AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
USA - NYSE:AXS - BMG0692U1099 - Common Stock
96.21 USD
-0.58 (-0.6%)
96.21 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AXS. AXS was compared to 145 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AXS had positive earnings in the past year.
In the past year AXS has reported a negative 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 of 2.52%. This is comparable to the rest of the industry: AXS outperforms 59.59% of its industry peers.
Looking at the Return On Equity, with a value of 13.95%, AXS is in the better half of the industry, outperforming 68.49% of the companies in the same industry.
AXS's Return On Invested Capital of 1.91% is in line compared to the rest of the industry. AXS outperforms 45.89% of its industry peers.
AXS had an Average Return On Invested Capital over the past 3 years of 1.54%. This is below the industry average of 4.40%.
The last Return On Invested Capital (1.91%) for AXS is above the 3 year average (1.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 13.95% | ||
| ROIC | 1.91% |
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
Looking at the Profit Margin, with a value of 13.79%, AXS is in the better half of the industry, outperforming 77.40% of the companies in the same industry.
In the last couple of years the Profit Margin of AXS has grown nicely.
AXS's Operating Margin of 13.13% is in line compared to the rest of the industry. AXS outperforms 58.90% of its industry peers.
AXS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.13% | ||
| 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.
AXS has less shares outstanding than it did 1 year ago.
AXS has less shares outstanding than it did 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 67.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.24
WACC7.97%
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 12.62% over the past year.
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.
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)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 quite strong growth in Earnings Per Share. The EPS will grow by 8.02% on average per year.
Based on estimates for the next years, AXS will show a small growth in Revenue. The Revenue will grow by 7.19% on average per year.
EPS Next Y7.38%
EPS Next 2Y6.6%
EPS Next 3Y8.02%
EPS Next 5YN/A
Revenue Next Year4.63%
Revenue Next 2Y6.96%
Revenue Next 3Y7.19%
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.
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
With a Price/Earnings ratio of 7.93, the valuation of AXS can be described as very cheap.
71.23% of the companies in the same industry are more expensive than AXS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.02. AXS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.57 indicates a rather cheap valuation of AXS.
Based on the Price/Forward Earnings ratio, AXS is valued a bit cheaper than 72.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, AXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
AXS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
AXS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.07
PEG (5Y)0.23
EPS Next 2Y6.6%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
AXS has a Yearly Dividend Yield of 1.82%.
AXS's Dividend Yield is comparable with the industry average which is at 3.54.
Compared to the average S&P500 Dividend Yield of 2.44, AXS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
20.76% of the earnings are spent on dividend by AXS. This is a low number and sustainable payout ratio.
AXS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.76%
EPS Next 2Y6.6%
EPS Next 3Y8.02%
96.21
-0.58 (-0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners98.97%
Inst Owner Change0.02%
Ins Owners0.61%
Ins Owner Change-0.38%
Market Cap7.52B
Analysts78.46
Price Target115.77 (20.33%)
Short Float %1.51%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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%
PT rev (3m)0.22%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)0.61%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.57 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.22 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 9.13 |
EPS(TTM)12.14
EY12.62%
EPS(NY)12.7
Fwd EY13.2%
FCF(TTM)-5.51
FCFYN/A
OCF(TTM)-5.15
OCFYN/A
SpS79.9
BVpS78.99
TBVpS75.95
PEG (NY)1.07
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 13.95% | ||
| ROCE | 2.41% | ||
| ROIC | 1.91% | ||
| ROICexc | 1.96% | ||
| ROICexgc | 4% | ||
| OM | 13.13% | ||
| 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 | 1.5 | ||
| Cap/Depr | 50.85% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 12.95 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.97%
ROIC/WACC0.24
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 Y7.38%
EPS Next 2Y6.6%
EPS Next 3Y8.02%
EPS Next 5YN/A
Revenue 1Y (TTM)7.73%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%3.92%
Revenue Next Year4.63%
Revenue Next 2Y6.96%
Revenue Next 3Y7.19%
Revenue Next 5YN/A
EBIT growth 1Y25.22%
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%