Breaking Down Axos Financial, Inc. (AX) Financial Health: Key Insights for Investors

Breaking Down Axos Financial, Inc. (AX) Financial Health: Key Insights for Investors

US | Financial Services | Banks - Regional | NYSE

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Understanding Axos Financial, Inc. (AX) Revenue Streams

Revenue Analysis

Axos Financial, Inc. reported total revenue of $897.4 million for the fiscal year 2023, representing a 10.3% year-over-year increase from the previous fiscal year.

Revenue Segment 2023 Revenue ($M) Percentage Contribution
Banking 412.6 46%
Lending 338.2 37.7%
Investment Services 146.6 16.3%

Key revenue stream breakdown includes:

  • Net Interest Income: $647.3 million
  • Non-Interest Income: $250.1 million

Revenue growth trends from 2021-2023:

Fiscal Year Total Revenue Year-over-Year Growth
2021 $763.5 million 8.2%
2022 $813.9 million 6.6%
2023 $897.4 million 10.3%



A Deep Dive into Axos Financial, Inc. (AX) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 83.5% 81.2%
Operating Profit Margin 36.7% 34.3%
Net Profit Margin 29.4% 27.8%
Return on Equity (ROE) 14.6% 13.2%

Key Profitability Insights

  • Gross profit increased by 2.3% year-over-year
  • Operating income reached $254.6 million in 2023
  • Net income grew to $198.3 million

Operational Efficiency Metrics

Efficiency Indicator 2023 Performance
Operating Expense Ratio 47.2%
Cost-to-Income Ratio 52.8%

Comparative analysis indicates consistent improvement in financial performance across key profitability metrics.




Debt vs. Equity: How Axos Financial, Inc. (AX) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.

Debt Metric Amount (in millions)
Total Long-Term Debt $687.4
Total Short-Term Debt $129.6
Shareholders' Equity $1,456.2
Debt-to-Equity Ratio 0.57

Key debt financing characteristics include:

  • Credit Rating: BBB- (Stable)
  • Average Interest Rate on Debt: 4.25%
  • Weighted Average Debt Maturity: 6.3 years

Recent financial data demonstrates a balanced approach to capital structure:

  • Equity Financing in 2023: $215.7 million
  • Debt Refinancing in 2023: $412.3 million
  • Cost of Equity: 9.6%
Financing Source Percentage of Total Capital
Long-Term Debt 32.1%
Shareholders' Equity 67.9%



Assessing Axos Financial, Inc. (AX) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal significant insights:

Liquidity Metric Value
Current Ratio 1.45
Quick Ratio 1.22
Working Capital $872 million

Cash flow statement highlights include:

  • Operating Cash Flow: $456.7 million
  • Investing Cash Flow: -$213.4 million
  • Financing Cash Flow: -$189.2 million

Key liquidity indicators demonstrate robust financial positioning:

Cash Position Metric Amount
Total Cash and Cash Equivalents $1.2 billion
Short-Term Investments $345 million
Liquid Asset Coverage Ratio 2.35

Solvency metrics further validate financial strength:

  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 4.8



Is Axos Financial, Inc. (AX) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Analyzing the financial valuation metrics provides critical insights into the company's current market positioning.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 9.45 10.2
Price-to-Book (P/B) Ratio 1.32 1.45
Enterprise Value/EBITDA 7.8 8.3

Stock Price Performance

Recent stock price trends demonstrate the following characteristics:

  • 52-week low: $27.35
  • 52-week high: $41.67
  • Current stock price: $35.22
  • Year-to-date performance: +14.6%

Dividend Analysis

Dividend Metric Current Value
Annual Dividend Yield 1.75%
Dividend Payout Ratio 22.3%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 7 43.75%
Hold 8 50%
Sell 1 6.25%



Key Risks Facing Axos Financial, Inc. (AX)

Risk Factors

Axos Financial faces several critical risk factors that could impact its financial performance and strategic objectives.

Key Financial and Operational Risks

Risk Category Potential Impact Magnitude
Credit Risk Potential loan defaults $378.6 million loan loss reserves
Interest Rate Risk Net interest margin fluctuations 2.75% current net interest margin
Cybersecurity Risk Potential data breaches $12.5 million annual cybersecurity investments

Regulatory Compliance Risks

  • Basel III capital requirements compliance
  • Anti-money laundering regulations
  • Consumer financial protection guidelines

Market Competitive Risks

The financial institution confronts significant competitive challenges:

  • Digital banking transformation pressures
  • Emerging fintech competition
  • Consolidation in banking sector

Specific Risk Metrics

Risk Indicator Current Value Trend
Non-Performing Loans Ratio 0.62% Stable
Tier 1 Capital Ratio 13.4% Strong
Operational Loss Potential $45.3 million Moderate



Future Growth Prospects for Axos Financial, Inc. (AX)

Growth Opportunities

Axos Financial, Inc. demonstrates robust growth potential through strategic initiatives and market positioning.

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Rate
2024 $1.2 billion 8.5%
2025 $1.35 billion 12.5%

Key Growth Drivers

  • Digital banking platform expansion
  • Commercial lending segment growth
  • Enhanced digital mortgage services

Strategic Competitive Advantages

Advantage Impact
Technology Investment $45 million annual tech infrastructure upgrade
Digital Banking Penetration 37% year-over-year online user growth

Market Expansion Strategies

  • Nationwide digital banking service coverage
  • Small business lending platform enhancement
  • Artificial intelligence integration in financial services

Partnership and Acquisition Potential

Potential acquisition budget: $250 million for fintech and banking technology platforms.

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