AXIL Brands (AXIL) AI Stock Analysis

• Market Cap: $42.34M
• Dividend Yield: N/A
• Average Volume (3M): 21.43K
• Price to Earnings (P/E): 67.6
• Beta (1Y): 0.96
• Revenue Growth: -4.51%
• EPS Growth: -76.70%
• Country: US
• Employees: 14
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.04
• Shares Outstanding: 6,657,717
• 10 Day Avg. Volume: 15,380
• 30 Day Avg. Volume: 21,433
• 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: 0.87
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 25.28
• 1Y Price Target: $6.00
• Price Target Upside: -4.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: $6.00 ▼(-4.76% Downside)

AXIL's overall stock score is primarily impacted by its financial performance and technical analysis. The company's strong gross profit margins and low leverage are positive, but challenges in revenue growth and profitability weigh heavily. Technical indicators suggest bearish momentum, and the high P/E ratio raises concerns about overvaluation.

AXIL Brands Business Overview & Revenue Model

Company Description

AXIL Brands, Inc. engages in the manufacture, marketing, distribution, and sale of hair and skin care, and hearing protection and enhancement products in the United States, Canada, Europe, and Asia. It offers 3-part system starter kits, treat micro-activ3 treatment, boost biotin cellular complex, thicken thickening spray, mend deep hair repair masque, and prep cleanser shampoo products under Reviv3 brand. The company also provides earbuds, earmuffs, earplugs, and related accessories under AXIL brand. It serves business-to-business salon through its network of domestic and international distributors; and direct-to-consumer marketing programs through its ecommerce site and various third-party online platforms, as well as retail chains. The company was formerly known as Reviv3 Procare Company and changed its name to AXIL Brands, Inc. in February 2024. AXIL Brands, Inc. was incorporated in 2015 and is based in Alhambra, California.

How the Company Makes Money

AXIL generates revenue primarily through the sale of its diverse range of consumer products, which are marketed both directly to consumers and through various retail partnerships. The company employs a multi-channel distribution strategy that includes e-commerce platforms, brick-and-mortar stores, and collaborations with outdoor and sporting goods retailers. Key revenue streams include direct sales of hearing protection products, outdoor accessories, and lifestyle items, often supplemented by seasonal promotions and marketing campaigns. Additionally, strategic partnerships with retailers and online marketplaces enhance AXIL's market reach and visibility, contributing significantly to its sales performance.

AXIL Brands Financial Statement Overview

Summary

AXIL Brands demonstrates strong gross profit margins and low leverage, indicating a solid financial position. However, challenges in revenue growth and profitability, along with declining net profit margins and return on equity, highlight areas needing improvement. Cash flow generation has improved, but further enhancements are needed to optimize free cash flow conversion.

Income Statement

AXIL Brands has shown a mixed performance in its income statement. The company experienced a decline in revenue growth rate by 2.78% in the latest year, indicating challenges in maintaining sales momentum. However, the gross profit margin remains strong at approximately 71%, showcasing effective cost management. The net profit margin decreased to 3.26% from 7.28% the previous year, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet of AXIL Brands is relatively stable with a low debt-to-equity ratio of 0.078, indicating conservative leverage. The equity ratio stands at a healthy level, reflecting a strong equity base. However, the return on equity has decreased to 8.85% from 26.03% the previous year, pointing to reduced efficiency in generating returns from equity.

Cash Flow

AXIL Brands has shown improvement in cash flow metrics, with a significant increase in free cash flow growth rate by 36.84%. The operating cash flow to net income ratio is robust at 0.78, indicating good cash generation relative to net income. However, the free cash flow to net income ratio of 0.80 suggests room for improvement in converting income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.26M	26.26M	27.50M	23.52M	2.34M	1.63M
Gross Profit	18.64M	18.64M	20.19M	16.36M	1.49M	997.09K
EBITDA	1.46M	1.46M	1.92M	2.15M	-170.21K	-280.00K
Net Income	854.99K	854.99K	2.00M	1.82M	-182.90K	-297.75K
Balance Sheet
Total Assets	12.87M	12.87M	10.97M	10.17M	893.91K	1.26M
Cash, Cash Equivalents and Short-Term Investments	4.77M	4.77M	3.25M	4.83M	373.73K	496.94K
Total Debt	757.44K	757.44K	183.35K	278.20K	211.93K	296.90K
Total Liabilities	3.21M	3.21M	3.28M	3.50M	709.20K	917.12K
Stockholders Equity	9.66M	9.66M	7.70M	6.67M	184.71K	345.65K
Cash Flow
Free Cash Flow	1.59M	1.53M	-157.85K	2.85M	-126.06K	33.00K
Operating Cash Flow	1.93M	1.93M	2.68K	2.92M	-126.06K	48.41K
Investing Cash Flow	-394.30K	-394.30K	-160.53K	1.00M	0.00	-15.41K
Financing Cash Flow	-18.39K	-18.39K	-1.42M	540.05K	2.85K	54.91K

AXIL Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXIL, the sentiment is Negative. The current price of 6.3 is below the 20-day moving average (MA) of 6.40, below the 50-day MA of 7.21, and above the 200-day MA of 6.23, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 35.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXIL.

AXIL Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXIL	56 Neutral	$42.34M	67.60	9.85%	―	-4.51%	-76.70%
ZEPP	54 Neutral	$685.07M	-9.48	-30.10%	―	-18.94%	-197.82%
KOSS	49 Neutral	$49.17M	-54.16	-2.86%	―	2.93%	8.95%
WLDS	44 Neutral	$25.97M	-0.62	-204.12%	―	-9.05%	77.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%