Axos Financial (AX) AI Stock Analysis

• Market Cap: $4.42B
• Dividend Yield: N/A
• Average Volume (3M): 315.72K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.40
• Revenue Growth: 15.93%
• EPS Growth: 0.17%
• Country: US
• Employees: 1,781
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 1.81
• Shares Outstanding: 56,373,090
• 10 Day Avg. Volume: 374,246
• 30 Day Avg. Volume: 315,717
• PEG Ratio: -7.29
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.19
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: 0.95
• 1Y Price Target: $85.83
• Price Target Upside: 3.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: $82.00 ▼(-1.42%Downside)

Axos Financial receives a strong overall stock score due to its robust financial performance, attractive valuation, and positive corporate developments. The technical analysis indicates a positive trend, and the earnings call further supports growth prospects, despite some minor challenges. The company's strategic initiatives and strong operational efficiency position it well for future growth.

Positive Factors

Earnings

AX's 3Q FY25 numbers came in above Street estimates on the top and bottom line, as a stronger NIM, better fee income, and lower SG&A all were key ingredients in producing a good quarter.

Growth Prospects

AX is seen as a long-term winner in the digital banking space, with expected impressive loan growth due to creative structuring and quick decision-making.

Valuation

With shares trading at a discount to peers, the risk-reward is viewed as skewed to the upside.

Negative Factors

Market Volatility

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

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 makes money through various revenue streams primarily centered around its banking operations. The company earns interest income from loans provided to consumers and businesses, which is a major component of its revenue. Additionally, Axos generates non-interest income from service fees, mortgage banking activities, and wealth management services. By maintaining a focus on digital banking, Axos reduces operational costs and enhances profitability. Strategic partnerships and technological innovations also play a vital role in expanding its customer base and increasing revenue, although specific partnership details are not disclosed.

Axos Financial Financial Statement Overview

Summary

Axos Financial exhibits strong financial performance, highlighted by robust revenue and profit growth, low financial leverage, and efficient cash flow generation. The company maintains a high net profit margin and solid EBIT and EBITDA margins, indicating good operational efficiency. However, the equity ratio is somewhat low, suggesting a higher reliance on liabilities.

Income Statement

Axos Financial shows a strong income statement with consistent revenue growth and improving profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is 60.35%, and the net profit margin is 22.12%, both indicating robust operational efficiency. Revenue has grown significantly over the years, with a 52.69% increase from 2022 to TTM, highlighting a strong growth trajectory. The EBIT and EBITDA margins are also solid at 31.19% and 32.67%, respectively, reflecting effective cost management.

Balance Sheet

The balance sheet of Axos Financial demonstrates a stable financial position with a debt-to-equity ratio of 0.17, suggesting low financial leverage. The company's return on equity (ROE) is impressive at 16.4%, indicating effective use of equity to generate profits. However, the equity ratio is somewhat lower at 10.86%, which could imply a higher reliance on liabilities to finance assets. Overall, the balance sheet reflects a healthy financial structure with manageable debt levels.

Cash Flow

Axos Financial's cash flow statement exhibits strong cash generation capabilities. The operating cash flow to net income ratio is 0.82 for TTM, showing good conversion of income to cash. The free cash flow has grown by 26.31% from 2024 to TTM, indicating robust cash flow growth. The free cash flow to net income ratio is 0.8, demonstrating efficient cash flow management. Overall, the cash flow position is strong and supports the company's growth initiatives.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.93B	1.77B	1.26B	757.91M	711.97M	717.62M
Gross Profit	1.16B	1.04B	865.93M	681.59M	609.10M	530.19M
EBITDA	630.81M	662.57M	455.13M	364.56M	336.19M	297.62M
Net Income	427.11M	450.01M	307.17M	240.72M	215.71M	183.44M
Balance Sheet
Total Assets	23.98B	22.86B	20.35B	17.46B	14.27B	13.85B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.12B	2.47B	1.47B	902.96M	1.94B
Total Debt	437.43M	415.68M	451.78M	562.74M	574.86M	478.29M
Total Liabilities	21.38B	20.56B	18.43B	15.81B	12.86B	12.62B
Stockholders Equity	2.60B	2.29B	1.92B	1.64B	1.40B	1.23B
Cash Flow
Free Cash Flow	307.84M	269.52M	166.49M	195.12M	402.14M	271.79M
Operating Cash Flow	350.75M	305.48M	196.71M	216.62M	412.58M	284.12M
Investing Cash Flow	-1.43B	-2.59B	-2.40B	-2.78B	-866.77M	-1.35B
Financing Cash Flow	987.27M	2.09B	3.01B	3.10B	-458.56M	2.16B

Axos Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 83.18 is above the 20-day moving average (MA) of 73.49, above the 50-day MA of 70.40, and above the 200-day MA of 69.34, indicating a bullish trend. The MACD of 2.53 indicates Negative momentum. The RSI at 78.86 is Negative, neither overbought nor oversold. The STOCH value of 90.80 is Negative, 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	80 Outperform	$4.42B	10.67	17.80%	―	15.93%	0.17%
ABCB	76 Outperform	$4.57B	12.30	10.19%	1.24%	7.16%	31.69%
AUB	75 Outperform	$4.65B	14.95	7.30%	4.35%	26.09%	-19.05%
BANF	72 Outperform	$4.24B	19.33	14.14%	1.49%	11.42%	7.58%
ASB	69 Neutral	$4.16B	29.46	3.23%	3.77%	0.21%	-12.02%
Sector *	67 Neutral	$16.85B	11.65	9.71%	3.90%	11.61%	-9.60%
TFSL	64 Neutral	$3.68B	45.61	4.22%	8.63%	8.99%	3.89%

Axos Financial Corporate Events

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.

The most recent analyst rating on (AX) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Axos Financial stock, see the AX Stock Forecast page.

Axos Financial Expands Stock Repurchase Program by $100M

On May 8, 2025, Axos Financial, Inc. announced a $100 million increase to its common stock repurchase program, adding to the $48 million remaining from a previous increase. The repurchase program allows the company to buy back shares at its discretion, with no set timeline, potentially impacting its capital allocation and market positioning.

The most recent analyst rating on (AX) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on Axos Financial stock, see the AX Stock Forecast page.

Axos Financial to Present New Investor Strategy

Axos Financial announced that it will use a new investor presentation at meetings starting May 6, 2025. The company highlights its strong performance metrics, including high return on equity and efficiency ratio, compared to peers. Axos is focused on sustained growth through diversified lending and deposit strategies, technology synergies, and new business initiatives. The company has demonstrated strong credit performance with low charge-off ratios and continues to expand its deposit base significantly, transforming its deposit mix over the years.