AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXS - BMG0692U1099 - Common Stock
99.09 USD
+0.52 (+0.53%)
99.09 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AXS. AXS was compared to 147 industry peers in the Insurance industry. While AXS is still in line with the averages on profitability rating, there are concerns on its financial health. AXS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AXS had positive earnings in the past year.
In the past year AXS has reported a negative 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 decent Return On Assets value of 2.86%, AXS is doing good in the industry, outperforming 61.22% of the companies in the same industry.
AXS's Return On Equity of 15.43% is fine compared to the rest of the industry. AXS outperforms 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.99%, AXS is in line with its industry, outperforming 46.94% 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 significantly below the industry average of 14.90%.
The last Return On Invested Capital (1.99%) for AXS is above the 3 year average (1.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 15.43% | ||
| ROIC | 1.99% |
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's Profit Margin of 15.56% is fine compared to the rest of the industry. AXS outperforms 78.91% of its industry peers.
In the last couple of years the Profit Margin of AXS has grown nicely.
AXS has a Operating Margin of 13.58%. This is comparable to the rest of the industry: AXS outperforms 57.82% of its industry peers.
AXS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.58% | ||
| PM (TTM) | 15.56% | ||
| 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.
The debt/assets ratio for AXS has been reduced compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.21 indicates that AXS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.21, AXS is in the better half of the industry, outperforming 68.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.25
WACC8.08%
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 nice 13.72% over the past year.
The Earnings Per Share has been growing by 34.71% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.64% in the past year.
AXS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
EPS 1Y (TTM)13.72%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%19.93%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%9.47%
3.2 Future
Based on estimates for the next years, AXS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.00% on average per year.
Based on estimates for the next years, AXS will show a small growth in Revenue. The Revenue will grow by 7.54% on average per year.
EPS Next Y14.78%
EPS Next 2Y8.96%
EPS Next 3Y9%
EPS Next 5YN/A
Revenue Next Year7.88%
Revenue Next 2Y8.26%
Revenue Next 3Y7.54%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.81 indicates a rather cheap valuation of AXS.
AXS's Price/Earnings ratio is a bit cheaper when compared to the industry. AXS is cheaper than 72.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, AXS is valued rather cheaply.
AXS is valuated cheaply with a Price/Forward Earnings ratio of 7.47.
Based on the Price/Forward Earnings ratio, AXS is valued a bit cheaper than the industry average as 72.79% of the companies are valued more expensively.
AXS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
AXS's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
AXS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.53
PEG (5Y)0.23
EPS Next 2Y8.96%
EPS Next 3Y9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, AXS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.48, AXS has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.31, 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
17.93% of the earnings are spent on dividend by AXS. This is a low number and sustainable payout ratio.
The dividend of AXS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.93%
EPS Next 2Y8.96%
EPS Next 3Y9%
99.09
+0.52 (+0.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.98%
Inst Owner Change-4.91%
Ins Owners0.62%
Ins Owner Change-0.26%
Market Cap7.63B
Revenue(TTM)6.31B
Net Income(TTM)982.67M
Analysts78.67
Price Target118.52 (19.61%)
Short Float %1.12%
Short Ratio1.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.16
Dividend Growth(5Y)0.21%
DP17.93%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.81%
Min EPS beat(2)10.34%
Max EPS beat(2)11.27%
EPS beat(4)4
Avg EPS beat(4)13.4%
Min EPS beat(4)10.34%
Max EPS beat(4)17.73%
EPS beat(8)8
Avg EPS beat(8)30.9%
EPS beat(12)12
Avg EPS beat(12)25.37%
EPS beat(16)15
Avg EPS beat(16)19.84%
Revenue beat(2)0
Avg Revenue beat(2)-5.88%
Min Revenue beat(2)-10.52%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-5.09%
Min Revenue beat(4)-10.52%
Max Revenue beat(4)-1.24%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)5
Avg Revenue beat(12)2.5%
Revenue beat(16)7
Avg Revenue beat(16)3.26%
PT rev (1m)0.75%
PT rev (3m)2.38%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)2.12%
EPS NY rev (3m)7.54%
Revenue NQ rev (1m)-1.79%
Revenue NQ rev (3m)3.86%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)3.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 7.47 | ||
| P/S | 1.21 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.2 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)12.68
EY12.8%
EPS(NY)13.27
Fwd EY13.4%
FCF(TTM)-4.6
FCFYN/A
OCF(TTM)-4.1
OCFYN/A
SpS81.96
BVpS82.65
TBVpS79.6
PEG (NY)0.53
PEG (5Y)0.23
Graham Number153.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 15.43% | ||
| ROCE | 2.52% | ||
| ROIC | 1.99% | ||
| ROICexc | 2.04% | ||
| ROICexgc | 4.04% | ||
| OM | 13.58% | ||
| PM (TTM) | 15.56% | ||
| 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%
ROICexgc growth 3Y15.11%
ROICexgc 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-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 71.81% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 13.66 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.08%
ROIC/WACC0.25
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)13.72%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%19.93%
EPS Next Y14.78%
EPS Next 2Y8.96%
EPS Next 3Y9%
EPS Next 5YN/A
Revenue 1Y (TTM)5.64%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%9.47%
Revenue Next Year7.88%
Revenue Next 2Y8.26%
Revenue Next 3Y7.54%
Revenue Next 5YN/A
EBIT growth 1Y9.02%
EBIT growth 3Y13.92%
EBIT growth 5Y18.58%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-150.93%
FCF growth 3Y19.31%
FCF growth 5Y68.16%
OCF growth 1Y-143.58%
OCF growth 3Y18.28%
OCF growth 5Y56.11%
AXIS CAPITAL HOLDINGS LTD / AXS FAQ
What is the ChartMill fundamental rating of AXIS CAPITAL HOLDINGS LTD (AXS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AXS.
What is the valuation status of AXIS CAPITAL HOLDINGS LTD (AXS) stock?
ChartMill assigns a valuation rating of 6 / 10 to AXIS CAPITAL HOLDINGS LTD (AXS). This can be considered as Fairly Valued.
What is the profitability of AXS stock?
AXIS CAPITAL HOLDINGS LTD (AXS) has a profitability rating of 5 / 10.
What is the valuation of AXIS CAPITAL HOLDINGS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AXIS CAPITAL HOLDINGS LTD (AXS) is 7.81 and the Price/Book (PB) ratio is 1.2.
What is the expected EPS growth for AXIS CAPITAL HOLDINGS LTD (AXS) stock?
The Earnings per Share (EPS) of AXIS CAPITAL HOLDINGS LTD (AXS) is expected to grow by 14.78% in the next year.