AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
USA - NYSE:AXS - BMG0692U1099 - Common Stock
92.52 USD
+0.4 (+0.43%)
92.52 USD
0 (0%)
Taking everything into account, AXS scores 4 out of 10 in our fundamental rating. AXS was compared to 147 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AXS was profitable.
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
AXS has a Return On Assets (2.52%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 13.95%, AXS is doing good in the industry, outperforming 68.71% of the companies in the same industry.
AXS has a Return On Invested Capital of 1.91%. This is comparable to the rest of the industry: AXS outperforms 45.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AXS is below the industry average of 4.46%.
The 3 year average ROIC (1.54%) for AXS is below the current ROIC(1.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 13.95% | ||
| ROIC | 1.91% |
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 13.79%, AXS is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
In the last couple of years the Profit Margin of AXS has grown nicely.
AXS's Operating Margin of 13.13% is in line compared to the rest of the industry. AXS outperforms 59.18% of its industry peers.
In the last couple of years the Operating Margin of AXS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.13% | ||
| 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
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.
Compared to 1 year ago, AXS has an improved debt to assets ratio.
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 has a Debt to Equity ratio of 0.21. This is in the better half of the industry: AXS outperforms 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.24
WACC7.92%
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.
Measured over the past years, AXS shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.71% on average per year.
AXS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.73%.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.02% yearly.
AXS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.19% yearly.
EPS Next Y7.38%
EPS Next 2Y6.6%
EPS Next 3Y8.02%
EPS Next 5YN/A
Revenue Next Year4.63%
Revenue Next 2Y6.96%
Revenue Next 3Y7.19%
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 7.62 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 73.47% of the companies in the same industry.
AXS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
The Price/Forward Earnings ratio is 7.28, which indicates a rather cheap valuation of AXS.
Based on the Price/Forward Earnings ratio, AXS is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AXS to the average of the S&P500 Index (22.94), we can say AXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
AXS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.8 |
4.3 Compensation for Growth
AXS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)0.22
EPS Next 2Y6.6%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, AXS has a reasonable but not impressive dividend return.
AXS's Dividend Yield is comparable with the industry average which is at 3.31.
Compared to an average S&P500 Dividend Yield of 2.36, AXS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of AXS has a limited annual growth rate of 0.21%.
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)0.21%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
20.76% of the earnings are spent on dividend by AXS. This is a low number and sustainable payout ratio.
AXS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.76%
EPS Next 2Y6.6%
EPS Next 3Y8.02%
92.52
+0.4 (+0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners98.97%
Inst Owner Change0.32%
Ins Owners0.61%
Ins Owner Change-0.38%
Market Cap7.23B
Analysts78.46
Price Target115.77 (25.13%)
Short Float %1.51%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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)0.33%
EPS NQ rev (1m)14.41%
EPS NQ rev (3m)15.31%
EPS NY rev (1m)0.61%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.28 | ||
| P/S | 1.16 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.17 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)12.14
EY13.12%
EPS(NY)12.7
Fwd EY13.73%
FCF(TTM)-5.51
FCFYN/A
OCF(TTM)-5.15
OCFYN/A
SpS79.9
BVpS78.99
TBVpS75.95
PEG (NY)1.03
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 13.95% | ||
| ROCE | 2.41% | ||
| ROIC | 1.91% | ||
| ROICexc | 1.96% | ||
| ROICexgc | 4% | ||
| OM | 13.13% | ||
| 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 | 1.5 | ||
| Cap/Depr | 50.85% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 12.95 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.92%
ROIC/WACC0.24
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 Y7.38%
EPS Next 2Y6.6%
EPS Next 3Y8.02%
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 1Y25.22%
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%