Axos Financial, Inc.
Axos Financial, Inc. Fundamental Analysis
Axos Financial, Inc. (AX) shows strong financial fundamentals with a PE ratio of 12.04, profit margin of 22.85%, and ROE of 16.59%. The company generates $2.0B in annual revenue with moderate year-over-year growth of 9.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AX's fundamental strength across five key dimensions:
Efficiency Score
WeakAX struggles to generate sufficient returns from assets.
Valuation Score
ModerateAX shows balanced valuation metrics.
Growth Score
ModerateAX shows steady but slowing expansion.
Financial Health Score
ModerateAX shows balanced financial health with some risks.
Profitability Score
ExcellentAX achieves industry-leading margins.
Key Financial Metrics
Is AX Expensive or Cheap?
P/E Ratio
AX trades at 12.04 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AX's PEG of 2.09 indicates potential overvaluation.
Price to Book
The market values Axos Financial, Inc. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.96 times EBITDA. This is generally considered low.
How Well Does AX Make Money?
Net Profit Margin
For every $100 in sales, Axos Financial, Inc. keeps $22.85 as profit after all expenses.
Operating Margin
Core operations generate 31.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.59 in profit for every $100 of shareholder equity.
ROA
Axos Financial, Inc. generates $1.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Axos Financial, Inc. produces operating cash flow of $478.02M, showing steady but balanced cash generation.
Free Cash Flow
Axos Financial, Inc. generates strong free cash flow of $420.02M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.41 in free cash annually.
FCF Yield
AX converts 7.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How AX Stacks Against Its Sector Peers
| Metric | AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.04 | 18.86 | Better (Cheaper) |
| ROE | 16.59% | 847.00% | Weak |
| Net Margin | 22.85% | 4202.00% | Weak |
| Debt/Equity | 0.38 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.06 | 667.17 | Weak Liquidity |
| ROA | 1.62% | -21543.00% (disorted) | Weak |
AX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Axos Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
187.47%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
152.32%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
84.51%
Industry Style: Value, Dividend, Cyclical
High Growth