Axos Financial (AX) AI Stock Analysis

• Market Cap: $5.13B
• Dividend Yield: N/A
• Average Volume (3M): 351.68K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.27
• Revenue Growth: 9.00%
• EPS Growth: -2.90%
• Country: US
• Employees: 1,781
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.92
• Shares Outstanding: 56,486,145
• 10 Day Avg. Volume: 340,053
• 30 Day Avg. Volume: 351,676
• PEG Ratio: -3.72
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 9.91
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 4.37
• 1Y Price Target: $99.40
• Price Target Upside: 7.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 81 Outperform
• Price Target: $106.00 ▲(14.97% Upside)

Axos Financial's strong technical indicators and attractive valuation are the most significant factors driving the score. The company's robust financial performance, despite recent revenue contraction, and positive earnings call sentiment further support the stock's favorable outlook.

Positive Factors

Financial Performance

AX closed out FY25 on a strong foot, beating Street estimates on the top and bottom line due to a combination of NIM upside and stronger fee income.

Growth Potential

The loan pipeline update was encouraging, with management noting that AX is well-positioned to organically grow loans towards the high end of targeted growth range.

Tax Efficiency

AX's unique corporate structure will actually reduce the burden on AX and further bolster EPS power and returns on capital.

Negative Factors

Market Volatility

AX resumed its share repurchase program in response to the recent market volatility, returning $58.3 million to shareholders.

Taxation Impact

The budget changes the taxation on financial institutions, moving California state tax on financial institutions to a single-factor apportionment based on revenue/income generated within the State.

Axos Financial Business Overview & Revenue Model

Company Description

Axos Financial, Inc. is a financial services company based in the United States that operates primarily through its subsidiary, Axos Bank. The company offers a range of banking products and services, including savings accounts, checking accounts, mortgages, personal loans, and commercial banking solutions. Axos Financial focuses on providing digital banking solutions, leveraging technology to enhance customer experience and streamline operations. The company serves a diverse clientele, including individual consumers, businesses, and institutional clients, and is known for its innovative approach to traditional banking.

How the Company Makes Money

Axos Financial generates revenue through several key streams. Primarily, the company earns interest income from loans, including personal loans, mortgages, and commercial lending. Additionally, Axos Bank generates non-interest income through various fees associated with banking services, such as account maintenance fees, transaction fees, and service charges. The company's digital platform allows it to operate with lower overhead costs compared to traditional banks, enhancing its profitability. Furthermore, Axos Financial engages in partnerships with fintech companies and other institutions to expand its product offerings and customer base, which contributes positively to its earnings. Overall, the combination of interest income and non-interest income forms the backbone of Axos Financial's revenue model.

Axos Financial Financial Statement Overview

Summary

Axos Financial demonstrates strong profitability and financial stability, with healthy margins and a solid balance sheet. While recent revenue contraction poses a risk, the company’s cash flow generation remains robust, supporting its financial health. Continued focus on revenue growth and cash flow management will be crucial for sustaining performance.

Income Statement

Axos Financial shows strong gross and net profit margins, indicating efficient operations and profitability. However, the recent revenue decline of 5.3% is a concern, contrasting with previous growth trends. The EBIT and EBITDA margins remain healthy, suggesting stable core earnings capacity.

Balance Sheet

The company maintains a low debt-to-equity ratio, reflecting prudent financial leverage. Return on equity is solid, indicating effective use of shareholder funds. The equity ratio is robust, suggesting a strong capital base relative to assets, enhancing financial stability.

Cash Flow

Free cash flow growth is impressive at 41.7%, supporting future investments and debt reduction. However, the operating cash flow to net income ratio is low, which may indicate potential cash flow management issues. The free cash flow to net income ratio is strong, reflecting good cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.93B	1.93B	1.77B	1.26B	757.91M	711.97M
Gross Profit	1.19B	1.19B	1.04B	865.93M	681.59M	609.10M
EBITDA	634.72M	613.39M	662.57M	455.13M	364.56M	336.19M
Net Income	432.91M	432.91M	450.01M	307.17M	240.72M	215.71M
Balance Sheet
Total Assets	710.00	24.78B	22.86B	20.35B	17.46B	14.27B
Cash, Cash Equivalents and Short-Term Investments	2.00B	2.00B	2.12B	2.47B	1.47B	902.96M
Total Debt	372.67M	372.67M	415.68M	451.78M	562.74M	574.86M
Total Liabilities	22.10B	22.10B	20.56B	18.43B	15.81B	12.86B
Stockholders Equity	2.68B	2.68B	2.29B	1.92B	1.64B	1.40B
Cash Flow
Free Cash Flow	436.12M	436.12M	269.52M	166.49M	195.12M	402.14M
Operating Cash Flow	490.33M	490.33M	305.48M	196.71M	216.62M	412.58M
Investing Cash Flow	-1.84B	-1.84B	-2.59B	-2.40B	-2.78B	-866.77M
Financing Cash Flow	1.34B	1.34B	2.09B	3.01B	3.10B	-458.56M

Axos Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 92.2 is above the 20-day moving average (MA) of 89.40, above the 50-day MA of 86.16, and above the 200-day MA of 73.80, indicating a bullish trend. The MACD of 1.84 indicates Positive momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 62.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AX.

Axos Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX	81 Outperform	$5.13B	12.17	17.42%	―	9.00%	-2.90%
ABCB	79 Outperform	$5.08B	13.05	10.46%	1.01%	5.16%	25.95%
FFIN	77 Outperform	$5.26B	21.43	15.09%	1.99%	14.53%	21.78%
AUB	77 Outperform	$5.09B	17.39	5.18%	3.83%	37.25%	-8.67%
HWC	75 Outperform	$5.32B	11.57	11.30%	2.79%	0.76%	27.66%
Sector *	68 Neutral	$17.80B	11.94	10.22%	3.74%	9.69%	1.17%
FLG	54 Neutral	$5.39B	―	-7.62%	0.31%	-13.26%	86.72%

Axos Financial Corporate Events

Axos Financial Highlights Strong Performance in Presentation

On August 12, 2025, Axos Financial, Inc. announced its investor presentation, highlighting its strong performance metrics compared to peers, with a high return on equity and efficient cost management. The company reported significant growth in deposits and loans, emphasizing its diversified sources of income and robust credit risk management framework. Axos continues to expand its net interest margin and maintain a national reach with a well-distributed customer base, positioning itself as a top performer in the banking sector.

Axos Financial Reports Strong Q2 2025 Earnings Growth

Axos Financial reported its fiscal year 2025 results, highlighting a net income of $110.7 million and a diluted EPS of $1.92 for the quarter ended June 30, 2025, compared to $104.9 million and $1.80 in the same quarter of 2024. The company achieved a net loan growth of $856 million in the June quarter, with significant increases in both net interest and non-interest income. Despite a decrease in annual net income due to a one-time gain in 2024, adjusted earnings and EPS showed substantial growth, reflecting strong operational performance and strategic loan growth across various sectors.

Axos Financial Faces $4M Tax Asset Impairment

On June 30, 2025, the State of California enacted a new fiscal year 2026 budget that altered the apportionment of multi-state income for financial institutions, prompting Axos Financial to remeasure its deferred tax assets and liabilities. This resulted in a one-time non-cash impairment of approximately $4 million, which will be recognized in the fourth quarter of fiscal year 2025. The change is expected to reduce the company’s effective tax rate by about 3% for fiscal years ending June 30, 2026, and beyond, potentially benefiting Axos Financial’s future financial performance.