AXIS CAPITAL HOLDINGS LTD (AXS) Stock Fundamental Analysis
NYSE:AXS - New York Stock Exchange, Inc. - BMG0692U1099 - Common Stock - Currency: USD
Overall AXS gets a fundamental rating of 5 out of 10. We evaluated AXS against 143 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AXS was profitable.
AXS had a positive operating cash flow in the past year.
Of the past 5 years AXS 4 years were profitable.
Of the past 5 years AXS 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.88%, AXS perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
The Return On Equity of AXS (10.12%) is comparable to the rest of the industry.
AXS has a Return On Invested Capital (1.91%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for AXS is below the industry average of 4.59%.
The last Return On Invested Capital (1.91%) for AXS is above the 3 year average (1.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 10.12% | ||
| 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
With a decent Profit Margin value of 10.30%, AXS is doing good in the industry, outperforming 61.70% of the companies in the same industry.
AXS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.15%, AXS is in line with its industry, outperforming 56.03% of the companies in the same 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 3Y9.7%
OM growth 5Y15.35%
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.
The number of shares outstanding for AXS has been reduced compared to 1 year ago.
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 to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of 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 72.34% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that AXS is not too dependend on debt financing.
AXS's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. AXS outperforms 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | N/A |
ROIC/WACC0.23
WACC8.39%
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 13.62% 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
AXS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.54%.
AXS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.79% yearly.
EPS 1Y (TTM)13.62%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%1.02%
Revenue 1Y (TTM)5.54%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%-17.27%
3.2 Future
AXS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.67% yearly.
The Revenue is expected to grow by 6.94% on average over the next years.
EPS Next Y-0.05%
EPS Next 2Y5.49%
EPS Next 3Y7.67%
EPS Next 5YN/A
Revenue Next Year8.65%
Revenue Next 2Y8.17%
Revenue Next 3Y6.94%
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
AXS is valuated reasonably with a Price/Earnings ratio of 8.29.
Compared to the rest of the industry, the Price/Earnings ratio of AXS indicates a somewhat cheap valuation: AXS is cheaper than 73.05% of the companies listed in the same industry.
AXS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.30.
With a Price/Forward Earnings ratio of 8.29, the valuation of AXS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXS indicates a somewhat cheap valuation: AXS is cheaper than 73.05% of the companies listed in the same industry.
AXS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 8.29 |
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 61.70% of the companies listed in the same industry.
74.47% 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 | 4.35 | ||
| EV/EBITDA | 9.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y5.49%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.93%, AXS has a reasonable but not impressive dividend return.
AXS's Dividend Yield is comparable with the industry average which is at 3.08.
AXS's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
The dividend of AXS has a limited annual growth rate of 0.49%.
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)0.49%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
29.75% 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.
DP29.75%
EPS Next 2Y5.49%
EPS Next 3Y7.67%
92.63
+1.13 (+1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.6%
Inst Owner Change2.01%
Ins Owners0.48%
Ins Owner Change3.43%
Market Cap7.69B
Analysts77.14
Price Target107.36 (15.9%)
Short Float %1.28%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend2.16
Dividend Growth(5Y)0.49%
DP29.75%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
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)-0.97%
PT rev (3m)11.12%
EPS NQ rev (1m)1.14%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)-4.35%
EPS NY rev (3m)-3.61%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-8.52%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 8.29 | ||
| P/S | 1.29 | ||
| P/FCF | 4.35 | ||
| P/OCF | 4.28 | ||
| P/B | 1.26 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 9.53 |
EPS(TTM)11.18
EY12.07%
EPS(NY)11.17
Fwd EY12.06%
FCF(TTM)21.29
FCFY22.98%
OCF(TTM)21.64
OCFY23.36%
SpS72.03
BVpS73.31
TBVpS69.94
PEG (NY)N/A
PEG (5Y)0.24
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)1.69%
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 3Y15.1%
ROICexcg growth 5Y17.12%
ROICexc growth 3Y10.25%
ROICexc growth 5Y13.83%
OM growth 3Y9.7%
OM growth 5Y15.35%
PM growth 3Y16.87%
PM growth 5Y26.54%
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
WACC8.39%
ROIC/WACC0.23
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.62%
EPS 3Y29.82%
EPS 5Y34.71%
EPS Q2Q%1.02%
EPS Next Y-0.05%
EPS Next 2Y5.49%
EPS Next 3Y7.67%
EPS Next 5YN/A
Revenue 1Y (TTM)5.54%
Revenue growth 3Y3.83%
Revenue growth 5Y2.79%
Sales Q2Q%-17.27%
Revenue Next Year8.65%
Revenue Next 2Y8.17%
Revenue Next 3Y6.94%
Revenue Next 5YN/A
EBIT growth 1Y-7.49%
EBIT growth 3Y13.91%
EBIT growth 5Y18.57%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y153.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y147.83%
OCF growth 3YN/A
OCF growth 5YN/A