Axon Enterprise (AXON) AI Stock Analysis

• Market Cap: $58.08B
• Dividend Yield: N/A
• Average Volume (3M): 554.82K
• Price to Earnings (P/E): 181.8
• Beta (1Y): 1.57
• Revenue Growth: 32.48%
• EPS Growth: 24.29%
• Country: US
• Employees: 4,100
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): 1.41
• Shares Outstanding: 77,850,815
• 10 Day Avg. Volume: 430,624
• 30 Day Avg. Volume: 554,824
• PEG Ratio: 5.45
• Price to Book (P/B): 22.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 161.73
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 7.13
• Enterprise Value/Gross Profit: 43.18
• Enterprise Value/Ebitda: 64.90
• 1Y Price Target: $735.00
• Price Target Upside: 0.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $823.00 ▲(12.69%Upside)

Axon Enterprise scores a solid 76, driven by its strong financial performance and positive earnings call. The company shows significant revenue growth and robust operational metrics, though a high P/E ratio and overbought technical indicators suggest caution. Earnings call data reinforces confidence in growth, but tariff impacts and federal market uncertainty are potential risks.

Positive Factors

Earnings and Guidance

Axon reported strong Q1 results, growing 31% versus a 25% forecast, with full-year revenue and adjusted EBITDA guidance raised slightly.

International Expansion

International bookings hit a record for the first quarter, indicating growing momentum in markets outside the U.S.

Product and Technology Adoption

AI momentum is strong with almost 30,000 users on Draft One, and significant deals including this product, indicating a robust technology adoption.

Negative Factors

Federal Budget Uncertainty

US Federal remains a point of uncertainty given DOGE and all the moving parts to budgets.

Production Capacity Constraints

The demand for TASER 10 is strong but limited by production capacity, prompting an increase in capital expenditure to boost capacity.

Axon Enterprise Business Overview & Revenue Model

Company Description

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, TASER, and Software and Sensors. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include TASER 7, TASER X26P, TASER X2, TASER Consumer devices, and related cartridges; on-officer body cameras, Axon Fleet in-car systems, and other devices; Axon Evidence digital evidence management software; Axon Signal enabled devices, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. It sells its products through its direct sales force, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand the capabilities of Axon Respond and the Fusus Real Time Crime Center in the Cloud solution to provide agencies real-time operations situational awareness, including streamlined investigative workflows. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

Axon Enterprise generates revenue through a diversified model that includes the sale of devices, software, and services. Its product sales primarily consist of TASER-branded CEWs and related accessories. In addition to device sales, Axon offers subscription-based software services through its Axon Cloud platform, which includes evidence management solutions, real-time situational awareness, and enhanced data analytics. Axon also provides professional services such as training and support to its clients. Key revenue streams are bolstered by long-term contracts with law enforcement agencies, which ensure recurring revenue through ongoing software subscriptions and device upgrades. Strategic partnerships and collaborations further enhance Axon's market position and drive growth in its core sectors.

Axon Enterprise Financial Statement Overview

Summary

Axon Enterprise is in a strong financial position with notable revenue growth, profitability, and cash flow generation. While the EBIT margin suggests potential for operational improvements, the company's stable balance sheet and strong cash flow metrics indicate a solid financial foundation, positioning it well for future growth.

Income Statement

Axon Enterprise demonstrates robust financial health with a strong revenue growth rate of 33.3% from the previous year to the TTM period. Gross profit and net profit margins are healthy at 59.5% and 18.1% respectively, showcasing efficient cost management and profitability. However, the EBIT margin of 2.8% indicates room for improvement in operational efficiency.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.31, reflecting moderate leverage that is manageable. Return on equity is impressive at 16.2%, indicating effective use of equity to generate profits. The equity ratio of 52.0% suggests a stable capital structure with substantial equity backing.

Cash Flow

Cash flow performance is strong, highlighted by a significant free cash flow growth rate of 155.5% from the previous year. The operating cash flow to net income ratio is 1.08, indicating ample cash flow generation relative to net income. The free cash flow to net income ratio of 0.88 underscores efficient cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.08B	1.56B	1.19B	863.38M	681.00M
	Gross Profit
1.24B	955.38M	728.64M	540.91M	416.33M
	EBIT
58.54M	154.79M	93.25M	-168.12M	-14.15M
	EBITDA
437.03M	194.63M	227.62M	-149.43M	-475.00K
	Net Income Common Stockholders
377.03M	174.23M	147.14M	-60.02M	-1.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
986.35M	1.32B	974.69M	443.02M	561.97M
	Total Assets
4.47B	3.44B	2.85B	1.69B	1.38B
	Total Debt
721.67M	710.66M	711.11M	26.98M	24.38M
	Net Debt
266.83M	112.12M	357.43M	-329.35M	-131.06M
	Total Liabilities
2.15B	1.82B	1.58B	640.36M	404.77M
	Stockholders Equity
2.33B	1.61B	1.27B	1.05B	976.25M
Cash Flow		Free Cash Flow
329.53M	128.99M	179.25M	74.22M	-34.39M
	Operating Cash Flow
408.31M	189.26M	235.36M	124.49M	38.48M
	Investing Cash Flow
-490.57M	12.48M	-830.97M	252.56M	-356.53M
	Financing Cash Flow
-45.44M	41.31M	598.10M	-174.18M	299.26M

Axon Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 730.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXON, the sentiment is Positive. The current price of 730.29 is above the 20-day moving average (MA) of 697.82, above the 50-day MA of 615.31, and above the 200-day MA of 543.98, indicating a bullish trend. The MACD of 38.82 indicates Positive momentum. The RSI at 65.36 is Neutral, neither overbought nor oversold. The STOCH value of 74.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXON.

Axon Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	78 Outperform	$74.94B	19.38	18.23%	2.10%	14.11%	17.65%
LMT	77 Outperform	$110.11B	20.46	82.55%	2.74%	3.12%	-15.29%
TXT	77 Outperform	$13.49B	16.91	11.70%	0.11%	0.57%	-5.62%
AXON	76 Outperform	$58.08B	181.78	15.13%	―	32.48%	24.29%
LHX	76 Outperform	$46.34B	29.38	8.49%	1.92%	5.39%	36.86%
NOC	70 Outperform	$68.43B	18.71	25.41%	1.73%	0.61%	77.28%
Sector *	65 Neutral	$4.46B	12.23	5.23%	249.78%	4.08%	-12.31%