AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
NYSE:AXS - New York Stock Exchange, Inc. - BMG0692U1099 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AXS. AXS was compared to 144 industry peers in the Insurance industry. Both the profitability and the financial health of AXS get a neutral evaluation. Nothing too spectacular is happening here. AXS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AXS was profitable.
AXS had a positive operating cash flow in the past year.
AXS had positive earnings in 4 of the past 5 years.
In the past 5 years AXS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.56%, AXS is in line with its industry, outperforming 58.33% of the companies in the same industry.
AXS has a better Return On Equity (14.40%) than 70.14% of its industry peers.
The Return On Invested Capital of AXS (2.61%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AXS is below the industry average of 4.07%.
The last Return On Invested Capital (2.61%) for AXS is above the 3 year average (1.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 14.4% | ||
| ROIC | 2.61% |
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
Looking at the Profit Margin, with a value of 14.00%, AXS is in the better half of the industry, outperforming 78.47% of the companies in the same industry.
In the last couple of years the Profit Margin of AXS has grown nicely.
Looking at the Operating Margin, with a value of 17.91%, AXS is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
AXS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.91% | ||
| PM (TTM) | 14% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXS is destroying value.
Compared to 1 year ago, AXS has less shares outstanding
AXS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AXS has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of AXS is 0.75, which is an excellent value as it means it would take AXS, only 0.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.75, AXS is in the better half of the industry, outperforming 73.61% 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.
AXS has a better Debt to Equity ratio (0.22) than 70.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | N/A |
ROIC/WACC0.28
WACC9.26%
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 16.87% 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 6.07% 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)16.87%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%23.35%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%-39.34%
3.2 Future
The Earnings Per Share is expected to grow by 7.50% on average over the next years.
AXS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.12% yearly.
EPS Next Y3.36%
EPS Next 2Y6.03%
EPS Next 3Y7.5%
EPS Next 5YN/A
Revenue Next Year4.61%
Revenue Next 2Y7.45%
Revenue Next 3Y5.12%
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
The Price/Earnings ratio is 8.70, which indicates a very decent valuation of AXS.
Based on the Price/Earnings ratio, AXS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.21. AXS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.15, the valuation of AXS can be described as very reasonable.
AXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXS is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, AXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
AXS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AXS is cheaper than 75.69% of the companies in the same industry.
72.22% of the companies in the same industry are more expensive than AXS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.6 | ||
| EV/EBITDA | 5.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AXS may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)0.25
EPS Next 2Y6.03%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.71%, AXS has a reasonable but not impressive dividend return.
AXS's Dividend Yield is comparable with the industry average which is at 3.51.
AXS's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
AXS pays out 21.34% 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.
DP21.34%
EPS Next 2Y6.03%
EPS Next 3Y7.5%
102.44
-1.38 (-1.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.56%
Inst Owner Change-1.69%
Ins Owners0.62%
Ins Owner Change2.29%
Market Cap8.06B
Analysts77.14
Price Target115.52 (12.77%)
Short Float %2.26%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend2.16
Dividend Growth(5Y)0.21%
DP21.34%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.98%
Min EPS beat(2)14.24%
Max EPS beat(2)17.73%
EPS beat(4)4
Avg EPS beat(4)12.37%
Min EPS beat(4)5.36%
Max EPS beat(4)17.73%
EPS beat(8)8
Avg EPS beat(8)31.99%
EPS beat(12)11
Avg EPS beat(12)19.2%
EPS beat(16)15
Avg EPS beat(16)27.12%
Revenue beat(2)0
Avg Revenue beat(2)-23.86%
Min Revenue beat(2)-42.06%
Max Revenue beat(2)-5.65%
Revenue beat(4)1
Avg Revenue beat(4)-13.81%
Min Revenue beat(4)-42.06%
Max Revenue beat(4)2.19%
Revenue beat(8)4
Avg Revenue beat(8)-3.22%
Revenue beat(12)6
Avg Revenue beat(12)0.7%
Revenue beat(16)9
Avg Revenue beat(16)5.4%
PT rev (1m)1%
PT rev (3m)4.98%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)0.64%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)-1.31%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)-3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.15 | ||
| P/S | 1.33 | ||
| P/FCF | 4.6 | ||
| P/OCF | 4.55 | ||
| P/B | 1.36 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)11.78
EY11.5%
EPS(NY)12.57
Fwd EY12.27%
FCF(TTM)22.29
FCFY21.76%
OCF(TTM)22.5
OCFY21.97%
SpS77.23
BVpS75.05
TBVpS72
PEG (NY)2.59
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 14.4% | ||
| ROCE | 3.3% | ||
| ROIC | 2.61% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 5.44% | ||
| OM | 17.91% | ||
| PM (TTM) | 14% | ||
| GM | N/A | ||
| FCFM | 28.86% |
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-Score9
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 30.02% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 17.06 | ||
| Cash Conversion | 154.86% | ||
| Profit Quality | 206.23% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC9.26%
ROIC/WACC0.28
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)16.87%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%23.35%
EPS Next Y3.36%
EPS Next 2Y6.03%
EPS Next 3Y7.5%
EPS Next 5YN/A
Revenue 1Y (TTM)6.07%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%-39.34%
Revenue Next Year4.61%
Revenue Next 2Y7.45%
Revenue Next 3Y5.12%
Revenue Next 5YN/A
EBIT growth 1Y75.9%
EBIT growth 3Y13.92%
EBIT growth 5Y18.58%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y132.26%
FCF growth 3Y19.31%
FCF growth 5Y68.16%
OCF growth 1Y126.51%
OCF growth 3Y18.28%
OCF growth 5Y56.11%