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Axos Financial (AX)
NYSE:AX
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Axos Financial
(NYSE:AX)
80Outperform
Positive Factors
Financial Performance
AX's 3Q FY25 numbers came in above Street estimates on the top and bottom line, as a stronger NIM, better fee income, and lower SG&A all were key ingredients in producing a good quarter.
Growth Potential
AX is viewed as a rare secular growth story in what is historically a cyclical business.
Shareholder Returns
AX resumed its share repurchase program in response to the recent market volatility, returning $58.3 million to shareholders.
Negative Factors
Market Volatility
Recent market volatility has prompted AX to resume its share repurchase program, indicating potential instability.
Valuation Concerns
Shares are trading at an FY26 P/E multiple of just 9.5x, suggesting that despite favorable risk-reward, there could be underlying valuation concerns compared to peers.
Axos Financial (AX) vs. S&P 500 (SPY)
Market Cap
$3.79B
Dividend YieldN/A
Average Volume (3M)427.22K
Price to Earnings (P/E)9.1
Beta (1Y)1.44
Revenue Growth15.93%
EPS Growth0.17%
CountryUS
Employees1,781
SectorFinancial
Sector Strength83
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.81
Shares Outstanding56,373,090
10 Day Avg. Volume348,206
30 Day Avg. Volume427,218
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market Cap0.54
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.90
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$81.80Price Target Upside21.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Axos Financial Business Overview & Revenue Model
Company DescriptionAxos Financial, Inc. is a financial services company based in the United States, primarily operating through its subsidiary, Axos Bank. The company offers a comprehensive range of banking products and services, including personal and business banking, lending solutions, and wealth management services. Axos Financial is known for its digital banking platform, which provides customers with convenient, secure, and efficient online and mobile banking experiences. The company's focus on technology-driven solutions allows it to serve a diverse clientele, including individuals, small businesses, and institutional clients.
How the Company Makes MoneyAxos Financial generates revenue primarily through interest income from loans, mortgages, and securities, as well as from non-interest income sources such as fees and service charges. The company's key revenue streams include interest earned on loans and leases, interest on investment securities, and fees from banking and wealth management services. Axos Financial benefits from its digital-first approach, which reduces operational costs and enhances profitability. Additionally, the company engages in partnerships and strategic collaborations with fintech firms to expand its service offerings and reach new customer segments, further contributing to its revenue growth.
Axos Financial Financial Statement Overview
Summary
Axos Financial demonstrates robust financial health with strong revenue growth, high profitability margins, and efficient cash flow management. The company operates with no debt, enhancing its financial stability. However, there is room to improve the equity ratio to further strengthen its balance sheet.Income Statement
Axos Financial shows strong profitability with a high gross profit margin of 96.15% and a net profit margin of 25.10% for TTM. Revenue growth is robust at 62.68% from 2023 to 2024, and EBIT and EBITDA margins are healthy at 52.34% and 38.45%, respectively, indicating solid operational efficiency.85
Very Positive
Balance Sheet
The company maintains a strong equity position with a debt-to-equity ratio of zero, reflecting no debt in TTM. The ROE is impressive at 17.15%, indicating efficient use of equity. The equity ratio stands at 10.64%, which could be improved to enhance financial stability against liabilities.78
Positive
Cash Flow
Axos Financial exhibits strong cash flow management with a significant free cash flow growth rate of 40.53% from 2023 to 2024. The operating cash flow to net income ratio is 0.92, showing a solid conversion of earnings into cash. Free cash flow to net income ratio is 0.88, indicating efficient cash generation relative to profits.80
Positive
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.06B | 890.18M | 705.34M | 632.85M | 572.39M | Gross Profit |
| 1.07B | 890.18M | 705.34M | 632.85M | 572.39M | EBIT |
| 563.63M | 431.74M | 392.53M | 305.74M | 262.63M | EBITDA |
| 570.17M | 455.13M | 375.45M | 340.46M | 297.62M | Net Income Common Stockholders |
| 450.01M | 307.17M | 240.72M | 215.71M | 183.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.12B | 2.47B | 1.47B | 902.96M | 1.94B | Total Assets |
| 22.86B | 20.35B | 17.46B | 14.27B | 13.85B | Total Debt |
| 415.68M | 451.78M | 562.74M | 574.86M | 478.29M | Net Debt |
| -1.56B | -1.78B | -639.84M | -140.77M | -1.28B | Total Liabilities |
| 20.56B | 18.43B | 15.81B | 12.86B | 12.62B | Stockholders Equity |
| 2.29B | 1.92B | 1.64B | 1.40B | 1.23B |
| Cash Flow | Free Cash Flow | |||
| 269.52M | 157.74M | 184.51M | 402.14M | 254.30M | Operating Cash Flow |
| 305.48M | 187.96M | 206.01M | 412.58M | 266.63M | Investing Cash Flow |
| -2.59B | -2.39B | -2.77B | -866.77M | -1.33B | Financing Cash Flow |
| 2.09B | 3.01B | 3.10B | -458.56M | 2.27B |
Axos Financial Technical Analysis
Positive
67.10
Price Trends
63.05
Positive
67.15
Negative
68.40
Negative
Market Momentum
1.28
Negative
63.00
Neutral
79.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AX, the sentiment is Positive. The current price of 67.1 is above the 20-day moving average (MA) of 62.28, above the 50-day MA of 63.05, and below the 200-day MA of 68.40, indicating a neutral trend. The MACD of 1.28 indicates Negative momentum. The RSI at 63.00 is Neutral, neither overbought nor oversold. The STOCH value of 79.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AX.
Axos Financial Risk Analysis
Axos Financial disclosed 43 risk factors in its most recent earnings report. Axos Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Axos Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.79B | 9.15 | 17.80% | ― | 15.93% | 0.17% | |
70 Neutral | $4.11B | 11.17 | 10.19% | 1.17% | 9.14% | 31.69% | |
69 Neutral | $4.01B | 18.27 | 14.14% | 1.50% | 2.59% | 7.66% | |
65 Neutral | $3.74B | 26.96 | 3.23% | 3.99% | 0.21% | -12.02% | |
64 Neutral | $3.76B | 13.32 | 7.30% | 4.64% | 26.09% | -19.05% | |
64 Neutral | $12.51B | 9.81 | 7.92% | 16985.69% | 12.67% | -5.98% | |
61 Neutral | $3.76B | 47.81 | 4.24% | 8.35% | 9.03% | 4.36% |
* Financial Sector Average
Performance Comparison
AX
Axos Financial
67.10
7.17
11.96%
ABCB
Ameris Bancorp
59.43
10.40
21.21%
ASB
Associated Banc-Corp
22.47
0.91
4.22%
BANF
BancFirst
121.04
30.72
34.01%
TFSL
TFS Financial
13.39
1.52
12.81%
AUB
Atlantic Union Bankshares
28.66
-3.95
-12.11%
Axos Financial Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q3-2025)
| % Change Since: 5.70%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
Axos Financial demonstrated solid loan growth and increases in key financial metrics such as book value per share and returns on equity and assets. However, challenges such as a decline in net interest margin and increased net charge-offs were noted. The company remains optimistic about growth opportunities, particularly in its securities business.Q3-2025 Updates
Positive Updates
Strong Net Loan Growth
Axos Financial generated over $700 million of net loan growth linked quarter, with fund finance, equipment leasing, and lender finance showing strong originations and net loan growth.
Increase in Book Value Per Share
The company reported a 19% year-over-year increase in book value per share.
High Returns on Equity and Assets
Axos Financial reported a 16% return on average common equity and a 1.8% return on average assets for the quarter.
Net Interest Income Growth
Net interest income for the quarter was $275 million, up 5.3% from the prior year period.
Improvement in Nonaccrual Loans
Total nonaccrual loans declined by $66.5 million linked quarter, improving the nonaccrual loans to total loan ratio from 1.26% to 89 basis points.
Securities Business Growth
Pre-tax income for the Securities business segment increased by 23.6% year-over-year to $9.1 million.
Negative Updates
Net Interest Margin Decline
Net interest margin was 4.78% for the quarter, down 5 basis points from the previous year.
Increase in Net Charge-Offs
Net annualized charge-offs to average loans increased to 9 basis points from 7 basis points in the previous year.
Loan Yield Pressure
Average loan yields for the quarter ended March 31, 2025, was 7.99%, down from 8.37% in the prior quarter.
Company Guidance
During the Axos Financial Third Quarter 2025 Earnings Call, the company reported several key financial metrics. Notably, the net loan growth was over $700 million for the quarter, with a stable net interest margin of 4.78%. The book value per share increased by 19% year-over-year, and the return on average common equity was 16%, with a return on average assets at 1.8%. Net interest income rose to $275 million, a 5.3% increase from the same period last year. The company also repurchased approximately $28 million of common stock during the quarter and an additional $30.3 million worth in April. Other highlights included a slight increase in noninterest expenses, which rose by only 0.6% from the previous quarter, and a decrease in total nonaccrual loans by $66.5 million, improving the nonaccrual loans to total loan ratio to 89 basis points. Axos also reported a net income of approximately $105.2 million, with a diluted EPS of $1.81. The company anticipates maintaining a consolidated net interest margin in the range of 4.25% to 4.35% and expects annual loan growth in the high single-digit to low teens range.Axos Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Axos Financial to Present New Investor Strategy
Positive
May 5, 2025
Axos Financial announced that it will use a new investor presentation at meetings starting May 6, 2025. The company highlights its strong performance metrics, including high return on equity and efficiency ratio, compared to peers. Axos is focused on sustained growth through diversified lending and deposit strategies, technology synergies, and new business initiatives. The company has demonstrated strong credit performance with low charge-off ratios and continues to expand its deposit base significantly, transforming its deposit mix over the years.
Spark’s Take on AX Stock
According to Spark, TipRanks’ AI Analyst, AX is a Outperform.
Axos Financial scores well due to its strong financial performance, marked by robust revenue growth and high profitability margins, further supported by a debt-free balance sheet. The technical analysis indicates upward price momentum, though caution is advised due to potential overbought conditions. The valuation appears attractive, with a low P/E ratio enhancing appeal, albeit without dividend yield. The earnings call provided positive insights into loan growth and returns, despite minor setbacks in net interest margin and charge-offs.
To see Spark’s full report on AX stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.