Axos Financial (AX)
NYSE:AX
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Axos Financial
(NYSE:AX)
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Rating:66Neutral
Price Target:
$101.00
▲(9.19% Upside)
Action:DowngradedDate:03/24/26
The score is driven by solid underlying financial performance and a supportive earnings outlook (loan/deposit momentum and accretive acquisition), partially offset by weaker cash-flow consistency and some balance-sheet data uncertainty. Technicals are the main drag, with clear bearish trend signals despite oversold readings. Valuation helps due to the low P/E, though no dividend yield reduces support.
Positive Factors
Digital-first, diversified banking model
A digital-first distribution platform combined with consumer, mortgage, C&I, CRE and securities/wealth channels creates durable scale and low branch opex. This multi-division model diversifies revenue sources and supports long-term fee and spread generation across rate cycles.
Negative Factors
Inconsistent cash conversion
Declining TTM free cash flow growth and uneven operating cash conversion reduce internal funding reliability for lending and investments. Over 2–6 months this makes the company more sensitive to funding/expense execution and limits optionality versus peers with steadier FCF.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital-first, diversified banking model
A digital-first distribution platform combined with consumer, mortgage, C&I, CRE and securities/wealth channels creates durable scale and low branch opex. This multi-division model diversifies revenue sources and supports long-term fee and spread generation across rate cycles.
Read all positive factors
Axos Financial (AX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.31B
Dividend YieldN/A
Average Volume (3M)412.01K
Price to Earnings (P/E)9.5
Beta (1Y)1.12
Revenue Growth1.66%
EPS Growth-9.31%
CountryUS
Employees1,781
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.22
Shares Outstanding56,678,250
10 Day Avg. Volume388,227
30 Day Avg. Volume412,014
Financial Highlights & Ratios
PEG Ratio-3.72
Price to Book (P/B)1.61
Price to Sales (P/S)2.24
P/FCF Ratio9.91
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.68
Enterprise Value/Gross Profit4.28
Enterprise Value/Ebitda7.92
Forecast
1Y Price Target
$109.40Price Target Upside18.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)8.7
Revenue Forecast (FY)$1.47B
Axos Financial Business Overview & Revenue Model
Company Description
Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through Banking Business and Securities Business segments. The company offers deposits products, including cons...
How the Company Makes Money
Axos Financial primarily earns money through banking spread income and fee-based financial services. (1) Net interest income: The core earnings driver is the difference between interest income earned on loans and investment securities and the inte...
Axos Financial Key Performance Indicators (KPIs)
Axos Financial Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
Overall the call conveyed strong growth and profitability momentum: robust linked-quarter loan growth, healthy loan pipeline, meaningful deposit inflows, higher net interest income and fee income (including Verdant contributions), improved credit metrics and strong returns (ROE and ROA). Headwinds include higher non-interest expenses (partly related to the Verdant acquisition and a one-time accrual), an increase in provisions driven by commercial loan growth, and expected modest NIM compression as one-time accretion wanes and seasonality/timing effects persist. On balance the company's operational and credit strength, diversified growth channels, and accretive acquisition of Verdant outweigh the near-term expense and NIM headwinds.Positive Updates
Strong Quarterly Loan Growth
$1.0 billion net loan growth linked quarter with broad-based expansion across single-family mortgage warehouse, commercial specialty real estate, equipment finance, and fund finance; entering January with ~ $800 million higher starting loan balances and expecting $600–$800 million loan growth this quarter.
Negative Updates
Higher Non-Interest Expense
Non-interest expenses rose to ~$184.6 million for the quarter from $156.3 million in the prior quarter. Verdant-related incremental costs included ~ $7.8 million in salaries/benefits and ~$14.8 million in depreciation & amortization. A one-time ~$7 million G&A accrual (Core Clearing matter) also contributed to the increase.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Loan Growth
$1.0 billion net loan growth linked quarter with broad-based expansion across single-family mortgage warehouse, commercial specialty real estate, equipment finance, and fund finance; entering January with ~ $800 million higher starting loan balances and expecting $600–$800 million loan growth this quarter.
Read all positive updates
Company Guidance
Management guided to continued strong loan growth — targeting low-to-mid‑teens annual growth, expecting to add roughly $600–$800 million this quarter (they entered January with ~ $800 million of incremental starting loan balances) and noted a $2.2 billion pipeline as of Jan. 23 (≈ $598M single‑family jumbo, $75M gain‑on‑sale, $200M multifamily/small balance commercial, $82M auto/consumer, $1.2B commercial); Verdant is expected to add ~ $150M of loan balance per quarter and deliver EPS accretion at the mid‑to‑high end of the initial 2–3% FY26 guide and 5–6% in FY27. On margin and income, reported NIM was 4.94% (normalized ~4.72% excluding FDIC accretion/securitization impacts) and management conservatively assumes a ~5–6 bps reduction in adjusted margin (to ~4.66%); FDIC purchase‑loan accretion is expected to contribute ~10–15 bps to NIM going forward, with regular signature accretion ~ $6.5M/quarter (after a one‑time $9M in Dec that reduced future scheduled accretion by ~ $2.5M) and a March calendar effect of ~2% lower net interest income. Funding and expense guidance: deposits were $23.2B (up 44.3% linked quarter, 16.5% YoY; 96% in demand/MM/savings up 17% YoY; avg non‑interest‑bearing deposits ~$3.5B vs $3.0B prior; $460M partner‑bank OOB deposits), and management aims to keep salaries & benefits plus professional services expense growth at or below 30% of revenue growth.Axos Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.00B | 1.93B | 1.77B | 1.26B | 757.91M | 711.97M |
| Gross Profit | 1.25B | 1.19B | 1.04B | 865.93M | 681.59M | 609.10M |
| EBITDA | 675.36M | 642.41M | 662.57M | 455.13M | 364.56M | 336.19M |
| Net Income | 456.63M | 432.91M | 450.01M | 307.17M | 240.72M | 215.71M |
Balance Sheet | ||||||
| Total Assets | 28.20B | 24.78B | 22.86B | 20.35B | 17.46B | 14.27B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 2.00B | 2.12B | 2.47B | 1.47B | 902.96M |
| Total Debt | 1.12B | 372.67M | 415.68M | 451.78M | 562.74M | 574.86M |
| Total Liabilities | 25.27B | 22.10B | 20.56B | 18.43B | 15.81B | 12.86B |
| Stockholders Equity | 2.93B | 2.68B | 2.29B | 1.92B | 1.64B | 1.40B |
Cash Flow | ||||||
| Free Cash Flow | 421.39M | 436.12M | 269.52M | 166.49M | 195.12M | 402.14M |
| Operating Cash Flow | 479.57M | 490.33M | 305.48M | 196.71M | 216.62M | 412.58M |
| Investing Cash Flow | -4.94B | -1.84B | -2.59B | -2.40B | -2.78B | -866.77M |
| Financing Cash Flow | 3.13B | 1.34B | 2.09B | 3.01B | 3.10B | -458.56M |
Axos Financial Technical Analysis
Positive
92.50
Price Trends
90.47
Positive
88.70
Positive
86.69
Positive
Market Momentum
0.73
Negative
62.94
Neutral
81.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AX, the sentiment is Positive. The current price of 92.5 is above the 20-day moving average (MA) of 85.82, above the 50-day MA of 90.47, and above the 200-day MA of 86.69, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 62.94 is Neutral, neither overbought nor oversold. The STOCH value of 81.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AX.
Axos Financial Risk Analysis
Axos Financial disclosed 50 risk factors in its most recent earnings report. Axos Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Axos Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.46B | 16.86 | 14.16% | 2.42% | 12.90% | 16.92% | |
71 Outperform | $5.62B | 12.33 | 10.41% | 1.02% | 2.20% | 20.88% | |
70 Outperform | $5.49B | 10.54 | 11.06% | 2.74% | -0.78% | 25.39% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $5.31B | 9.54 | 16.59% | ― | 1.66% | -9.31% | |
63 Neutral | $5.42B | 11.17 | 6.10% | 3.83% | 43.53% | -21.74% | |
48 Neutral | $5.84B | -29.54 | -2.18% | 0.31% | -18.33% | 92.89% |
* Financial Sector Average
AX
Axos Financial
92.50
35.26
61.60%
ABCB
Ameris Bancorp
82.86
32.02
62.97%
FFIN
First Financial Bankshares
31.16
0.58
1.88%
HWC
Hancock Whitney
67.23
22.01
48.66%
FLG
Flagstar Financial
14.04
4.13
41.70%
AUB
Atlantic Union Bankshares
38.03
15.19
66.49%
Axos Financial Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Axos Financial Gains Approval for Strategic Deposit Acquisition
Positive
Mar 23, 2026
Axos Bank, a subsidiary of Axos Financial, Inc., received approval on March 19, 2026, from the Office of the Comptroller of the Currency for a planned deposit acquisition previously outlined in a February 12, 2026, regulatory filing. The company e...
Business Operations and StrategyM&A Transactions
Axos Financial to Acquire Jenius Bank Consumer Deposits
Positive
Feb 12, 2026
On February 12, 2026, Axos Bank entered into an agreement with SMBC MANUBANK to acquire approximately $2.6 billion of U.S. consumer deposits from Jenius Bank, SMBC’s digital banking division. Under the deal, Axos will receive cash equal to t...
Business Operations and StrategyFinancial Disclosures
Axos Financial Highlights Strong Growth and Diversified Banking Model
Positive
Feb 2, 2026
On February 2, 2026, Axos Financial released an investor presentation highlighting its diversified three-division business model and strong operating performance heading into calendar 2026. The company reported that for its fiscal second quarter 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.