 1Y (TTM)31.38%
Revenue growth 3Y31.92%
Revenue growth 5Y30.06%
Revenue growth Q2Q28.58%
3.2 Future
The Earnings Per Share is expected to grow by 18.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 21.38% on average over the next years. This is a very strong growth
EPS Next Y8.83%
EPS Next 2Y18.7%
EPS Next 3Y18.67%
EPS Next 5YN/A
Revenue Next Year24.38%
Revenue Next 2Y22.8%
Revenue Next 3Y21.38%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 74.63, AXON can be considered very expensive at the moment.
AXON's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.92. AXON is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 68.58, the valuation of AXON can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AXON.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, AXON is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.63 | ||
| Fwd PE | 68.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXON is valued a bit more expensive than 60.94% 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 | 180.31 | ||
| EV/EBITDA | 116 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AXON has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AXON's earnings are expected to grow with 18.67% in the coming years.
PEG (NY)8.45
PEG (5Y)1.63
EPS Next 2Y18.7%
EPS Next 3Y18.67%
5. Dividend
5.1 Amount
AXON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AXON ENTERPRISE INC
NASDAQ:AXON (4/26/2024, 7:00:00 PM)
After market: 308.23 0 (0%)308.23
+1.99 (+0.65%)
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 Cap23.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.63 | ||
| Fwd PE | 68.58 | ||
| 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)8.45
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.07% | ||
| ROE | 10.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.9% | ||
| PM (TTM) | 11.14% | ||
| GM | 61.11% | ||
| 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3 | ||
| Quick Ratio | 2.66 | ||
| 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)
Growth
EPS 1Y (TTM)88.58%
EPS 3Y32.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.38%
Revenue growth 3Y31.92%
Revenue growth 5Y
Revenue growth 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