AXIL Brands (AXIL) AI Stock Analysis

• Market Cap: $58.72M
• Dividend Yield: N/A
• Average Volume (3M): 22.03K
• Price to Earnings (P/E): 52.7
• Beta (1Y): 1.06
• Revenue Growth: 0.07%
• EPS Growth: -61.71%
• Country: US
• Employees: 14
• Sector: Technology
• Sector Strength: 88
• Industry: Household & Personal Products
• EPS (TTM): 0.04
• Shares Outstanding: 6,757,717
• 10 Day Avg. Volume: 19,024
• 30 Day Avg. Volume: 22,030
• PEG Ratio: -0.60
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 25.81
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: 29.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $8.50 ▲(6.52% Upside)

AXIL Brands' stock score is primarily influenced by its solid financial position and strong technical momentum. However, the high P/E ratio and overbought technical indicators suggest caution. The company's strategic pivot towards the Hearing Enhancement and Protection segment shows potential, but challenges in other segments and profitability remain concerns.

Positive Factors

Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can sustain profitability over the long term.

Cash Flow Improvement

Improved cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Low Leverage

Conservative leverage reduces financial risk and interest burden, providing stability and room for strategic investments.

Negative Factors

Revenue Growth Challenges

Challenges in maintaining sales momentum could impact long-term growth prospects and market competitiveness.

Declining Profitability

Reduced profitability may limit the company's ability to reinvest in growth and withstand competitive pressures.

Return on Equity Decrease

A decline in return on equity suggests reduced efficiency in generating returns, potentially impacting investor confidence.

AXIL Brands Business Overview & Revenue Model

Company Description

AXIL Brands (AXIL) is a dynamic company specializing in the design, marketing, and distribution of innovative consumer products across various sectors, including outdoor recreation, lifestyle accessories, and personal protection. The company is dedicated to enhancing user experiences through its core offerings, which include high-quality hearing protection devices, outdoor gear, and other lifestyle products that cater to active individuals and enthusiasts.

How the Company Makes Money

AXIL generates revenue primarily through the sale of its diverse range of consumer products, which are marketed both directly to consumers and through various retail partnerships. The company employs a multi-channel distribution strategy that includes e-commerce platforms, brick-and-mortar stores, and collaborations with outdoor and sporting goods retailers. Key revenue streams include direct sales of hearing protection products, outdoor accessories, and lifestyle items, often supplemented by seasonal promotions and marketing campaigns. Additionally, strategic partnerships with retailers and online marketplaces enhance AXIL's market reach and visibility, contributing significantly to its sales performance.

AXIL Brands Financial Statement Overview

Summary

AXIL Brands shows strong gross profit margins and low leverage, but faces challenges in revenue growth and profitability, with declining net profit margins and return on equity. Cash flow generation has improved, but further enhancements are needed to optimize free cash flow conversion.

Income Statement

AXIL Brands has shown a mixed performance in its income statement. The company experienced a decline in revenue growth rate by 2.78% in the latest year, indicating challenges in maintaining sales momentum. However, the gross profit margin remains strong at approximately 71%, showcasing effective cost management. The net profit margin decreased to 3.26% from 7.28% the previous year, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet of AXIL Brands is relatively stable with a low debt-to-equity ratio of 0.078, indicating conservative leverage. The equity ratio stands at a healthy level, reflecting a strong equity base. However, the return on equity has decreased to 8.85% from 26.03% the previous year, pointing to reduced efficiency in generating returns from equity.

Cash Flow

AXIL Brands has shown improvement in cash flow metrics, with a significant increase in free cash flow growth rate by 36.84%. The operating cash flow to net income ratio is robust at 0.78, indicating good cash generation relative to net income. However, the free cash flow to net income ratio of 0.80 suggests room for improvement in converting income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.26M	26.26M	27.50M	23.52M	2.34M	1.63M
Gross Profit	18.64M	18.64M	20.19M	16.36M	1.49M	997.09K
EBITDA	1.46M	1.46M	1.92M	2.15M	-170.21K	-280.00K
Net Income	854.99K	854.99K	2.00M	1.82M	-182.90K	-297.75K
Balance Sheet
Total Assets	12.87M	12.87M	10.97M	10.17M	893.91K	1.26M
Cash, Cash Equivalents and Short-Term Investments	4.77M	4.77M	3.25M	4.83M	373.73K	496.94K
Total Debt	757.44K	757.44K	183.35K	278.20K	211.93K	296.90K
Total Liabilities	3.21M	3.21M	3.28M	3.50M	709.20K	917.12K
Stockholders Equity	9.66M	9.66M	7.70M	6.67M	184.71K	345.65K
Cash Flow
Free Cash Flow	1.59M	1.53M	-157.85K	2.85M	-126.06K	33.00K
Operating Cash Flow	1.93M	1.93M	2.68K	2.92M	-126.06K	48.41K
Investing Cash Flow	-394.30K	-394.30K	-160.53K	1.00M	0.00	-15.41K
Financing Cash Flow	-18.39K	-18.39K	-1.42M	540.05K	2.85K	54.91K

AXIL Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXIL, the sentiment is Positive. The current price of 7.98 is above the 20-day moving average (MA) of 5.66, above the 50-day MA of 5.60, and above the 200-day MA of 6.20, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 73.90 is Negative, neither overbought nor oversold. The STOCH value of 71.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXIL.

AXIL Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AXIL	57 Neutral	$58.72M	52.67	14.37%	―	0.07%	-61.71%
GPRO	50 Neutral	$280.89M	-2.04	-91.95%	―	-27.37%	70.46%
KOSS	49 Neutral	$43.31M	-198.28	-0.69%	―	11.58%	81.08%
UEIC	48 Neutral	$43.71M	-1.87	-14.35%	―	2.35%	18.83%
WLDS	41 Neutral	$10.92M	-0.19	-268.12%	―	-9.05%	77.41%