Axis Capital (AXS) AI Stock Analysis

• Market Cap: $7.23B
• Dividend Yield: 1.93%
• Average Volume (3M): 750.78K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.40
• Revenue Growth: 6.87%
• EPS Growth: 43.53%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 3.29
• Shares Outstanding: 78,173,980
• 10 Day Avg. Volume: 723,228
• 30 Day Avg. Volume: 750,782
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 6.04
• Enterprise Value/Ebitda: 9.08
• 1Y Price Target: $118.43
• Price Target Upside: 29.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $108.00 ▲(18.50% Upside)

Axis Capital's overall score reflects strong financial performance and positive earnings call highlights, tempered by technical analysis indicating neutral momentum and cash flow challenges. The company's undervaluation and dividend yield add to its attractiveness.

Positive Factors

Strong Insurance Segment Growth

The robust growth in the insurance segment indicates strong market demand and effective sales strategies, which can drive long-term revenue and profitability.

Investment Income Growth

Increased investment income enhances financial flexibility and supports future growth initiatives, contributing to a more resilient business model.

AI and Technology Investments

Investments in AI and technology improve operational efficiency and decision-making, providing a competitive edge in underwriting and risk assessment.

Negative Factors

Challenges in Property Insurance

Stagnant growth and rate reductions in property insurance could pressure margins and limit revenue potential in this segment over the medium term.

Cyber Portfolio Reshaping

Reshaping the cyber portfolio suggests challenges in adapting to evolving risks, which may impact growth and profitability in this high-demand area.

Cautious Reinsurance Stance

A cautious approach in reinsurance due to unfavorable ceding commissions could limit growth opportunities and affect the segment's contribution to overall performance.

Axis Capital Business Overview & Revenue Model

Company Description

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers property insurance products for commercial buildings, residential premises, construction projects, and onshore energy installations; marine insurance products covering offshore energy, cargo, liability, recreational marine, fine art, specie, and hull war; and terrorism, aviation, credit and political risk, and liability insurance products. It also provides professional insurance products that cover directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers. In addition, this segment offers accidental death, travel, and specialty health products for employer and affinity groups. The Reinsurance segment offers reinsurance products to insurance companies, including catastrophe reinsurance products; property reinsurance products covering property damage and related losses resulting from natural and man-made perils; professional lines; credit and surety; and motor liability products. This segment also provides agriculture reinsurance products; coverages for various types of construction risks and risks related to erection, testing, and commissioning of machinery and plants during the construction stage; marine and aviation reinsurance products; and personal accident, specialty health, accidental death, travel, life and disability reinsurance products. The company was founded in 2001 and is headquartered in Pembroke, Bermuda.

How the Company Makes Money

Axis Capital generates revenue primarily through the underwriting of insurance and reinsurance policies. The company makes money by collecting premiums from policyholders, which are then invested to generate additional income. Its key revenue streams include direct insurance premiums, reinsurance premiums, and investment income. The company also benefits from a diversified portfolio, which allows it to manage risk effectively and optimize returns. Significant partnerships with brokers and agencies enhance its distribution capabilities, while its strong capital base enables it to underwrite large and complex risks, contributing to overall earnings.

Axis Capital Financial Statement Overview

Summary

Axis Capital demonstrates strong profitability and a solid balance sheet with manageable debt levels. However, recent cash flow challenges could present risks if not addressed. The company's continued revenue growth and stable equity position suggest resilience, but operational efficiency improvements may be necessary to enhance cash flow performance.

Income Statement

Axis Capital's income statement reveals strong profitability with a Gross Profit Margin of 81.96% and a Net Profit Margin of 14.38% for TTM. There is a notable Revenue Growth Rate of 4.05% from 2024 to TTM, indicating steady growth. However, EBIT and EBITDA margins show some inconsistencies over the years, which could point to operational challenges or fluctuating costs.

Balance Sheet

The balance sheet reflects a stable financial position with a low Debt-to-Equity Ratio of 0.17 and a high Return on Equity of 14.44% for TTM. The Equity Ratio is 18.08%, which suggests a reasonable reliance on equity. Despite this, the changes in Total Debt and Stockholders' Equity over the years indicate some financial restructuring.

Cash Flow

The cash flow analysis shows a challenging scenario with negative Free Cash Flow growth of -136.88% from 2024 to TTM, as well as a negative Operating Cash Flow to Net Income Ratio. However, the company demonstrates a strong Free Cash Flow to Net Income Ratio in previous periods, indicating past strength in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.15B	5.96B	5.62B	5.26B	5.32B	4.88B
Gross Profit	1.70B	5.95B	5.61B	5.12B	5.32B	4.84B
EBITDA	1.13B	1.08B	542.42M	374.56M	778.19M	11.71M
Net Income	891.79M	1.08B	376.29M	223.08M	618.61M	-120.42M
Balance Sheet
Total Assets	34.15B	32.52B	30.25B	27.60B	27.37B	25.88B
Cash, Cash Equivalents and Short-Term Investments	1.41B	6.92B	5.31B	4.95B	13.19B	13.11B
Total Debt	106.54M	1.49B	1.52B	1.50B	1.43B	1.45B
Total Liabilities	27.98B	26.43B	24.99B	22.96B	21.96B	20.58B
Stockholders Equity	6.17B	6.09B	5.26B	4.64B	5.41B	5.30B
Cash Flow
Free Cash Flow	-680.51M	1.84B	1.26B	655.39M	1.08B	298.84M
Operating Cash Flow	-680.51M	1.84B	1.26B	692.22M	1.11B	343.50M
Investing Cash Flow	968.42M	280.45M	-855.61M	-655.80M	-1.11B	489.92M
Financing Cash Flow	-815.22M	-417.29M	-202.37M	-149.62M	-186.09M	-908.80M

Axis Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXS, the sentiment is Negative. The current price of 91.14 is below the 20-day moving average (MA) of 94.55, below the 50-day MA of 95.78, and below the 200-day MA of 95.52, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 37.41 is Neutral, neither overbought nor oversold. The STOCH value of 17.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXS.

Axis Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	76 Outperform	$6.24B	11.48	19.23%	2.06%	4.47%	102.98%
AXS	74 Outperform	$7.23B	8.77	15.07%	1.93%	6.87%	43.53%
RLI	74 Outperform	$5.62B	16.02	19.49%	4.27%	3.72%	-16.23%
SIGI	74 Outperform	$4.66B	11.79	12.22%	1.99%	10.81%	―
KNSL	72 Outperform	$10.56B	22.27	28.73%	0.16%	18.13%	15.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTM	65 Neutral	$4.90B	24.08	4.47%	0.05%	8.08%	-57.76%

Axis Capital Corporate Events

Axis Capital Announces New CFO Appointment

On August 14, 2025, AXIS Capital Holdings Limited announced that Matthew Kirk will become the new Chief Financial Officer effective March 31, 2026, succeeding Peter Vogt. Kirk, who joins from Enstar Group Limited, will initially serve as a special advisor to the CEO before assuming the CFO role. This transition is part of AXIS’s ongoing transformation into a specialty underwriting leader, with Kirk expected to contribute to the company’s growth and strategic goals. Peter Vogt will remain as a strategic advisor until the end of 2026 to ensure a smooth transition.

The most recent analyst rating on (AXS) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Axis Capital stock, see the AXS Stock Forecast page.

AXIS Capital Reports Strong Q2 2025 Earnings Growth

AXIS Capital Holdings Limited is a global specialty underwriter and provider of insurance and reinsurance solutions, operating in sectors such as insurance and reinsurance with a strong presence in Bermuda, the United States, Europe, Singapore, and Canada. In its latest earnings report for the second quarter of 2025, AXIS Capital reported a net income of $216 million available to common shareholders, translating to $2.72 per diluted common share, and an operating income of $261 million, or $3.29 per diluted common share. The company achieved an annualized return on average common equity of 15.7% and an operating return of 19.0%, alongside a combined ratio of 88.9%. Book value per diluted common share increased by 18.6% compared to the previous year. Key highlights include a record profitability with a significant 18.6% growth in diluted book value per share over the prior year, and a strong performance in the insurance segment with an 85.3% combined ratio. The reinsurance segment also contributed positively with a 92% combined ratio. AXIS Capital’s strategic focus on technology and AI through its ‘How We Work’ program has supported its sustained profitable growth. Looking ahead, AXIS Capital remains committed to advancing its strategic initiatives and providing value to customers and the broader market, as expressed by its management.

AXIS Capital’s Earnings Call: Record Growth Amid Challenges

AXIS Capital Holdings recently held its earnings call, showcasing a strong performance with record achievements in several key financial metrics. The overall sentiment was positive, driven by significant growth in the insurance segment, despite some challenges in the reinsurance sector and competitive pressures in property and cyber insurance lines.