AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
USA - NYSE:AXS - BMG0692U1099 - Common Stock
94.35 USD
-1.62 (-1.69%)
94.35 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AXS. AXS was compared to 146 industry peers in the Insurance industry. AXS has a medium profitability rating, but doesn't score so well on its financial health evaluation. AXS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AXS had positive earnings in the past year.
AXS had a negative operating cash flow in the past year.
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
AXS's Return On Assets of 2.52% is fine compared to the rest of the industry. AXS outperforms 60.96% of its industry peers.
Looking at the Return On Equity, with a value of 13.95%, AXS is in the better half of the industry, outperforming 69.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.82%, AXS is in the better half of the industry, outperforming 60.96% of the companies in the same industry.
AXS had an Average Return On Invested Capital over the past 3 years of 1.54%. This is below the industry average of 4.47%.
The last Return On Invested Capital (2.82%) for AXS is above the 3 year average (1.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 13.95% | ||
| ROIC | 2.82% |
ROA(3y)1.69%
ROA(5y)1.33%
ROE(3y)9.33%
ROE(5y)7.21%
ROIC(3y)1.54%
ROIC(5y)1.36%
1.3 Margins
AXS has a Profit Margin of 13.79%. This is in the better half of the industry: AXS outperforms 78.08% of its industry peers.
In the last couple of years the Profit Margin of AXS has grown nicely.
With a decent Operating Margin value of 19.40%, AXS is doing good in the industry, outperforming 73.97% of the companies in the same industry.
AXS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.4% | ||
| PM (TTM) | 13.79% | ||
| GM | N/A |
OM growth 3Y9.71%
OM growth 5Y15.36%
PM growth 3Y16.87%
PM growth 5Y26.54%
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.
Compared to 1 year ago, AXS has less shares outstanding
The number of shares outstanding for AXS has been reduced compared to 5 years ago.
AXS has a better debt/assets ratio than last year.
2.2 Solvency
AXS has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
AXS's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. AXS outperforms 67.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC7.96%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.62%, which is quite good.
The Earnings Per Share has been growing by 34.71% on average over the past years. This is a very strong growth
Looking at the last year, AXS shows a small growth in Revenue. The Revenue has grown by 7.73% in the last year.
Measured over the past years, AXS shows a small growth in Revenue. The Revenue has been growing by 2.79% on average per year.
EPS 1Y (TTM)12.62%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%12.29%
Revenue 1Y (TTM)7.73%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%3.92%
3.2 Future
AXS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.70% yearly.
The Revenue is expected to grow by 7.19% on average over the next years.
EPS Next Y6.73%
EPS Next 2Y6.41%
EPS Next 3Y7.7%
EPS Next 5YN/A
Revenue Next Year4.63%
Revenue Next 2Y6.96%
Revenue Next 3Y7.19%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AXS is valuated cheaply with a Price/Earnings ratio of 7.77.
Based on the Price/Earnings ratio, AXS is valued a bit cheaper than 75.34% of the companies in the same industry.
AXS is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.45, which indicates a rather cheap valuation of AXS.
AXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXS is cheaper than 72.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, AXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXS is valued a bit cheaper than 71.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AXS may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)0.22
EPS Next 2Y6.41%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
AXS has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, AXS has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, AXS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of AXS has a limited annual growth rate of 0.21%.
AXS has paid a dividend for at least 10 years, which is 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)0.21%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
AXS pays out 20.76% of its income as dividend. This is a sustainable payout ratio.
The dividend of AXS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.76%
EPS Next 2Y6.41%
EPS Next 3Y7.7%
94.35
-1.62 (-1.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners98.63%
Inst Owner Change-1.07%
Ins Owners0.63%
Ins Owner Change-0.38%
Market Cap7.38B
Analysts77.14
Price Target115.77 (22.7%)
Short Float %1.63%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.16
Dividend Growth(5Y)0.21%
DP20.76%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.5%
Min EPS beat(2)11.27%
Max EPS beat(2)17.73%
EPS beat(4)4
Avg EPS beat(4)12.15%
Min EPS beat(4)5.36%
Max EPS beat(4)17.73%
EPS beat(8)8
Avg EPS beat(8)31.74%
EPS beat(12)11
Avg EPS beat(12)19.06%
EPS beat(16)15
Avg EPS beat(16)25.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-4.78%
Min Revenue beat(4)-9.72%
Max Revenue beat(4)-0.82%
Revenue beat(8)3
Avg Revenue beat(8)0.63%
Revenue beat(12)6
Avg Revenue beat(12)4.58%
Revenue beat(16)8
Avg Revenue beat(16)6.8%
PT rev (1m)0%
PT rev (3m)0.22%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)3.46%
EPS NY rev (3m)3.93%
Revenue NQ rev (1m)-2.47%
Revenue NQ rev (3m)-5.76%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 7.45 | ||
| P/S | 1.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.19 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 6.29 |
EPS(TTM)12.14
EY12.87%
EPS(NY)12.66
Fwd EY13.42%
FCF(TTM)-5.51
FCFYN/A
OCF(TTM)-5.15
OCFYN/A
SpS79.9
BVpS78.99
TBVpS75.95
PEG (NY)1.16
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 13.95% | ||
| ROCE | 3.57% | ||
| ROIC | 2.82% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 5.91% | ||
| OM | 19.4% | ||
| PM (TTM) | 13.79% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)1.69%
ROA(5y)1.33%
ROE(3y)9.33%
ROE(5y)7.21%
ROIC(3y)1.54%
ROIC(5y)1.36%
ROICexc(3y)1.66%
ROICexc(5y)1.45%
ROICexgc(3y)3.05%
ROICexgc(5y)2.57%
ROCE(3y)1.95%
ROCE(5y)1.72%
ROICexcg growth 3Y15.11%
ROICexcg growth 5Y17.13%
ROICexc growth 3Y10.27%
ROICexc growth 5Y13.84%
OM growth 3Y9.71%
OM growth 5Y15.36%
PM growth 3Y16.87%
PM growth 5Y26.54%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 50.85% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 19.14 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.96%
ROIC/WACC0.35
Cap/Depr(3y)42.19%
Cap/Depr(5y)50.45%
Cap/Sales(3y)0.52%
Cap/Sales(5y)0.64%
Profit Quality(3y)289.19%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.62%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%12.29%
EPS Next Y6.73%
EPS Next 2Y6.41%
EPS Next 3Y7.7%
EPS Next 5YN/A
Revenue 1Y (TTM)7.73%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%3.92%
Revenue Next Year4.63%
Revenue Next 2Y6.96%
Revenue Next 3Y7.19%
Revenue Next 5YN/A
EBIT growth 1Y85.05%
EBIT growth 3Y13.92%
EBIT growth 5Y18.58%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-157.22%
FCF growth 3Y19.31%
FCF growth 5Y68.16%
OCF growth 1Y-151.64%
OCF growth 3Y18.28%
OCF growth 5Y56.11%