AXIS CAPITAL HOLDINGS LTD (AXS)
BMG0692U1099 - Common Stock
Overall AXS gets a fundamental rating of 5 out of 10. We evaluated AXS against 141 industry peers in the Insurance industry. There are concerns on the financial health of AXS while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on AXS.
1. Profitability
1.1 Basic Checks
In the past year AXS was profitable.
In the past year AXS had a positive cash flow from operations.
AXS had positive earnings in 4 of the past 5 years.
AXS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.88%, AXS perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
AXS's Return On Equity of 10.12% is in line compared to the rest of the industry. AXS outperforms 47.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.91%, AXS is in line with its industry, outperforming 50.00% of the companies in the same industry.
AXS had an Average Return On Invested Capital over the past 3 years of 1.37%. This is below the industry average of 4.38%.
The last Return On Invested Capital (1.91%) for AXS is above the 3 year average (1.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 10.12% | ||
| ROIC | 1.91% |
ROA(3y)1.33%
ROA(5y)0.9%
ROE(3y)7.2%
ROE(5y)4.77%
ROIC(3y)1.37%
ROIC(5y)1.13%
1.3 Margins
AXS has a Profit Margin of 10.30%. This is in the better half of the industry: AXS outperforms 61.43% of its industry peers.
In the last couple of years the Profit Margin of AXS has grown nicely.
AXS has a Operating Margin (13.15%) which is comparable to the rest of the industry.
AXS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.15% | ||
| PM (TTM) | 10.3% | ||
| GM | N/A |
OM growth 3Y137.31%
OM growth 5Y31.37%
PM growth 3YN/A
PM growth 5Y279.04%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AXS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AXS has more shares outstanding than it did 1 year ago.
AXS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AXS has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of AXS is 0.74, which is an excellent value as it means it would take AXS, only 0.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.74, AXS is in the better half of the industry, outperforming 72.14% of the companies in the same industry.
AXS has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.22, AXS is doing good in the industry, outperforming 69.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | N/A |
ROIC/WACC0.23
WACC8.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.99% over the past year.
The Earnings Per Share has been growing by 38.66% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 6.21% in the past year.
Measured over the past years, AXS shows a small growth in Revenue. The Revenue has been growing by 2.03% on average per year.
EPS 1Y (TTM)25.99%
EPS 3YN/A
EPS 5Y38.66%
EPS Q2Q%15.81%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y5.22%
Revenue growth 5Y2.03%
Sales Q2Q%26.72%
3.2 Future
AXS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.49% yearly.
Based on estimates for the next years, AXS will show a quite strong growth in Revenue. The Revenue will grow by 8.12% on average per year.
EPS Next Y10.09%
EPS Next 2Y8.68%
EPS Next 3Y8.49%
EPS Next 5YN/A
Revenue Next Year9.24%
Revenue Next 2Y8.2%
Revenue Next 3Y8.12%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.07, the valuation of AXS can be described as reasonable.
AXS's Price/Earnings ratio is a bit cheaper when compared to the industry. AXS is cheaper than 72.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. AXS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.75, the valuation of AXS can be described as very cheap.
AXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXS is cheaper than 76.43% of the companies in the same industry.
AXS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXS indicates a somewhat cheap valuation: AXS is cheaper than 60.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AXS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.26 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.8
PEG (5Y)0.21
EPS Next 2Y8.68%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, AXS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.24, AXS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, AXS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of AXS has a limited annual growth rate of 0.49%.
AXS has been paying a dividend for at least 10 years, so it has a reliable track record.
AXS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.49%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
AXS pays out 29.75% of its income as dividend. This is a sustainable payout ratio.
AXS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.75%
EPS Next 2Y8.68%
EPS Next 3Y8.49%
AXIS CAPITAL HOLDINGS LTD
NYSE:AXS (12/20/2024, 8:04:00 PM)
After market: 90.03 0 (0%)90.03
+2.42 (+2.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.5%
Inst Owner Change0.73%
Ins Owners4.6%
Ins Owner Change0%
Market Cap7.53B
Analysts76.92
Price Target99.81 (10.86%)
Short Float %1.49%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Dividend Growth(5Y)0.49%
DP29.75%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.75%
Min EPS beat(2)5.36%
Max EPS beat(2)12.13%
EPS beat(4)4
Avg EPS beat(4)48.41%
Min EPS beat(4)5.36%
Max EPS beat(4)170.18%
EPS beat(8)8
Avg EPS beat(8)31.36%
EPS beat(12)11
Avg EPS beat(12)21.99%
EPS beat(16)15
Avg EPS beat(16)35.59%
Revenue beat(2)1
Avg Revenue beat(2)-3.76%
Min Revenue beat(2)-9.72%
Max Revenue beat(2)2.19%
Revenue beat(4)3
Avg Revenue beat(4)4.48%
Min Revenue beat(4)-9.72%
Max Revenue beat(4)18.88%
Revenue beat(8)5
Avg Revenue beat(8)6.3%
Revenue beat(12)7
Avg Revenue beat(12)6.04%
Revenue beat(16)10
Avg Revenue beat(16)10.63%
PT rev (1m)3.32%
PT rev (3m)14.45%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-8.76%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)-8.59%
Revenue NQ rev (3m)9.63%
Revenue NY rev (1m)-2%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.75 | ||
| P/S | 1.26 | ||
| P/FCF | 4.26 | ||
| P/OCF | 4.19 | ||
| P/B | 1.24 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)11.15
EY12.38%
EPS(NY)11.62
Fwd EY12.91%
FCF(TTM)21.12
FCFY23.46%
OCF(TTM)21.46
OCFY23.84%
SpS71.44
BVpS72.71
TBVpS69.37
PEG (NY)0.8
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 10.12% | ||
| ROCE | 2.42% | ||
| ROIC | 1.91% | ||
| ROICexc | 1.97% | ||
| ROICexgc | 3.48% | ||
| OM | 13.15% | ||
| PM (TTM) | 10.3% | ||
| GM | N/A | ||
| FCFM | 29.56% |
ROA(3y)1.33%
ROA(5y)0.9%
ROE(3y)7.2%
ROE(5y)4.77%
ROIC(3y)1.37%
ROIC(5y)1.13%
ROICexc(3y)1.42%
ROICexc(5y)1.17%
ROICexgc(3y)2.44%
ROICexgc(5y)1.99%
ROCE(3y)1.73%
ROCE(5y)1.43%
ROICexcg growth 3Y145.45%
ROICexcg growth 5Y30.53%
ROICexc growth 3Y137.57%
ROICexc growth 5Y27.7%
OM growth 3Y137.31%
OM growth 5Y31.37%
PM growth 3YN/A
PM growth 5Y279.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.74 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 52.22% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 12.23 | ||
| Cash Conversion | 213.36% | ||
| Profit Quality | 287.11% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.41%
ROIC/WACC0.23
Cap/Depr(3y)50.95%
Cap/Depr(5y)60.94%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.83%
Profit Quality(3y)292.22%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.99%
EPS 3YN/A
EPS 5Y38.66%
EPS Q2Q%15.81%
EPS Next Y10.09%
EPS Next 2Y8.68%
EPS Next 3Y8.49%
EPS Next 5YN/A
Revenue 1Y (TTM)6.21%
Revenue growth 3Y5.22%
Revenue growth 5Y2.03%
Sales Q2Q%26.72%
Revenue Next Year9.24%
Revenue Next 2Y8.2%
Revenue Next 3Y8.12%
Revenue Next 5YN/A
EBIT growth 1Y-7.49%
EBIT growth 3Y149.7%
EBIT growth 5Y34.04%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y78.7%
FCF growth 3Y60.02%
FCF growth 5YN/A
OCF growth 1Y75.76%
OCF growth 3Y54.04%
OCF growth 5Y158.87%