Axon Enterprise, Inc.
Axon Enterprise, Inc. Fundamental Analysis
Axon Enterprise, Inc. (AXON) shows moderate financial fundamentals with a PE ratio of 129.22, profit margin of 10.05%, and ROE of 9.66%. The company generates $2.6B in annual revenue with strong year-over-year growth of 33.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.0/100 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 AXON's fundamental strength across five key dimensions:
Efficiency Score
WeakAXON struggles to generate sufficient returns from assets.
Valuation Score
ModerateAXON shows balanced valuation metrics.
Growth Score
ModerateAXON shows steady but slowing expansion.
Financial Health Score
ExcellentAXON maintains a strong and stable balance sheet.
Profitability Score
WeakAXON struggles to sustain strong margins.
Key Financial Metrics
Is AXON Expensive or Cheap?
P/E Ratio
AXON trades at 129.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AXON's PEG of -5.98 indicates potential undervaluation.
Price to Book
The market values Axon Enterprise, Inc. at 10.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 105.34 times EBITDA. This signals the market has high growth expectations.
How Well Does AXON Make Money?
Net Profit Margin
For every $100 in sales, Axon Enterprise, Inc. keeps $10.05 as profit after all expenses.
Operating Margin
Core operations generate -0.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.66 in profit for every $100 of shareholder equity.
ROA
Axon Enterprise, Inc. generates $3.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Axon Enterprise, Inc. generates limited operating cash flow of $245.81M, signaling weaker underlying cash strength.
Free Cash Flow
Axon Enterprise, Inc. produces free cash flow of $145.93M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.85 in free cash annually.
FCF Yield
AXON converts 0.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
129.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How AXON Stacks Against Its Sector Peers
| Metric | AXON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 129.22 | 26.49 | Worse (Expensive) |
| ROE | 9.66% | 1307.00% | Weak |
| Net Margin | 10.05% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.69 | 0.81 | Neutral |
| Current Ratio | 3.12 | 10.48 | Strong Liquidity |
| ROA | 3.86% | -1549793.00% (disorted) | Weak |
AXON outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Axon Enterprise, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
206.54%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
33303.28%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
385.83%
Industry Style: Cyclical, Value, Infrastructure
High Growth