AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
NYSE:AXS - New York Stock Exchange, Inc. - BMG0692U1099 - Common Stock - Currency: USD
Overall AXS gets a fundamental rating of 5 out of 10. We evaluated AXS against 144 industry peers in the Insurance industry. AXS has only an average score on both its financial health and profitability. AXS is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years AXS always reported a positive cash flow from operatings.
1.2 Ratios
AXS has a Return On Assets (2.56%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 14.40%, AXS is doing good in the industry, outperforming 70.14% of the companies in the same industry.
The Return On Invested Capital of AXS (2.61%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AXS is below the industry average of 4.07%.
The 3 year average ROIC (1.54%) for AXS is below the current ROIC(2.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 14.4% | ||
| ROIC | 2.61% |
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
AXS's Profit Margin of 14.00% is fine compared to the rest of the industry. AXS outperforms 78.47% of its industry peers.
In the last couple of years the Profit Margin of AXS has grown nicely.
Looking at the Operating Margin, with a value of 17.91%, AXS is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
In the last couple of years the Operating Margin of AXS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.91% | ||
| PM (TTM) | 14% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXS is destroying value.
The number of shares outstanding for AXS has been reduced compared to 1 year ago.
Compared to 5 years ago, AXS has less shares outstanding
Compared to 1 year ago, AXS has an improved debt to assets ratio.
2.2 Solvency
AXS has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.75, AXS is in the better half of the industry, outperforming 73.61% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that AXS is not too dependend on debt financing.
The Debt to Equity ratio of AXS (0.22) is better than 70.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | N/A |
ROIC/WACC0.28
WACC9.26%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.87%, which is quite good.
The Earnings Per Share has been growing by 34.71% on average over the past years. This is a very strong growth
AXS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
AXS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
EPS 1Y (TTM)16.87%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%23.35%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%-39.34%
3.2 Future
Based on estimates for the next years, AXS will show a small growth in Earnings Per Share. The EPS will grow by 7.50% on average per year.
The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y3.36%
EPS Next 2Y6.03%
EPS Next 3Y7.5%
EPS Next 5YN/A
Revenue Next Year4.61%
Revenue Next 2Y7.45%
Revenue Next 3Y5.12%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AXS is valuated reasonably with a Price/Earnings ratio of 8.41.
AXS's Price/Earnings ratio is a bit cheaper when compared to the industry. AXS is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, AXS is valued rather cheaply.
AXS is valuated cheaply with a Price/Forward Earnings ratio of 7.88.
AXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXS is cheaper than 68.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, AXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXS is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXS indicates a somewhat cheap valuation: AXS is cheaper than 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.45 | ||
| EV/EBITDA | 5.56 |
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 AXS may justify a higher PE ratio.
PEG (NY)2.51
PEG (5Y)0.24
EPS Next 2Y6.03%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.71%, AXS has a reasonable but not impressive dividend return.
AXS's Dividend Yield is comparable with the industry average which is at 3.51.
AXS's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
The dividend of AXS has a limited annual growth rate of 0.21%.
AXS has been paying a dividend for at least 10 years, so it has a reliable track record.
AXS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
AXS pays out 21.34% 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.
DP21.34%
EPS Next 2Y6.03%
EPS Next 3Y7.5%
99.11
+0.88 (+0.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.56%
Inst Owner Change-1.69%
Ins Owners0.62%
Ins Owner Change2.29%
Market Cap7.80B
Analysts77.14
Price Target115.52 (16.56%)
Short Float %2.26%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend2.16
Dividend Growth(5Y)0.21%
DP21.34%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.98%
Min EPS beat(2)14.24%
Max EPS beat(2)17.73%
EPS beat(4)4
Avg EPS beat(4)12.37%
Min EPS beat(4)5.36%
Max EPS beat(4)17.73%
EPS beat(8)8
Avg EPS beat(8)31.99%
EPS beat(12)11
Avg EPS beat(12)19.2%
EPS beat(16)15
Avg EPS beat(16)27.12%
Revenue beat(2)0
Avg Revenue beat(2)-23.86%
Min Revenue beat(2)-42.06%
Max Revenue beat(2)-5.65%
Revenue beat(4)1
Avg Revenue beat(4)-13.81%
Min Revenue beat(4)-42.06%
Max Revenue beat(4)2.19%
Revenue beat(8)4
Avg Revenue beat(8)-3.22%
Revenue beat(12)6
Avg Revenue beat(12)0.7%
Revenue beat(16)9
Avg Revenue beat(16)5.4%
PT rev (1m)1%
PT rev (3m)4.98%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)0.64%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)-1.31%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)-3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 7.88 | ||
| P/S | 1.28 | ||
| P/FCF | 4.45 | ||
| P/OCF | 4.4 | ||
| P/B | 1.32 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)11.78
EY11.89%
EPS(NY)12.57
Fwd EY12.68%
FCF(TTM)22.29
FCFY22.49%
OCF(TTM)22.5
OCFY22.7%
SpS77.23
BVpS75.05
TBVpS72
PEG (NY)2.51
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 14.4% | ||
| ROCE | 3.3% | ||
| ROIC | 2.61% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 5.44% | ||
| OM | 17.91% | ||
| PM (TTM) | 14% | ||
| GM | N/A | ||
| FCFM | 28.86% |
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-Score9
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 30.02% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 17.06 | ||
| Cash Conversion | 154.86% | ||
| Profit Quality | 206.23% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC9.26%
ROIC/WACC0.28
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)16.87%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%23.35%
EPS Next Y3.36%
EPS Next 2Y6.03%
EPS Next 3Y7.5%
EPS Next 5YN/A
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%-39.34%
Revenue Next Year4.61%
Revenue Next 2Y7.45%
Revenue Next 3Y5.12%
Revenue Next 5YN/A
EBIT growth 1Y75.9%
EBIT growth 3Y13.92%
EBIT growth 5Y18.58%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y132.26%
FCF growth 3Y19.31%
FCF growth 5Y68.16%
OCF growth 1Y126.51%
OCF growth 3Y18.28%
OCF growth 5Y56.11%