Axos Financial (AX) AI Stock Analysis

• Market Cap: $5.03B
• Dividend Yield: N/A
• Average Volume (3M): 321.00K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.06
• Revenue Growth: 1.66%
• EPS Growth: -9.31%
• Country: US
• Employees: 1,781
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.94
• Shares Outstanding: 56,644,000
• 10 Day Avg. Volume: 424,466
• 30 Day Avg. Volume: 320,997
• 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: 0.71
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 5.89
• 1Y Price Target: $103.63
• Price Target Upside: 17.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 8.19
• Revenue Forecast (FY): $1.38B

• Rating: 78 Outperform
• Price Target: $97.00 ▲(9.73% Upside)

Axos Financial's strong financial performance, positive technical indicators, and strategic corporate actions contribute to a robust overall stock score. The company's effective management and growth initiatives are key strengths, while monitoring revenue trends and debt levels remains important.

Positive Factors

Strategic Acquisitions

The Verdant acquisition enhances Axos's commercial lending capabilities, contributing to sustainable growth and competitive advantage.

Revenue Diversification

Growth in noninterest income from banking service fees and mortgage banking indicates a diversified revenue stream, reducing reliance on interest income.

Operational Efficiency

High return on equity and efficient operations demonstrate strong management and operational efficiency, supporting long-term profitability.

Negative Factors

Net Interest Margin Decline

A declining net interest margin can pressure profitability, impacting the company's ability to generate income from its core banking operations.

Increased Noninterest Expenses

Rising noninterest expenses, partly due to acquisitions, could strain profitability if not managed effectively, affecting long-term financial health.

Debt Levels

Rising debt levels can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

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 multiple channels. The primary source of income comes from net interest income, which is earned from the difference between interest earned on loans and interest paid on deposits. Additionally, the company earns non-interest income from various fees associated with banking services, including account maintenance fees, transaction fees, and service charges. Mortgage origination and servicing also contribute significantly to revenue, as Axos provides home loans and earns fees for originating and servicing these loans. Furthermore, the company engages in investment activities, which include managing investment portfolios and providing wealth management services. Strategic partnerships with fintech companies and other financial institutions enhance its distribution capabilities and customer acquisition efforts, further contributing to Axos's overall earnings.

Axos Financial Financial Statement Overview

Summary

Axos Financial maintains a solid financial position with strong profitability and cash flow metrics. Despite a recent decline in revenue growth, the company benefits from efficient operations and effective equity utilization. Monitoring debt levels and revenue trends will be crucial for sustaining financial health.

Income Statement

Axos Financial shows a strong gross profit margin and consistent net profit margin, indicating stable profitability. However, the recent negative revenue growth rate in TTM suggests potential challenges in revenue generation. The EBIT and EBITDA margins remain robust, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity is solid, showcasing effective use of equity to generate profits. The equity ratio suggests a healthy proportion of equity financing, but the increase in total debt in TTM warrants monitoring.

Cash Flow

Axos Financial demonstrates strong free cash flow growth and a high free cash flow to net income ratio, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is low in TTM, suggesting potential discrepancies between cash flow and reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.91B	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	604.98M	642.41M	662.57M	455.13M	364.56M	336.19M
Net Income	432.92M	432.91M	450.01M	307.17M	240.72M	215.71M
Balance Sheet
Total Assets	27.43B	24.78B	22.86B	20.35B	17.46B	14.27B
Cash, Cash Equivalents and Short-Term Investments	2.62B	2.00B	2.12B	2.47B	1.47B	902.96M
Total Debt	1.35B	372.67M	415.68M	451.78M	562.74M	574.86M
Total Liabilities	24.64B	22.10B	20.56B	18.43B	15.81B	12.86B
Stockholders Equity	2.79B	2.68B	2.29B	1.92B	1.64B	1.40B
Cash Flow
Free Cash Flow	492.38M	436.12M	269.52M	166.49M	195.12M	402.14M
Operating Cash Flow	537.98M	490.33M	305.48M	196.71M	216.62M	412.58M
Investing Cash Flow	-2.83B	-1.84B	-2.59B	-2.40B	-2.78B	-866.77M
Financing Cash Flow	2.37B	1.34B	2.09B	3.01B	3.10B	-458.56M

Axos Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 88.4 is above the 20-day moving average (MA) of 85.11, above the 50-day MA of 81.68, and above the 200-day MA of 77.81, indicating a bullish trend. The MACD of 1.91 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 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
AUB	79 Outperform	$5.18B	19.47	5.42%	3.83%	43.53%	-21.74%
ABCB	78 Outperform	$5.22B	13.22	10.34%	1.02%	2.20%	20.88%
AX	78 Outperform	$5.03B	11.83	16.65%	―	1.66%	-9.31%
HWC	72 Outperform	$5.49B	11.77	11.11%	2.74%	-0.78%	25.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FFIN	63 Neutral	$4.43B	18.30	13.89%	2.42%	12.90%	16.92%
FLG	55 Neutral	$5.36B	-12.54	-4.72%	0.31%	-18.33%	92.89%

Axos Financial Corporate Events

Axos Financial announces resignation of commercial bank president

On December 15, 2025, Axos Financial, Inc. announced that David Park had informed the company of his decision to resign from his role as President, Head of Commercial Bank at Axos Bank, its banking subsidiary, with his departure to take effect at a later date. The company stated that Park’s resignation was not the result of any disagreement relating to Axos Financial, suggesting an orderly leadership transition rather than a move prompted by internal conflict or strategic disputes.

Axos Financial Concludes Annual Stockholders Meeting

On November 13, 2025, Axos Financial, Inc. held its annual meeting of stockholders, where 87.42% of eligible shares were represented. Key outcomes included the election of Class III directors, approval of executive compensation, amendment of the Stock Incentive Plan, and ratification of BDO USA, P.C. as the independent public accounting firm for fiscal year 2026.

Axos Financial Highlights Strong Q1 2026 Performance

On November 12, 2025, Axos Financial, Inc. announced its investor presentation, highlighting its strong financial performance and strategic initiatives. The company reported robust growth in assets, deposits, and net income for the fiscal first quarter of 2026 compared to the previous year. Axos continues to outperform its peers with a high return on equity and efficient operations. The presentation emphasized Axos’s holistic credit risk management framework and its diversified deposit gathering strategy, which includes a significant portion of FDIC-insured or collateralized deposits.

Axos Financial to Acquire Verdant Commercial Capital

On September 19, 2025, Axos Bank, a subsidiary of Axos Financial, Inc., signed an agreement to acquire Verdant Commercial Capital, LLC for $43.5 million, with the transaction expected to close on September 30, 2025. This acquisition is expected to enhance Axos Bank’s equipment leasing business, offering opportunities for cross-selling and is projected to be accretive to earnings per share by 2%-3% in fiscal 2026 and 5%-6% in fiscal 2027.

Axos Financial Completes $200 Million Subordinated Notes Sale

On September 19, 2025, Axos Financial, Inc. completed the sale of $200 million in subordinated notes, which will mature in 2035. These notes, initially offering a fixed interest rate of 7.00% until 2030, will transition to a floating rate tied to the Three-Month Term SOFR plus 379 basis points. The transaction, facilitated by Keefe, Bruyette & Woods, Inc., reflects Axos Financial’s strategic financial maneuvering, potentially impacting its capital structure and stakeholder interests.