AXON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. AXON has only an average score on both its financial health and profitability. AXON is valued quite expensively, but it does show have an excellent growth rating. These ratings would make AXON suitable for growth investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AXON was profitable.
In the past year AXON had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AXON reported negative net income in multiple years.
Each year in the past 5 years AXON had a positive operating cash flow.

1.2 Ratios

AXON has a Return On Assets of 3.86%. This is in the better half of the industry: AXON outperforms 60.27% of its industry peers.
Looking at the Return On Equity, with a value of 8.49%, AXON is in the better half of the industry, outperforming 63.01% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	3.86%
ROE	8.49%
ROIC	N/A

ROA(3y)6.24%

ROA(5y)3.01%

ROE(3y)12.89%

ROE(5y)6.55%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

AXON has a better Profit Margin (10.05%) than 82.19% of its industry peers.
AXON's Profit Margin has improved in the last couple of years.
AXON has a Gross Margin of 60.31%. This is amongst the best in the industry. AXON outperforms 89.04% of its industry peers.
In the last couple of years the Gross Margin of AXON has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	10.05%
GM	60.31%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5Y155.54%

GM growth 3Y-1.64%

GM growth 5Y0.59%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

AXON does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for AXON has been increased compared to 1 year ago.
The number of shares outstanding for AXON has been increased compared to 5 years ago.
Compared to 1 year ago, AXON has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 9.01 indicates that AXON is not in any danger for bankruptcy at the moment.
The Altman-Z score of AXON (9.01) is better than 78.08% of its industry peers.
AXON has a debt to FCF ratio of 13.85. This is a negative value and a sign of low solvency as AXON would need 13.85 years to pay back of all of its debts.
AXON has a Debt to FCF ratio of 13.85. This is comparable to the rest of the industry: AXON outperforms 52.05% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that AXON is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, AXON is not doing good in the industry: 60.27% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.57
Debt/FCF	13.85
Altman-Z	9.01

ROIC/WACCN/A

WACC9.78%

2.3 Liquidity

AXON has a Current Ratio of 3.12. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
AXON has a better Current ratio (3.12) than 63.01% of its industry peers.
A Quick Ratio of 2.89 indicates that AXON has no problem at all paying its short term obligations.
AXON has a Quick ratio of 2.89. This is in the better half of the industry: AXON outperforms 79.45% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.12
Quick Ratio	2.89

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 37.80% over the past year.
Measured over the past years, AXON shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.41% on average per year.
The Revenue has grown by 32.01% in the past year. This is a very strong growth!
Measured over the past years, AXON shows a very strong growth in Revenue. The Revenue has been growing by 31.44% on average per year.

EPS 1Y (TTM)37.8%

EPS 3Y36.34%

EPS 5Y41.41%

EPS Q2Q%-19.31%

Revenue 1Y (TTM)32.01%

Revenue growth 3Y34.11%

Revenue growth 5Y31.44%

Sales Q2Q%30.57%

3.2 Future

The Earnings Per Share is expected to grow by 18.44% on average over the next years. This is quite good.
AXON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.50% yearly.

EPS Next Y9.68%

EPS Next 2Y14.77%

EPS Next 3Y18.44%

EPS Next 5YN/A

Revenue Next Year31.99%

Revenue Next 2Y28.74%

Revenue Next 3Y27.14%

Revenue Next 5Y19.5%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 89.57, AXON can be considered very expensive at the moment.
AXON's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.32, AXON is valued quite expensively.
The Price/Forward Earnings ratio is 78.41, which means the current valuation is very expensive for AXON.
AXON's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, AXON is valued quite expensively.

		Industry Rank	Sector Rank
PE	89.57
Fwd PE	78.41

4.2 Price Multiples

65.75% of the companies in the same industry are cheaper than AXON, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as AXON.

		Industry Rank	Sector Rank
P/FCF	330.45
EV/EBITDA	1003.92

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AXON's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.