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AXON ENTERPRISE INC (AXON) Stock Fundamental Analysis

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

536.2  -36.2 (-6.32%)

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 an excellent financial health rating, but there are some minor concerns on its profitability. AXON is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

AXON had positive earnings in the past year.
AXON had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AXON reported negative net income in multiple years.
AXON had a positive operating cash flow in 4 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 0 100M -100M 200M

1.2 Ratios

The Return On Assets of AXON (10.79%) is better than 90.48% of its industry peers.
Looking at the Return On Equity, with a value of 20.59%, AXON belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
AXON has a Return On Invested Capital of 3.25%. This is in the lower half of the industry: AXON underperforms 63.49% of its industry peers.
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

With an excellent Profit Margin value of 18.01%, AXON belongs to the best of the industry, outperforming 93.65% of the companies in the same industry.
In the last couple of years the Profit Margin of AXON has grown nicely.
AXON has a Operating Margin (5.75%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AXON has grown nicely.
AXON has a better Gross Margin (59.14%) than 92.06% 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 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

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8

2. Health

2.1 Basic Checks

AXON has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for AXON. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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 15.17 indicates that AXON is not in any danger for bankruptcy at the moment.
AXON has a Altman-Z score of 15.17. This is amongst the best in the industry. AXON outperforms 93.65% of its industry peers.
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.
The Debt to FCF ratio of AXON (3.09) is better than 82.54% 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 Debt to Equity ratio of 0.32. This is in the better half of the industry: AXON outperforms 69.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 3.09
Altman-Z 15.17
ROIC/WACC0.35
WACC9.2%
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

A Current Ratio of 2.96 indicates that AXON has no problem at all paying its short term obligations.
AXON has a Current ratio of 2.96. This is in the better half of the industry: AXON outperforms 66.67% of its industry peers.
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.
AXON's Quick ratio of 2.63 is amongst the best of the industry. AXON outperforms 85.71% 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

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 42.37% over the past year.
The Earnings Per Share has been growing by 41.41% on average over the past years. This is a very strong growth
EPS 1Y (TTM)42.37%
EPS 3Y36.34%
EPS 5Y41.41%
EPS Q2Q%85.71%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%33.09%

3.2 Future

The Earnings Per Share is expected to grow by 16.58% 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 19.49% on average per year.
EPS Next Y9.58%
EPS Next 2Y16.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year23.15%
Revenue Next 2Y22.16%
Revenue Next 3Y20.47%
Revenue Next 5Y19.49%

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.
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 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6

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1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 91.19, AXON can be considered very expensive at the moment.
AXON's Price/Earnings ratio is a bit more expensive when compared to the industry. AXON is more expensive than 60.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of AXON to the average of the S&P500 Index (29.36), we can say AXON is valued expensively.
AXON is valuated quite expensively with a Price/Forward Earnings ratio of 83.22.
AXON's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AXON is more expensive than 60.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AXON to the average of the S&P500 Index (22.65), we can say AXON is valued expensively.
Industry RankSector Rank
PE 91.19
Fwd PE 83.22
AXON Price Earnings VS Forward Price EarningsAXON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AXON is valued a bit more expensive than 69.84% of the companies in the same industry.
AXON's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 185.73
EV/EBITDA 238.86
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.
AXON's earnings are expected to grow with 16.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.52
PEG (5Y)2.2
EPS Next 2Y16.58%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

AXON does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AXON ENTERPRISE INC

NASDAQ:AXON (2/27/2025, 10:23:41 AM)

536.2

-36.2 (-6.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-25 2025-02-25/amc
Earnings (Next)05-05 2025-05-05/amc
Inst Owners82.93%
Inst Owner ChangeN/A
Ins Owners0.58%
Ins Owner Change-10.15%
Market Cap40.89B
Analysts85
Price Target648.62 (20.97%)
Short Float %3.31%
Short Ratio2.95
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)8.65%
PT rev (3m)18.41%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0.26%
EPS NY rev (3m)7.26%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.73%
Valuation
Industry RankSector Rank
PE 91.19
Fwd PE 83.22
P/S 17.03
P/FCF 185.73
P/OCF 137.11
P/B 19.47
P/tB 23.91
EV/EBITDA 238.86
EPS(TTM)5.88
EY1.1%
EPS(NY)6.44
Fwd EY1.2%
FCF(TTM)2.89
FCFY0.54%
OCF(TTM)3.91
OCFY0.73%
SpS31.48
BVpS27.54
TBVpS22.42
PEG (NY)9.52
PEG (5Y)2.2
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 15.17
F-Score5
WACC9.2%
ROIC/WACC0.35
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)42.37%
EPS 3Y36.34%
EPS 5Y41.41%
EPS Q2Q%85.71%
EPS Next Y9.58%
EPS Next 2Y16.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%33.09%
Revenue Next Year23.15%
Revenue Next 2Y22.16%
Revenue Next 3Y20.47%
Revenue Next 5Y19.49%
EBIT growth 1Y2.57%
EBIT growth 3YN/A
EBIT growth 5Y44.18%
EBIT Next Year94.84%
EBIT Next 3Y46.68%
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%