AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
NYSE:AXS - New York Stock Exchange, Inc. - BMG0692U1099 - Common Stock - Currency: USD
Taking everything into account, AXS scores 5 out of 10 in our fundamental rating. AXS was compared to 143 industry peers in the Insurance industry. There are concerns on the financial health of AXS while its profitability can be described as average. AXS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AXS had positive earnings in the past year.
AXS had a negative operating cash flow in the past year.
AXS had positive earnings in 4 of the past 5 years.
AXS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXS has a Return On Assets (2.52%) which is in line with its industry peers.
AXS's Return On Equity of 13.95% is fine compared to the rest of the industry. AXS outperforms 68.53% of its industry peers.
AXS has a better Return On Invested Capital (2.82%) than 60.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AXS is below the industry average of 4.04%.
The 3 year average ROIC (1.54%) for AXS is below the current ROIC(2.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 13.95% | ||
| ROIC | 2.82% |
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
With a decent Profit Margin value of 13.79%, AXS is doing good in the industry, outperforming 79.72% of the companies in the same industry.
In the last couple of years the Profit Margin of AXS has grown nicely.
Looking at the Operating Margin, with a value of 19.40%, AXS is in the better half of the industry, outperforming 79.02% 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 | 19.4% | ||
| PM (TTM) | 13.79% | ||
| 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.
The number of shares outstanding for AXS has been reduced compared to 5 years ago.
The debt/assets ratio for AXS has been reduced compared to a year ago.
2.2 Solvency
AXS has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
AXS has a Debt to Equity ratio of 0.21. This is in the better half of the industry: AXS outperforms 68.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.11%
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 12.62%, which is quite good.
AXS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.71% yearly.
Looking at the last year, AXS shows a small growth in Revenue. The Revenue has grown by 7.73% in the last year.
The Revenue has been growing slightly by 2.79% on average over the past years.
EPS 1Y (TTM)12.62%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%12.29%
Revenue 1Y (TTM)7.73%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%3.92%
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 7.41% on average per year.
Based on estimates for the next years, AXS will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
EPS Next Y3.16%
EPS Next 2Y5.97%
EPS Next 3Y7.41%
EPS Next 5YN/A
Revenue Next Year4.82%
Revenue Next 2Y7.34%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 7.85, the valuation of AXS can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of AXS indicates a somewhat cheap valuation: AXS is cheaper than 75.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.99. AXS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.59, which indicates a rather cheap valuation of AXS.
69.23% of the companies in the same industry are more expensive than AXS, based on the Price/Forward Earnings ratio.
AXS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 7.59 |
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 69.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.19 |
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)2.49
PEG (5Y)0.23
EPS Next 2Y5.97%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
AXS has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
AXS's Dividend Yield is comparable with the industry average which is at 3.37.
Compared to the average S&P500 Dividend Yield of 2.40, AXS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
AXS pays out 20.76% 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.
DP20.76%
EPS Next 2Y5.97%
EPS Next 3Y7.41%
95.28
+0.95 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.56%
Inst Owner Change0.92%
Ins Owners0.62%
Ins Owner Change-1.17%
Market Cap7.45B
Analysts77.14
Price Target115.77 (21.51%)
Short Float %2.61%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend2.16
Dividend Growth(5Y)0.21%
DP20.76%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.5%
Min EPS beat(2)11.27%
Max EPS beat(2)17.73%
EPS beat(4)4
Avg EPS beat(4)12.15%
Min EPS beat(4)5.36%
Max EPS beat(4)17.73%
EPS beat(8)8
Avg EPS beat(8)31.74%
EPS beat(12)11
Avg EPS beat(12)19.06%
EPS beat(16)15
Avg EPS beat(16)25.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-4.78%
Min Revenue beat(4)-9.72%
Max Revenue beat(4)-0.82%
Revenue beat(8)3
Avg Revenue beat(8)0.63%
Revenue beat(12)6
Avg Revenue beat(12)4.58%
Revenue beat(16)8
Avg Revenue beat(16)6.8%
PT rev (1m)-0.11%
PT rev (3m)2.61%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-4.1%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-3.51%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-3.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 7.59 | ||
| P/S | 1.19 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.21 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 6.19 |
EPS(TTM)12.14
EY12.74%
EPS(NY)12.55
Fwd EY13.18%
FCF(TTM)-5.51
FCFYN/A
OCF(TTM)-5.15
OCFYN/A
SpS79.9
BVpS78.99
TBVpS75.95
PEG (NY)2.49
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 13.95% | ||
| ROCE | 3.57% | ||
| ROIC | 2.82% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 5.91% | ||
| OM | 19.4% | ||
| PM (TTM) | 13.79% | ||
| GM | N/A | ||
| FCFM | N/A |
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-Score7
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 50.85% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 19.14 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.11%
ROIC/WACC0.35
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)12.62%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%12.29%
EPS Next Y3.16%
EPS Next 2Y5.97%
EPS Next 3Y7.41%
EPS Next 5YN/A
Revenue 1Y (TTM)7.73%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%3.92%
Revenue Next Year4.82%
Revenue Next 2Y7.34%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
EBIT growth 1Y85.05%
EBIT growth 3Y13.92%
EBIT growth 5Y18.58%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-157.22%
FCF growth 3Y19.31%
FCF growth 5Y68.16%
OCF growth 1Y-151.64%
OCF growth 3Y18.28%
OCF growth 5Y56.11%