AXA SA (AXAHY) AI Stock Analysis

• Market Cap: $93.64B
• Dividend Yield: 5.03%
• Average Volume (3M): 97.64K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.37
• Revenue Growth: -0.39%
• EPS Growth: 9.10%
• Country: US
• Employees: 100,041
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 2.35
• Shares Outstanding: 2,090,621,800
• 10 Day Avg. Volume: 114,380
• 30 Day Avg. Volume: 97,635
• PEG Ratio: 0.91
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 6.51
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 13.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $51.00 ▲(13.28% Upside)

AXA SA's strong earnings growth and strategic acquisitions are the most significant factors driving the score. Solid financial performance and attractive valuation support the stock's potential, while technical indicators suggest caution due to bearish trends.

Positive Factors

Revenue Growth

Consistent revenue growth across all business lines and regions indicates strong market demand and effective business strategies, supporting long-term stability.

Strategic Acquisitions

The acquisition enhances AXA's competitive position in Italy, expanding its market share and providing growth opportunities in the motor insurance sector.

Solvency Ratio

A strong solvency ratio reflects AXA's financial resilience, ensuring it can meet long-term obligations and withstand economic fluctuations.

Negative Factors

Decline in Asset Management Earnings

The decline in asset management earnings could impact overall profitability, as increased costs may continue to pressure margins in this segment.

Softening UK Motor Pricing

Decreased pricing in the UK motor market could reduce profitability, affecting AXA's revenue from this segment and highlighting competitive pressures.

High Leverage

High leverage and low equity ratio suggest reliance on debt, which could limit financial flexibility and increase risk during economic downturns.

AXA SA Business Overview & Revenue Model

Company Description

AXA SA, through its subsidiaries, provides insurance, asset management, and banking services worldwide. The company operates through France, Europe, Asia, AXA XL, International, and Transversal & Central Holdings segments. It offers life and savings insurance products, such as savings and retirement, other health, and personal protection products. The company also provides property and casualty insurance products, including car, home, and personal or professional liability to individual and business clients; international insurance for large corporate clients in Europe; and marine and aviation, as well as property and casualty reinsurance products. In addition, it offers asset management services in the areas of various asset classes, including equities, bonds, hedge funds, private equity, and real estate for the group's insurance companies and their clients, and retail and institutional clients. The company was founded in 1852 and is based in Paris, France.

How the Company Makes Money

AXA generates revenue through multiple key streams, primarily through insurance premiums collected from policyholders in its life, health, and property/casualty segments. The company also earns income from investment management fees charged on assets it manages, as well as from its investment portfolio, which includes equities, bonds, and real estate. Additionally, AXA benefits from reinsurance arrangements, where it cedes a portion of the risk to other insurers for a fee. Significant partnerships with financial institutions and distribution networks enhance AXA's access to new customers and markets, further contributing to its earnings. Overall, the company's diversified approach to insurance and investment services allows it to maintain a stable revenue base.

AXA SA Financial Statement Overview

Summary

AXA SA demonstrates solid financial health with steady revenue growth and improved profitability. The strong free cash flow supports its operational effectiveness, though leverage and low equity ratios highlight potential financial risks.

Income Statement

AXA SA shows a stable revenue base with Total Revenue at €89.8 billion in 2024, reflecting a moderate growth from 2023. The Net Profit Margin improved slightly to 8.8% in 2024 from 8.2% in 2023, indicating efficient cost management. However, the EBIT and EBITDA data for 2024 are missing, limiting a full profitability analysis. Revenue growth and net income improvements highlight a positive trajectory, but the absence of EBIT data poses some risk to the earnings stability.

Balance Sheet

The company's Debt-to-Equity Ratio is 1.24, reflecting a moderate level of leverage typical for the insurance industry. The Return on Equity (ROE) improved to 15.8% in 2024, demonstrating effective use of equity. However, the Equity Ratio is relatively low at 7.6%, suggesting a high reliance on liabilities. Strong cash position with cash equivalents of €333.6 billion is a positive aspect, but high liabilities remain a concern.

Cash Flow

AXA SA's Free Cash Flow grew significantly by 99.5% in 2024, indicating strong cash generation capability. The Operating Cash Flow to Net Income Ratio is 1.58, suggesting robust cash flow relative to net income. The Free Cash Flow to Net Income Ratio is 1.52, further confirming the company's ability to generate cash. Despite the positive cash flow metrics, reliance on cash reserves for investments might limit future growth potential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.23B	89.82B	87.15B	86.79B	111.69B	112.35B
Gross Profit	83.21B	89.82B	87.15B	86.79B	99.03B	112.35B
EBITDA	11.02B	10.59B	-738.00M	7.29B	10.05B	2.84B
Net Income	7.79B	7.89B	7.19B	5.06B	7.29B	3.16B
Balance Sheet
Total Assets	645.57B	653.76B	644.45B	696.70B	775.49B	804.59B
Cash, Cash Equivalents and Short-Term Investments	328.67B	333.57B	320.12B	323.68B	424.91B	455.34B
Total Debt	76.32B	62.14B	59.54B	63.75B	61.84B	66.28B
Total Liabilities	597.67B	601.28B	597.49B	648.32B	700.26B	728.41B
Stockholders Equity	45.49B	49.94B	49.58B	46.07B	71.13B	71.61B
Cash Flow
Free Cash Flow	21.27B	11.99B	6.01B	7.53B	6.18B	25.14B
Operating Cash Flow	21.74B	12.47B	6.44B	7.88B	6.53B	25.53B
Investing Cash Flow	-12.86B	-11.25B	-1.59B	-155.00M	-8.95B	-11.43B
Financing Cash Flow	-6.83B	-7.33B	-4.34B	-6.12B	-4.33B	-4.93B

AXA SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXAHY, the sentiment is Negative. The current price of 45.02 is below the 20-day moving average (MA) of 47.71, below the 50-day MA of 45.80, and below the 200-day MA of 46.50, indicating a bearish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 35.93 is Neutral, neither overbought nor oversold. The STOCH value of 8.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXAHY.

AXA SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	79 Outperform	$33.10B	8.54	17.81%	―	16.68%	-28.54%
HIG	78 Outperform	$36.76B	10.78	20.07%	1.55%	7.11%	22.52%
PFG	76 Outperform	$20.04B	13.28	13.74%	3.44%	12.33%	―
AXAHY	72 Outperform	$93.64B	11.98	16.54%	5.03%	-0.39%	9.10%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AEG	67 Neutral	$11.66B	8.58	14.42%	5.77%	-6.19%	―
AIG	64 Neutral	$39.41B	13.09	7.68%	2.02%	-23.02%	52.43%