Axos Financial (AX) AI Stock Analysis

• Market Cap: $4.94B
• Dividend Yield: N/A
• Average Volume (3M): 353.47K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.21
• 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: 429,078
• 30 Day Avg. Volume: 353,471
• 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: 0.56
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 4.52
• 1Y Price Target: $102.75
• Price Target Upside: 19.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 81 Outperform
• Price Target: $106.00 ▲(22.83% 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

Loan Growth

Strong loan growth indicates robust demand for Axos's lending products, enhancing interest income and supporting long-term revenue expansion.

Net Interest Margin Expansion

Expansion in net interest margin suggests improved profitability from lending activities, contributing to sustainable earnings growth.

Tax Rate Reduction

The reduction in tax rate will enhance net income and EPS, providing a favorable impact on financial performance and shareholder returns.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in maintaining growth momentum, potentially impacting future profitability and market position.

Noninterest Expense Increase

Rising noninterest expenses may pressure profit margins, necessitating effective cost management to sustain financial health.

Loan Yield Pressure

Pressure on loan yields could reduce interest income, affecting profitability if not offset by volume growth or cost efficiencies.

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 consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate term unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text messaging banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

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	613.39M	642.41M	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	24.78B	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: Neutral
• Last Price: 86.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AX, the sentiment is Neutral. The current price of 86.3 is below the 20-day moving average (MA) of 89.66, below the 50-day MA of 88.08, and above the 200-day MA of 74.36, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 18.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$4.94B	11.72	17.42%	―	9.00%	-2.90%
ABCB	79 Outperform	$5.13B	13.20	9.99%	1.00%	5.95%	25.95%
AUB	78 Outperform	$5.13B	17.50	4.22%	3.78%	37.25%	-8.67%
HWC	75 Outperform	$5.36B	11.67	10.78%	2.77%	0.76%	27.66%
FFIN	66 Neutral	$4.88B	19.90	14.14%	2.17%	14.53%	21.78%
FLG	48 Neutral	$4.81B	-6.78	-7.88%	0.35%	-13.26%	86.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.