Axis Capital (AXS) AI Stock Analysis

• Market Cap: $7.85B
• Dividend Yield: 1.76%
• Average Volume (3M): 703.98K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.45
• Revenue Growth: 6.76%
• EPS Growth: 54.56%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 83
• Industry: Insurance - Property & Casualty
• EPS (TTM): 3.17
• Shares Outstanding: 78,653,175
• 10 Day Avg. Volume: 646,594
• 30 Day Avg. Volume: 703,982
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.73
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $112.88
• Price Target Upside: 12.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Axis Capital's strong profitability, efficient cash flow management, and undervalued stock position it as a favorable choice in the insurance industry. Positive technical indicators and strategic corporate actions further support its high stock score, despite some challenges highlighted in the earnings call.

Positive Factors

Earnings Performance

AXIS’s 1Q25 result exceeded forecast due to lower catastrophe losses, better expense ratios, and favorable prior-year development.

Expense Management

Axis has already achieved more than 50% of its 2026 expense target, suggesting potential material upside to 2026 EPS.

Stock Buybacks

AXIS repurchased $440mn of its shares, ahead of the forecast of $247mn.

Negative Factors

Growth Sustainability

There is caution on the direction of pricing and its ability to sustain growth and its improved loss ratios.

Insurance Pricing Environment

Insurance pricing trends and social inflationary forces could drive offsetting loss ratio deterioration.

Premium Growth

For the shares to continue to re-rate higher premium growth needs to improve.

Axis Capital Business Overview & Revenue Model

Company Description

Axis Capital Holdings Limited (AXS) is a global provider of specialty lines insurance and treaty reinsurance, with a focus on delivering risk transfer products and services to clients worldwide. Headquartered in Bermuda, the company operates through two main segments: Insurance and Reinsurance. The Insurance segment provides property, marine, terrorism, aviation, credit and political risk, professional lines, and liability insurance. The Reinsurance segment offers treaty reinsurance to a range of insurance companies, with products covering catastrophe, property, professional lines, credit and surety, and other specialty reinsurance.

How the Company Makes Money

Axis Capital makes money primarily through the underwriting of insurance and reinsurance policies, collecting premiums from clients in exchange for assuming risk. Its revenue model is centered around two primary streams: Insurance and Reinsurance. The Insurance segment generates income by offering various specialty insurance products directly to businesses and individuals, focusing on high-margin, niche markets. The Reinsurance segment earns revenue by providing other insurance companies with risk mitigation services, allowing them to manage their exposure to large losses. In addition to underwriting income, Axis Capital also derives revenue from investment activities, where it manages and invests the premiums collected until claims are paid out. Strategic partnerships and a strong focus on risk management also play a significant role in enhancing the company's financial performance, allowing it to maintain a robust capital position and competitive edge in the insurance and reinsurance markets.

Axis Capital Financial Statement Overview

Summary

Axis Capital exhibits robust financial health characterized by strong profitability, effective cost management, and excellent cash flow generation. The income statement and cash flow show significant growth and efficiency, though the balance sheet's missing 2024 data poses some limitations.

Income Statement

Axis Capital demonstrates strong profitability with a significant gross profit margin averaging around 99% and a robust net profit margin increasing from 6.4% in 2023 to 18.2% in 2024. Revenue growth is healthy at approximately 6.1% from 2023 to 2024, indicating positive business momentum. The company also showcases high EBIT and EBITDA margins, reflecting efficient operations and cost management. However, fluctuations in past profitability metrics suggest some historical volatility.

Balance Sheet

Axis Capital maintains a sound equity position with a solid equity ratio of around 17.4% in 2023. The debt-to-equity ratio is low at 0.29, indicating prudent financial leverage. However, the 2024 balance sheet lacks reported stockholders' equity and liabilities data, which limits a complete analysis. Historically, the balance sheet shows consistent asset growth, though equity volatility in recent years could pose potential risks.

Cash Flow

The company displays impressive cash flow performance with a strong free cash flow growth rate of 46.9% from 2023 to 2024. Operating cash flow significantly exceeds net income, indicating excellent cash generation ability. The free cash flow to net income ratio is highly favorable, suggesting the company's capacity to generate cash far exceeds its reported earnings. Axis Capital's effective cash management strategies are a notable strength.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.96B	5.62B	5.14B	5.32B	4.84B
	Gross Profit
5.95B	5.61B	5.12B	5.32B	4.84B
	EBIT
1.08B	4.95B	365.64M	657.70M	-124.66M
	EBITDA
1.08B	542.42M	374.56M	778.19M	11.71M
	Net Income Common Stockholders
1.08B	376.29M	223.08M	618.61M	-116.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.92B	5.31B	12.15B	13.19B	13.11B
	Total Assets
32.52B	30.25B	27.60B	27.37B	25.88B
	Total Debt
1.49B	1.52B	1.50B	1.43B	1.45B
	Net Debt
-655.30M	569.13M	744.86M	585.89M	547.13M
	Total Liabilities
26.43B	24.99B	22.96B	21.96B	20.58B
	Stockholders Equity
6.09B	5.26B	4.64B	5.41B	5.30B
Cash Flow		Free Cash Flow
1.84B	1.26B	655.39M	1.08B	298.84M
	Operating Cash Flow
1.84B	1.26B	692.22M	1.11B	343.50M
	Investing Cash Flow
280.45M	-855.61M	-655.80M	-1.11B	489.92M
	Financing Cash Flow
-417.29M	-202.37M	-149.62M	-186.09M	-908.80M

Axis Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXS, the sentiment is Positive. The current price of 100.04 is above the 20-day moving average (MA) of 95.79, above the 50-day MA of 95.28, and above the 200-day MA of 85.86, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 86.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXS.

Axis Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXS	82 Outperform	$7.85B	9.75	15.43%	1.76%	6.76%	54.56%
THG	81 Outperform	$6.12B	14.19	15.74%	2.10%	3.09%	168.29%
RLI	76 Outperform	$6.85B	24.47	17.99%	0.78%	9.18%	-16.06%
SIGI	74 Outperform	$5.41B	24.21	7.48%	1.64%	13.37%	-35.09%
WTM	67 Neutral	$4.58B	19.89	0.61%	0.06%	2.48%	-54.02%
AFG	66 Neutral	$10.87B	12.21	20.33%	2.39%	3.92%	―
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%

Axis Capital Corporate Events

AXIS Capital Completes Major Loss Portfolio Transfer

On April 24, 2025, AXIS Capital Holdings Limited completed a significant loss portfolio transfer transaction with Enstar Group Limited, covering reinsurance segment reserves primarily related to casualty portfolios from 2021 and prior years. The transaction, involving a $3.1 billion reinsurance segment reserve, was structured as a 75% quota share, with AXIS retroceding $2.3 billion to Enstar’s subsidiary, Cavello Bay Reinsurance Limited. This strategic move, following regulatory approvals, is expected to enhance AXIS’s operational focus and financial positioning in the reinsurance industry.

Spark’s Take on AXS Stock

According to Spark, TipRanks’ AI Analyst, AXS is a Outperform.

Axis Capital’s strong financial performance, particularly in cash flow and profitability, combined with positive earnings call guidance, underpin a high stock score. The technical indicators offer a stable outlook, and the valuation suggests the stock is undervalued, adding to its attractiveness. The absence of significant corporate events or detracting factors contributes to a favorable overall evaluation.

To see Spark’s full report on AXS stock, click here.

Axis Capital Announces Resignation of Key Officer

On April 16, 2025, Axis Capital Holdings Limited announced the resignation of Kent Ziegler as Global Corporate Controller and principal accounting officer, effective May 1, 2025. His departure was amicable and not due to any disagreements with the company’s operations or policies. The company has initiated a search for his successor, and in the interim, CFO Peter Vogt will assume the role of principal accounting officer without additional compensation.

Spark’s Take on AXS Stock

According to Spark, TipRanks’ AI Analyst, AXS is a Outperform.

Axis Capital’s overall score reflects its strong financial performance, effective cash management, and strategic initiatives. Key strengths include robust profitability and efficient operations, while technical indicators and valuation further support a positive outlook. The earnings call and corporate events bolster the company’s strategic positioning in the insurance industry.

To see Spark’s full report on AXS stock, click here.