Now trading at a price of $646.0, Axon Enterprise has moved 1.5% so far today.
Axon Enterprise returned gains of 148.6% last year, with its stock price reaching a high of $698.67 and a low of $241.72. Over the same period, the stock outperformed the S&P 500 index by 120.4%. More recently, the company's 50-day average price was $530.64. Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. Based in Scottsdale, AZ, the Large-Cap Industrials company has 3,330 full time employees. Axon Enterprise has not offered a dividend during the last year.
Exceptional EPS Growth but Declining Revenues:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $420 | $531 | $681 | $863 | $1,190 | $343 |
| Operating Margins | 6% | -1% | -2% | -19% | 8% | 45% |
| Net Margins | 7% | 0% | 0% | -7% | 12% | 51% |
| Net Income (M) | $29 | $1 | -$2 | -$60 | $147 | $174 |
| Net Interest Expense (M) | $3 | $8 | $8 | $1 | $4 | $42 |
| Depreciation & Amort. (M) | $11 | $11 | $12 | $16 | $20 | $28 |
| Diluted Shares (M) | 58 | 60 | 62 | 66 | 73 | 75 |
| Earnings Per Share | $0.5 | $0.01 | -$0.03 | -$0.91 | $2.03 | $2.31 |
| EPS Growth | n/a | -98.0% | -400.0% | -2933.33% | 323.08% | 13.79% |
| Avg. Price | $51.33 | $60.8 | $89.5 | $163.31 | $120.44 | $646.87 |
| P/E Ratio | 98.71 | 6080.0 | -2983.33 | -179.46 | 58.18 | 275.26 |
| Free Cash Flow (M) | $53 | $50 | -$34 | $75 | $180 | $130 |
| CAPEX (M) | $11 | $16 | $73 | $50 | $56 | $60 |
| Current Ratio | 3.36 | 3.12 | 3.83 | 2.65 | 3.0 | 3.0 |
Axon Enterprise has strong operating margins with a positive growth rate and exceptional EPS growth. Additionally, the company's financial statements display an excellent current ratio of 3.0 and positive cash flows. Furthermore, Axon Enterprise has declining revenues and increasing reinvestment in the business.
Axon Enterprise's Valuation Is in Line With Its Sector Averages:
Axon Enterprise has a trailing twelve month P/E ratio of 138.9, compared to an average of 25.42 for the Industrials sector. Based on its EPS guidance of $6.2, the company has a forward P/E ratio of 85.6. Axon Enterprise's PEG ratio is 6.99 on the basis of the 19.9% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Axon Enterprise is likely overvalued compared to the book value of its equity, since its P/B ratio of 23.41 is higher than the sector average of 3.2. The company's shares are currently trading 1838.8% below their Graham number. Ultimately, Axon Enterprise's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Axon Enterprise Has an Average Rating of Buy:
The 13 analysts following Axon Enterprise have set target prices ranging from $385.0 to $800.0 per share, for an average of $594.23 with a buy rating. The company is trading 8.7% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Axon Enterprise has an average amount of shares sold short because 4.0% of the company's shares are sold short. Institutions own 81.1% of the company's shares, and the insider ownership rate stands at 4.72%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $5,278,128,788.
