Axis Auto Finance Inc (AXIS) AI Stock Analysis

• Market Cap: $606.87K
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -7.52%
• EPS Growth: 31.32%
• Country: CA
• Employees: 82
• Sector: Financial
• Sector Strength: 86
• Industry: Credit Finance
• EPS (TTM): -0.16
• Shares Outstanding: 121,374,170
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.07
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Axis Auto Finance Inc's financial health is concerning, with significant leverage, declining revenues, and negative profitability margins, which heavily impact its stock score. Although the company demonstrates strong cash flow generation, the negative P/E ratio and lack of technical analysis indicators or earnings call data further weigh down the valuation and outlook, resulting in a low overall stock score.

Axis Auto Finance Inc Business Overview & Revenue Model

Company Description

Axis Auto Finance Inc (AXIS) is a financial services company that operates within the automotive lending sector, primarily focusing on providing non-prime vehicle financing solutions. The company caters to a segment of the population that may not qualify for traditional bank loans, offering them flexible and accessible auto financing options. Axis Auto Finance Inc positions itself as a leader in the Canadian non-prime auto finance market, leveraging its expertise to serve dealerships and consumers across Canada.

How the Company Makes Money

Axis Auto Finance Inc makes money through its core business of providing non-prime automotive financing. The company generates revenue by offering auto loans to consumers who do not qualify for prime credit terms, typically due to lower credit scores or limited credit history. These loans often come with higher interest rates, thus providing Axis with a significant margin on the funds lent. The company partners with automobile dealerships to offer its financing products, which helps in expanding its customer base and increasing loan originations. Additionally, Axis may earn fees associated with loan servicing and management. Key factors contributing to its earnings include the volume of loans originated, the interest rate environment, and the company's ability to effectively manage credit risk.

Axis Auto Finance Inc Financial Statement Overview

Summary

Axis Auto Finance Inc faces significant financial challenges with declining revenues, high leverage, and negative profitability margins. Despite this, strong operating cash flow is a positive indicator amidst other financial challenges.

Income Statement

Axis Auto Finance Inc has experienced declining revenue with a negative growth rate. The company has been struggling with profitability, as shown by negative EBIT and Net Income margins, indicating operational inefficiencies and potential challenges in managing costs.

Balance Sheet

The company exhibits a high debt-to-equity ratio, indicating significant leverage and potential financial risk. Stockholders' equity has diminished substantially over the years, and the return on equity is negative, reflecting poor returns for investors. The low equity ratio suggests the company is heavily reliant on debt financing.

Cash Flow

Despite negative net income, Axis Auto Finance Inc demonstrates strong operating cash flow, suggesting effective cash management. The free cash flow has improved significantly, though the free cash flow to net income ratio is skewed due to negative earnings. The company's ability to generate cash from operations is a positive indicator amidst other financial challenges.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
38.84M	40.60M	40.16M	38.37M	37.20M
	Gross Profit
12.14M	14.91M	20.40M	28.98M	15.48M
	EBIT
-12.01M	6.84M	2.17M	3.55M	-473.71K
	EBITDA
-12.31M	8.35M	3.73M	5.05M	863.27K
	Net Income Common Stockholders
-23.16M	-26.18M	1.48M	2.32M	-674.85K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.76M	2.68M	1.48M	3.45M	6.37M
	Total Assets
173.17M	218.55M	187.00M	155.84M	153.99M
	Total Debt
165.83M	185.62M	131.49M	112.48M	114.68M
	Net Debt
161.07M	182.94M	130.01M	109.04M	108.30M
	Total Liabilities
171.88M	194.33M	137.58M	119.76M	120.80M
	Stockholders Equity
1.30M	24.21M	49.42M	36.09M	33.18M
Cash Flow		Free Cash Flow
18.74M	-49.48M	-31.21M	-2.24M	-2.14M
	Operating Cash Flow
19.18M	-48.79M	-29.95M	-1.31M	-767.36K
	Investing Cash Flow
-435.40K	-693.19K	-1.27M	-1.68M	-1.37M
	Financing Cash Flow
-20.67M	53.89M	28.64M	-3.25M	530.92K

Axis Auto Finance Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSY	76 Outperform	$2.55B	9.66	25.28%	3.05%	21.86%	12.85%
Sector *	64 Neutral	$12.52B	9.82	7.95%	16985.69%	12.70%	-4.60%
ECN	58 Neutral	C$801.26M	―	3.65%	1.40%	49.43%	99.91%
MOGO	56 Neutral	$40.13M	―	-16.02%	―	9.80%	21.30%
AXIS	36 Underperform	$606.87K	―	-1785.40%	―	-7.52%	31.32%

Axis Auto Finance Inc Corporate Events

Axis Auto Finance Sells Business and Faces Delisting

Axis Auto Finance Inc. has completed the sale of its auto finance business for approximately $78 million. The proceeds will be used to repay senior debt and fund redemption payments for convertible debentures. With no remaining active business, Axis is expected to be delisted from the Toronto Stock Exchange.

Axis Auto Finance Secures Key Approvals at Meeting

Axis Auto Finance Inc. announced the successful approval of all proposals at its Annual General and Special Meeting, including the election of director nominees and a significant transaction with Fionic. Shareholders also authorized the board to proceed with the company’s potential dissolution, reflecting a pivotal moment for Axis in the financial landscape.

Axis Auto Finance Files Credit Agreement Details

Axis Auto Finance Inc. has filed a credit agreement and amendments for its senior funding facility with the Ontario Securities Commission. The company provides alternative used vehicle financing to non-prime borrowers, helping improve their credit scores. A portion of proceeds from an upcoming transaction may be used to repay the facility.

Axis Auto Finance Sees Profits in Q1 2025

Axis Auto Finance Inc. reported a significant turnaround in Q1 2025, achieving a net income of $1.8 million compared to a loss in the same period last year. Despite a decline in revenues and origination volumes, the company saw a notable improvement in adjusted earnings due to strategic asset sales.