AXIS Capital Holdings Limited
AXIS Capital Holdings Limited Fundamental Analysis
AXIS Capital Holdings Limited (AXS) shows moderate financial fundamentals with a PE ratio of 7.85, profit margin of 15.68%, and ROE of 16.27%. The company generates $6.6B in annual revenue with moderate year-over-year growth of 6.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AXS's fundamental strength across five key dimensions:
Efficiency Score
WeakAXS struggles to generate sufficient returns from assets.
Valuation Score
ModerateAXS shows balanced valuation metrics.
Growth Score
ModerateAXS shows steady but slowing expansion.
Financial Health Score
ModerateAXS shows balanced financial health with some risks.
Profitability Score
ModerateAXS maintains healthy but balanced margins.
Key Financial Metrics
Is AXS Expensive or Cheap?
P/E Ratio
AXS trades at 7.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AXS's PEG of 3.21 indicates potential overvaluation.
Price to Book
The market values AXIS Capital Holdings Limited at 1.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.85 times EBITDA. This is generally considered low.
How Well Does AXS Make Money?
Net Profit Margin
For every $100 in sales, AXIS Capital Holdings Limited keeps $15.68 as profit after all expenses.
Operating Margin
Core operations generate 18.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.27 in profit for every $100 of shareholder equity.
ROA
AXIS Capital Holdings Limited generates $3.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AXIS Capital Holdings Limited generates limited operating cash flow of $-321.39M, signaling weaker underlying cash strength.
Free Cash Flow
AXIS Capital Holdings Limited generates weak or negative free cash flow of $-321.39M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.17 in free cash annually.
FCF Yield
AXS converts -3.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How AXS Stacks Against Its Sector Peers
| Metric | AXS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.85 | 18.86 | Better (Cheaper) |
| ROE | 16.27% | 847.00% | Weak |
| Net Margin | 15.68% | 4202.00% | Weak |
| Debt/Equity | 0.25 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.71 | 667.17 | Weak Liquidity |
| ROA | 3.12% | -21543.00% (disorted) | Weak |
AXS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AXIS Capital Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.79%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
233.35%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
824.04%
Industry Style: Value, Dividend, Cyclical
High Growth