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AXON ENTERPRISE INC (AXON) Stock Fundamental Analysis

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

729.62  -3.37 (-0.46%)

After market: 728.2 -1.42 (-0.19%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AXON. AXON was compared to 65 industry peers in the Aerospace & Defense industry. AXON has only an average score on both its financial health and profitability. 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

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6

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.
In multiple years AXON reported negative net income over the last 5 years.
AXON had a positive operating cash flow in each of the past 5 years.
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 2024 0 100M -100M 200M 300M 400M

1.2 Ratios

With an excellent Return On Assets value of 7.64%, AXON belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
The Return On Equity of AXON (18.19%) is better than 87.69% of its industry peers.
AXON's Return On Invested Capital of 0.91% is on the low side compared to the rest of the industry. AXON is outperformed by 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXON is significantly below the industry average of 8.44%.
Industry RankSector Rank
ROA 7.64%
ROE 18.19%
ROIC 0.91%
ROA(3y)6.22%
ROA(5y)2.99%
ROE(3y)12.87%
ROE(5y)6.54%
ROIC(3y)3.12%
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 2024 0 5 -5 10 -10 15

1.3 Margins

The Profit Margin of AXON (17.31%) is better than 96.92% of its industry peers.
AXON's Profit Margin has improved in the last couple of years.
The Operating Margin of AXON (2.03%) is worse than 61.54% of its industry peers.
AXON has a Gross Margin of 59.83%. This is amongst the best in the industry. AXON outperforms 90.77% of its industry peers.
AXON's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 2.03%
PM (TTM) 17.31%
GM 59.83%
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%
AXON Yearly Profit, Operating, Gross MarginsAXON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXON is destroying value.
The number of shares outstanding for AXON has been increased compared to 1 year ago.
AXON has more shares outstanding than it did 5 years ago.
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 2024 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 2024 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 10.87 indicates that AXON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.87, AXON belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
The Debt to FCF ratio of AXON is 5.53, which is a neutral value as it means it would take AXON, 5.53 years of fcf income to pay off all of its debts.
AXON has a Debt to FCF ratio of 5.53. This is in the better half of the industry: AXON outperforms 66.15% of its industry peers.
AXON has a Debt/Equity ratio of 0.68. This is a neutral value indicating AXON is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, AXON is doing worse than 63.08% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.53
Altman-Z 10.87
ROIC/WACC0.09
WACC10.31%
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 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 2.83 indicates that AXON has no problem at all paying its short term obligations.
AXON has a better Current ratio (2.83) than 61.54% of its industry peers.
AXON has a Quick Ratio of 2.62. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
AXON has a Quick ratio of 2.62. This is in the better half of the industry: AXON outperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.83
Quick Ratio 2.62
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 2024 500M 1B 1.5B 2B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 39.55% over the past year.
AXON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.41% yearly.
The Revenue has grown by 59.79% in the past year. This is a very strong growth!
AXON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.44% yearly.
EPS 1Y (TTM)39.55%
EPS 3Y36.34%
EPS 5Y41.41%
EPS Q2Q%22.61%
Revenue 1Y (TTM)59.79%
Revenue growth 3Y34.11%
Revenue growth 5Y31.44%
Sales Q2Q%31.01%

3.2 Future

The Earnings Per Share is expected to grow by 15.98% on average over the next years. This is quite good.
Based on estimates for the next years, AXON will show a quite strong growth in Revenue. The Revenue will grow by 19.50% on average per year.
EPS Next Y7.35%
EPS Next 2Y15.38%
EPS Next 3Y15.98%
EPS Next 5YN/A
Revenue Next Year28.07%
Revenue Next 2Y25.41%
Revenue Next 3Y23.13%
Revenue Next 5Y19.5%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
AXON Yearly Revenue VS EstimatesAXON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
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 2027 2 4 6 8

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 118.83 indicates a quite expensive valuation of AXON.
The rest of the industry has a similar Price/Earnings ratio as AXON.
AXON's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 93.22 indicates a quite expensive valuation of AXON.
66.15% of the companies in the same industry are cheaper than AXON, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. AXON is valued rather expensively when compared to this.
Industry RankSector Rank
PE 118.83
Fwd PE 93.22
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 66.15% of the companies in the same industry.
AXON's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 156.65
EV/EBITDA 500.44
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.
The decent profitability rating of AXON may justify a higher PE ratio.
A more expensive valuation may be justified as AXON's earnings are expected to grow with 15.98% in the coming years.
PEG (NY)16.16
PEG (5Y)2.87
EPS Next 2Y15.38%
EPS Next 3Y15.98%

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0

5. Dividend

5.1 Amount

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

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AXON ENTERPRISE INC

NASDAQ:AXON (7/11/2025, 10:36:33 PM)

After market: 728.2 -1.42 (-0.19%)

729.62

-3.37 (-0.46%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners81.97%
Inst Owner ChangeN/A
Ins Owners0.58%
Ins Owner Change6.11%
Market Cap56.80B
Analysts81.74
Price Target735.06 (0.75%)
Short Float %2.01%
Short Ratio2.56
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)26.89%
Min EPS beat(2)8.51%
Max EPS beat(2)45.27%
EPS beat(4)4
Avg EPS beat(4)21.86%
Min EPS beat(4)8.51%
Max EPS beat(4)45.27%
EPS beat(8)8
Avg EPS beat(8)30.38%
EPS beat(12)12
Avg EPS beat(12)30.91%
EPS beat(16)16
Avg EPS beat(16)61.69%
Revenue beat(2)1
Avg Revenue beat(2)0.49%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)1.38%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)3.29%
Revenue beat(8)7
Avg Revenue beat(8)2.16%
Revenue beat(12)11
Avg Revenue beat(12)3.99%
Revenue beat(16)15
Avg Revenue beat(16)6.08%
PT rev (1m)8.35%
PT rev (3m)8.36%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)1.18%
EPS NY rev (1m)1.21%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.88%
Valuation
Industry RankSector Rank
PE 118.83
Fwd PE 93.22
P/S 21.15
P/FCF 156.65
P/OCF 126.21
P/B 22.22
P/tB 34.82
EV/EBITDA 500.44
EPS(TTM)6.14
EY0.84%
EPS(NY)7.83
Fwd EY1.07%
FCF(TTM)4.66
FCFY0.64%
OCF(TTM)5.78
OCFY0.79%
SpS34.5
BVpS32.83
TBVpS20.95
PEG (NY)16.16
PEG (5Y)2.87
Profitability
Industry RankSector Rank
ROA 7.64%
ROE 18.19%
ROCE 1.15%
ROIC 0.91%
ROICexc 1.81%
ROICexgc 2.96%
OM 2.03%
PM (TTM) 17.31%
GM 59.83%
FCFM 13.5%
ROA(3y)6.22%
ROA(5y)2.99%
ROE(3y)12.87%
ROE(5y)6.54%
ROIC(3y)3.12%
ROIC(5y)N/A
ROICexc(3y)5.69%
ROICexc(5y)N/A
ROICexgc(3y)6.38%
ROICexgc(5y)N/A
ROCE(3y)3.94%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score3
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.53
Debt/EBITDA 15.6
Cap/Depr 155.29%
Cap/Sales 3.26%
Interest Coverage 250
Cash Conversion 406.32%
Profit Quality 77.97%
Current Ratio 2.83
Quick Ratio 2.62
Altman-Z 10.87
F-Score3
WACC10.31%
ROIC/WACC0.09
Cap/Depr(3y)192.5%
Cap/Depr(5y)286.11%
Cap/Sales(3y)4.12%
Cap/Sales(5y)5.78%
Profit Quality(3y)94.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)39.55%
EPS 3Y36.34%
EPS 5Y41.41%
EPS Q2Q%22.61%
EPS Next Y7.35%
EPS Next 2Y15.38%
EPS Next 3Y15.98%
EPS Next 5YN/A
Revenue 1Y (TTM)59.79%
Revenue growth 3Y34.11%
Revenue growth 5Y31.44%
Sales Q2Q%31.01%
Revenue Next Year28.07%
Revenue Next 2Y25.41%
Revenue Next 3Y23.13%
Revenue Next 5Y19.5%
EBIT growth 1Y-64.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year92.63%
EBIT Next 3Y47.68%
EBIT Next 5YN/A
FCF growth 1Y314.57%
FCF growth 3Y64.36%
FCF growth 5Y46.2%
OCF growth 1Y233.18%
OCF growth 3Y48.58%
OCF growth 5Y44.12%