Axos Financial (AX) AI Stock Analysis

• Market Cap: $4.11B
• Dividend Yield: N/A
• Average Volume (3M): 290.40K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.38
• 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: 254,635
• 30 Day Avg. Volume: 290,404
• PEG Ratio: 0.28
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.92
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.35
• Enterprise Value/Ebitda: 0.23
• 1Y Price Target: $83.17
• Price Target Upside: 15.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: ―

Axos Financial scores well due to its strong financial performance, marked by robust revenue growth and high profitability margins, further supported by a debt-free balance sheet. The technical analysis indicates upward price momentum, though caution is advised due to potential overbought conditions. The valuation is attractive with a low P/E ratio, and the earnings call and corporate events provide positive insights into future growth and strategic direction.

Positive Factors

Axos Advisor Services

The success of Axos Advisor Services is underappreciated by investors, presenting an opportunity for shares to outperform as the platform gains more recognition.

Digital Banking Growth

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.

Financial Performance

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.

Negative Factors

Interest Rate Environment

There could be upside to growth and margins if loan prepayment speeds slow and a steeper yield curve helps unit economics on loans priced on intermediate/long-term benchmarks.

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 demonstrates robust financial health with strong revenue growth, high profitability margins, and efficient cash flow management. The company operates with no debt, enhancing its financial stability. However, there is room to improve the equity ratio to further strengthen its balance sheet.

Income Statement

Axos Financial shows strong profitability with a high gross profit margin of 96.15% and a net profit margin of 25.10% for TTM. Revenue growth is robust at 62.68% from 2023 to 2024, and EBIT and EBITDA margins are healthy at 52.34% and 38.45%, respectively, indicating solid operational efficiency.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of zero, reflecting no debt in TTM. The ROE is impressive at 17.15%, indicating efficient use of equity. The equity ratio stands at 10.64%, which could be improved to enhance financial stability against liabilities.

Cash Flow

Axos Financial exhibits strong cash flow management with a significant free cash flow growth rate of 40.53% from 2023 to 2024. The operating cash flow to net income ratio is 0.92, showing a solid conversion of earnings into cash. Free cash flow to net income ratio is 0.88, indicating efficient cash generation relative to profits.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.68B	1.06B	890.18M	705.34M	632.85M	572.39M
	Gross Profit
1.65B	1.07B	890.18M	705.34M	632.85M	572.39M
	EBIT
1.16B	563.63M	431.74M	392.53M	305.74M	262.63M
	EBITDA
812.15M	570.17M	455.13M	375.45M	340.46M	297.62M
	Net Income Common Stockholders
427.11M	450.01M	307.17M	240.72M	215.71M	183.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.08B	2.12B	2.47B	1.47B	902.96M	1.94B
	Total Assets
23.98B	22.86B	20.35B	17.46B	14.27B	13.85B
	Total Debt
0.00	415.68M	451.78M	562.74M	574.86M	478.29M
	Net Debt
-1.56B	-1.56B	-1.78B	-639.84M	-140.77M	-1.28B
	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
340.44M	269.52M	157.74M	184.51M	402.14M	254.30M
	Operating Cash Flow
359.48M	305.48M	187.96M	206.01M	412.58M	266.63M
	Investing Cash Flow
-1.39B	-2.59B	-2.39B	-2.77B	-866.77M	-1.33B
	Financing Cash Flow
941.65M	2.09B	3.01B	3.10B	-458.56M	2.27B

Axos Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 72.2 is above the 20-day moving average (MA) of 71.02, above the 50-day MA of 66.21, and above the 200-day MA of 68.77, indicating a bullish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 85.81 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	$4.11B	9.94	17.80%	―	15.93%	0.17%
AUB	75 Outperform	$4.59B	14.76	7.30%	4.22%	26.09%	-19.05%
ABCB	70 Neutral	$4.35B	11.71	10.19%	1.27%	9.14%	31.69%
BANF	69 Neutral	$4.16B	18.96	14.14%	1.47%	2.59%	7.66%
TFSL	67 Neutral	$3.71B	46.03	4.22%	8.55%	8.99%	3.89%
ASB	65 Neutral	$3.98B	28.20	3.23%	3.83%	0.21%	-12.02%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%

Axos Financial Corporate Events

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.