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AXON ENTERPRISE INC (AXON) Stock Fundamental Analysis

NASDAQ:AXON - Nasdaq - US05464C1018 - Common Stock - Currency: USD

598.14  -12.18 (-2%)

Fundamental Rating

6

Overall AXON gets a fundamental rating of 6 out of 10. We evaluated AXON against 65 industry peers in the Aerospace & Defense industry. While AXON has a great health rating, its profitability is only average at the moment. AXON shows excellent growth, but is valued quite expensive already. These ratings could make AXON a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

AXON had positive earnings in the past year.
In the past year AXON had a positive cash flow from operations.
In multiple years AXON reported negative net income over the last 5 years.
Each year in the past 5 years AXON had a positive operating cash flow.
AXON Yearly Net Income VS EBIT VS OCF VS FCFAXON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M

1.2 Ratios

Looking at the Return On Assets, with a value of 10.79%, AXON belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
AXON has a better Return On Equity (20.59%) than 92.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.25%, AXON is doing worse than 60.94% of the companies in the same industry.
Industry RankSector Rank
ROA 10.79%
ROE 20.59%
ROIC 3.25%
ROA(3y)2.22%
ROA(5y)1.33%
ROE(3y)5.56%
ROE(5y)3.33%
ROIC(3y)N/A
ROIC(5y)N/A
AXON Yearly ROA, ROE, ROICAXON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10

1.3 Margins

The Profit Margin of AXON (18.01%) is better than 93.75% of its industry peers.
AXON's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.75%, AXON is in line with its industry, outperforming 45.31% of the companies in the same industry.
AXON's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.14%, AXON belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
In the last couple of years the Gross Margin of AXON has remained more or less at the same level.
Industry RankSector Rank
OM 5.75%
PM (TTM) 18.01%
GM 59.14%
OM growth 3YN/A
OM growth 5Y10.86%
PM growth 3YN/A
PM growth 5Y9.9%
GM growth 3Y-0.01%
GM growth 5Y-0.15%
AXON Yearly Profit, Operating, Gross MarginsAXON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXON is destroying value.
AXON has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AXON has more shares outstanding
Compared to 1 year ago, AXON has an improved debt to assets ratio.
AXON Yearly Shares OutstandingAXON Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
AXON Yearly Total Debt VS Total AssetsAXON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

An Altman-Z score of 16.08 indicates that AXON is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 16.08, AXON belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
The Debt to FCF ratio of AXON is 3.09, which is a good value as it means it would take AXON, 3.09 years of fcf income to pay off all of its debts.
AXON's Debt to FCF ratio of 3.09 is amongst the best of the industry. AXON outperforms 85.94% of its industry peers.
AXON has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
AXON has a better Debt to Equity ratio (0.32) than 68.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 3.09
Altman-Z 16.08
ROIC/WACC0.32
WACC10.22%
AXON Yearly LT Debt VS Equity VS FCFAXON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

AXON has a Current Ratio of 2.96. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.96, AXON is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
AXON has a Quick Ratio of 2.63. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AXON (2.63) is better than 85.94% of its industry peers.
Industry RankSector Rank
Current Ratio 2.96
Quick Ratio 2.63
AXON Yearly Current Assets VS Current LiabilitesAXON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.61% over the past year.
The Earnings Per Share has been growing by 45.65% on average over the past years. This is a very strong growth
AXON shows a strong growth in Revenue. In the last year, the Revenue has grown by 63.57%.
Measured over the past years, AXON shows a very strong growth in Revenue. The Revenue has been growing by 30.06% on average per year.
EPS 1Y (TTM)32.61%
EPS 3Y32.14%
EPS 5Y45.65%
EPS Q2Q%42.16%
Revenue 1Y (TTM)63.57%
Revenue growth 3Y31.92%
Revenue growth 5Y30.06%
Sales Q2Q%31.59%

3.2 Future

Based on estimates for the next years, AXON will show a very strong growth in Earnings Per Share. The EPS will grow by 24.30% on average per year.
Based on estimates for the next years, AXON will show a very strong growth in Revenue. The Revenue will grow by 25.86% on average per year.
EPS Next Y28.46%
EPS Next 2Y24.48%
EPS Next 3Y24.3%
EPS Next 5YN/A
Revenue Next Year33.73%
Revenue Next 2Y28.33%
Revenue Next 3Y25.86%
Revenue Next 5YN/A

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
AXON Yearly Revenue VS EstimatesAXON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
AXON Yearly EPS VS EstimatesAXON Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 121.57, AXON can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AXON is on the same level as its industry peers.
AXON is valuated expensively when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 93.47, AXON can be considered very expensive at the moment.
60.94% of the companies in the same industry are cheaper than AXON, based on the Price/Forward Earnings ratio.
AXON's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.47.
Industry RankSector Rank
PE 121.57
Fwd PE 93.47
AXON Price Earnings VS Forward Price EarningsAXON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

AXON's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AXON is more expensive than 67.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXON is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 207.18
EV/EBITDA 255.03
AXON Per share dataAXON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AXON does not grow enough to justify the current Price/Earnings ratio.
AXON has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AXON's earnings are expected to grow with 24.30% in the coming years.
PEG (NY)4.27
PEG (5Y)2.66
EPS Next 2Y24.48%
EPS Next 3Y24.3%

0

5. Dividend

5.1 Amount

No dividends for AXON!.
Industry RankSector Rank
Dividend Yield N/A

AXON ENTERPRISE INC

NASDAQ:AXON (1/27/2025, 11:34:00 AM)

598.14

-12.18 (-2%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)N/A N/A
Inst Owners81.14%
Inst Owner ChangeN/A
Ins Owners0.73%
Ins Owner Change-8.48%
Market Cap45.61B
Analysts85.45
Price Target596.96 (-0.2%)
Short Float %3.52%
Short Ratio2.52
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.83%
Min EPS beat(2)15%
Max EPS beat(2)18.66%
EPS beat(4)4
Avg EPS beat(4)20.44%
Min EPS beat(4)15%
Max EPS beat(4)28.74%
EPS beat(8)8
Avg EPS beat(8)35.66%
EPS beat(12)12
Avg EPS beat(12)44.55%
EPS beat(16)16
Avg EPS beat(16)71.95%
Revenue beat(2)2
Avg Revenue beat(2)2.46%
Min Revenue beat(2)1.63%
Max Revenue beat(2)3.29%
Revenue beat(4)4
Avg Revenue beat(4)1.96%
Min Revenue beat(4)0.65%
Max Revenue beat(4)3.29%
Revenue beat(8)8
Avg Revenue beat(8)3.65%
Revenue beat(12)12
Avg Revenue beat(12)5.06%
Revenue beat(16)16
Avg Revenue beat(16)8.38%
PT rev (1m)5.81%
PT rev (3m)53.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.57%
EPS NY rev (1m)0%
EPS NY rev (3m)8.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.07%
Valuation
Industry RankSector Rank
PE 121.57
Fwd PE 93.47
P/S 19
P/FCF 207.18
P/OCF 152.95
P/B 21.72
P/tB 26.68
EV/EBITDA 255.03
EPS(TTM)4.92
EY0.82%
EPS(NY)6.4
Fwd EY1.07%
FCF(TTM)2.89
FCFY0.48%
OCF(TTM)3.91
OCFY0.65%
SpS31.48
BVpS27.54
TBVpS22.42
PEG (NY)4.27
PEG (5Y)2.66
Profitability
Industry RankSector Rank
ROA 10.79%
ROE 20.59%
ROCE 4.34%
ROIC 3.25%
ROICexc 5.1%
ROICexgc 6.32%
OM 5.75%
PM (TTM) 18.01%
GM 59.14%
FCFM 9.17%
ROA(3y)2.22%
ROA(5y)1.33%
ROE(3y)5.56%
ROE(5y)3.33%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-3.88%
ROICexc growth 3YN/A
ROICexc growth 5Y-0.69%
OM growth 3YN/A
OM growth 5Y10.86%
PM growth 3YN/A
PM growth 5Y9.9%
GM growth 3Y-0.01%
GM growth 5Y-0.15%
F-Score5
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 3.09
Debt/EBITDA 3.8
Cap/Depr 191.32%
Cap/Sales 3.25%
Interest Coverage 250
Cash Conversion 166.79%
Profit Quality 50.92%
Current Ratio 2.96
Quick Ratio 2.63
Altman-Z 16.08
F-Score5
WACC10.22%
ROIC/WACC0.32
Cap/Depr(3y)227.92%
Cap/Depr(5y)282.35%
Cap/Sales(3y)4.8%
Cap/Sales(5y)5.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.61%
EPS 3Y32.14%
EPS 5Y45.65%
EPS Q2Q%42.16%
EPS Next Y28.46%
EPS Next 2Y24.48%
EPS Next 3Y24.3%
EPS Next 5YN/A
Revenue 1Y (TTM)63.57%
Revenue growth 3Y31.92%
Revenue growth 5Y30.06%
Sales Q2Q%31.59%
Revenue Next Year33.73%
Revenue Next 2Y28.33%
Revenue Next 3Y25.86%
Revenue Next 5YN/A
EBIT growth 1Y2.57%
EBIT growth 3YN/A
EBIT growth 5Y44.18%
EBIT Next Year94.84%
EBIT Next 3Y46.7%
EBIT Next 5YN/A
FCF growth 1Y272.22%
FCF growth 3YN/A
FCF growth 5Y19.84%
OCF growth 1Y154.49%
OCF growth 3Y70.06%
OCF growth 5Y24.26%