AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
NYSE:AXS - New York Stock Exchange, Inc. - BMG0692U1099 - Common Stock - Currency: USD
AXS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. AXS has only an average score on both its financial health and profitability. AXS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AXS was profitable.
In the past year AXS had a positive cash flow from operations.
Of the past 5 years AXS 4 years were profitable.
AXS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXS has a Return On Assets of 3.23%. This is in the better half of the industry: AXS outperforms 71.33% of its industry peers.
With a decent Return On Equity value of 17.27%, AXS is doing good in the industry, outperforming 74.83% of the companies in the same industry.
AXS's Return On Invested Capital of 2.59% is in line compared to the rest of the industry. AXS outperforms 56.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXS is below the industry average of 4.47%.
The 3 year average ROIC (1.54%) for AXS is below the current ROIC(2.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 17.27% | ||
| ROIC | 2.59% |
ROA(3y)1.69%
ROA(5y)1.33%
ROE(3y)9.33%
ROE(5y)7.21%
ROIC(3y)1.54%
ROIC(5y)1.36%
1.3 Margins
The Profit Margin of AXS (17.62%) is better than 83.92% of its industry peers.
AXS's Profit Margin has improved in the last couple of years.
AXS's Operating Margin of 17.63% is fine compared to the rest of the industry. AXS outperforms 71.33% of its industry peers.
AXS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.63% | ||
| PM (TTM) | 17.62% | ||
| GM | N/A |
OM growth 3Y9.71%
OM growth 5Y15.36%
PM growth 3Y16.87%
PM growth 5Y26.54%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AXS 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 AXS has been reduced compared to 1 year ago.
The number of shares outstanding for AXS has been reduced compared to 5 years ago.
Compared to 1 year ago, AXS has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of AXS is 0.72, which is an excellent value as it means it would take AXS, only 0.72 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.72, AXS is doing good in the industry, outperforming 71.33% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that AXS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, AXS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | N/A |
ROIC/WACC0.31
WACC8.27%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.62% over the past year.
Measured over the past years, AXS shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.71% on average per year.
AXS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.54%.
Measured over the past years, AXS shows a small growth in Revenue. The Revenue has been growing by 2.79% on average per year.
EPS 1Y (TTM)13.62%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%1.02%
Revenue 1Y (TTM)5.54%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%-17.27%
3.2 Future
The Earnings Per Share is expected to grow by 8.27% on average over the next years. This is quite good.
Based on estimates for the next years, AXS will show a small growth in Revenue. The Revenue will grow by 6.68% on average per year.
EPS Next Y0.82%
EPS Next 2Y6.16%
EPS Next 3Y8.27%
EPS Next 5YN/A
Revenue Next Year9.07%
Revenue Next 2Y8.44%
Revenue Next 3Y6.68%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.55, the valuation of AXS can be described as very reasonable.
Based on the Price/Earnings ratio, AXS is valued a bit cheaper than the industry average as 73.43% of the companies are valued more expensively.
AXS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.
AXS is valuated reasonably with a Price/Forward Earnings ratio of 8.48.
67.83% of the companies in the same industry are more expensive than AXS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.65. AXS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXS indicates a somewhat cheap valuation: AXS is cheaper than 77.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AXS is valued a bit cheaper than the industry average as 74.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.12 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AXS does not grow enough to justify the current Price/Earnings ratio.
AXS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)10.4
PEG (5Y)0.25
EPS Next 2Y6.16%
EPS Next 3Y8.27%
5. Dividend
5.1 Amount
AXS has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, AXS has a dividend in line with its industry peers.
AXS's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of AXS has a limited annual growth rate of 0.21%.
AXS has paid a dividend for at least 10 years, which is a reliable track record.
AXS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.21%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
AXS pays out 17.31% of its income as dividend. This is a sustainable payout ratio.
AXS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.31%
EPS Next 2Y6.16%
EPS Next 3Y8.27%
95.64
+0.57 (+0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.26%
Inst Owner Change0.36%
Ins Owners0.65%
Ins Owner Change2.36%
Market Cap7.52B
Analysts77.14
Price Target110.29 (15.32%)
Short Float %1.96%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend2.16
Dividend Growth(5Y)0.21%
DP17.31%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.8%
Min EPS beat(2)5.36%
Max EPS beat(2)14.24%
EPS beat(4)4
Avg EPS beat(4)9.43%
Min EPS beat(4)5.36%
Max EPS beat(4)14.24%
EPS beat(8)8
Avg EPS beat(8)31.93%
EPS beat(12)11
Avg EPS beat(12)19.85%
EPS beat(16)15
Avg EPS beat(16)33.32%
Revenue beat(2)0
Avg Revenue beat(2)-7.69%
Min Revenue beat(2)-9.72%
Max Revenue beat(2)-5.65%
Revenue beat(4)2
Avg Revenue beat(4)-1.65%
Min Revenue beat(4)-9.72%
Max Revenue beat(4)6.56%
Revenue beat(8)4
Avg Revenue beat(8)0.79%
Revenue beat(12)6
Avg Revenue beat(12)1.4%
Revenue beat(16)9
Avg Revenue beat(16)6.92%
PT rev (1m)0.58%
PT rev (3m)1.73%
EPS NQ rev (1m)-2.35%
EPS NQ rev (3m)-10.9%
EPS NY rev (1m)0.87%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 8.48 | ||
| P/S | 1.26 | ||
| P/FCF | 4.12 | ||
| P/OCF | 4.08 | ||
| P/B | 1.24 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)11.18
EY11.69%
EPS(NY)11.27
Fwd EY11.79%
FCF(TTM)23.23
FCFY24.29%
OCF(TTM)23.46
OCFY24.53%
SpS75.87
BVpS77.42
TBVpS74.34
PEG (NY)10.4
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 17.27% | ||
| ROCE | 3.27% | ||
| ROIC | 2.59% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 5.35% | ||
| OM | 17.63% | ||
| PM (TTM) | 17.62% | ||
| GM | N/A | ||
| FCFM | 30.62% |
ROA(3y)1.69%
ROA(5y)1.33%
ROE(3y)9.33%
ROE(5y)7.21%
ROIC(3y)1.54%
ROIC(5y)1.36%
ROICexc(3y)1.66%
ROICexc(5y)1.45%
ROICexgc(3y)3.05%
ROICexgc(5y)2.57%
ROCE(3y)1.95%
ROCE(5y)1.72%
ROICexcg growth 3Y15.11%
ROICexcg growth 5Y17.13%
ROICexc growth 3Y10.27%
ROICexc growth 5Y13.84%
OM growth 3Y9.71%
OM growth 5Y15.36%
PM growth 3Y16.87%
PM growth 5Y26.54%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 31.45% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 16.39 | ||
| Cash Conversion | 166.62% | ||
| Profit Quality | 173.79% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.27%
ROIC/WACC0.31
Cap/Depr(3y)42.19%
Cap/Depr(5y)50.45%
Cap/Sales(3y)0.52%
Cap/Sales(5y)0.64%
Profit Quality(3y)289.19%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.62%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%1.02%
EPS Next Y0.82%
EPS Next 2Y6.16%
EPS Next 3Y8.27%
EPS Next 5YN/A
Revenue 1Y (TTM)5.54%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%-17.27%
Revenue Next Year9.07%
Revenue Next 2Y8.44%
Revenue Next 3Y6.68%
Revenue Next 5YN/A
EBIT growth 1Y85.59%
EBIT growth 3Y13.92%
EBIT growth 5Y18.58%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y49.25%
FCF growth 3Y19.31%
FCF growth 5Y68.16%
OCF growth 1Y46.93%
OCF growth 3Y18.28%
OCF growth 5Y56.11%