A strong performer from today's morning trading session is Axis Capital, whose shares rose 2.7% to $57.13 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, Axis Capital has a trailing 12 month P/E ratio of 14.4 and a P/B ratio of 1.09.
When we divideAxis Capital's P/E ratio by its expected five-year EPS growth rate, we obtain a PEG ratio of 0.33, which indicates that the market is undervaluing the company's projected growth (a PEG ratio of 1 indicates a fairly valued company). Your analysis of the stock shouldn't end here. Rather, a good PEG ratio should alert you that it may be worthwhile to take a closer look at the stock.
The Business Runs With Low Debt Levels:
| 2018-02-28 | 2019-02-26 | 2020-02-27 | 2021-02-26 | 2022-02-25 | 2023-01-27 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $4,592 | $5,090 | $5,173 | $4,842 | $5,322 | $5,135 |
| Interest Income (MM) | -$55 | -$67 | -$68 | -$75 | -$62 | -$63 |
| Operating Margins | -2% | 6% | 8% | 1% | 13% | 4% |
| Net Margins | -8% | 1% | 6% | -2% | 12% | 4% |
| Net Income (MM) | -$369 | $43 | $323 | -$120 | $619 | $223 |
| Depreciation & Amort. (MM) | -$81 | -$182 | -$75 | -$66 | -$67 | -$68 |
| Earnings Per Share | -$4.14 | $0.0 | $3.35 | -$1.79 | $6.87 | $2.29 |
| EPS Growth | n/a | 100.0% | n/a | -153.43% | 483.8% | -66.67% |
| Diluted Shares (MM) | 100 | 84 | 84 | 84 | 86 | 84 |
| Long Term Debt (MM) | $1,377 | n/a | n/a | n/a | $1,311 | $1,394 |
