Axon Enterprise (AXON) AI Stock Analysis

• Market Cap: $41.91B
• Dividend Yield: N/A
• Average Volume (3M): 903.77K
• Price to Earnings (P/E): 164.5
• Beta (1Y): 1.67
• Revenue Growth: 31.77%
• EPS Growth: -15.34%
• Country: US
• Employees: 4,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.17
• Shares Outstanding: 78,910,470
• 10 Day Avg. Volume: 1,117,078
• 30 Day Avg. Volume: 903,772
• PEG Ratio: 1.07
• Price to Book (P/B): 19.34
• Price to Sales (P/S): 21.62
• P/FCF Ratio: 136.62
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 21.86
• Enterprise Value/Gross Profit: 36.25
• Enterprise Value/Ebitda: 179.84
• 1Y Price Target: $814.58
• Price Target Upside: 56.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 6.32
• Revenue Forecast (FY): $2.74B

• Rating: 58 Neutral
• Price Target: $555.00 ▲(6.32% Upside)

Axon's overall score is driven by strong earnings call results and growth potential, but is weighed down by technical analysis indicating bearish momentum and high valuation concerns. Financial performance shows growth but highlights risks in profitability and cash flow management.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Software and Services Expansion

Growth in software and services enhances recurring revenue streams, improving financial stability and customer retention.

International Market Expansion

Successful international expansion diversifies revenue sources and reduces reliance on domestic markets, enhancing growth potential.

Negative Factors

Profit Margin Pressures

Margin pressures from tariffs can affect profitability, indicating potential challenges in maintaining cost efficiency.

Federal Segment Challenges

Challenges in the federal segment may limit growth opportunities and expose the company to regulatory and budgetary risks.

Cash Flow Challenges

Declining free cash flow indicates potential issues in cash generation, which could impact future investments and financial flexibility.

Axon Enterprise Business Overview & Revenue Model

Company Description

Axon Enterprise, Inc. (AXON) is a technology company focused on providing solutions for law enforcement and public safety agencies. Founded in 1993, the company is best known for its flagship product, the Taser electroshock weapon, and has since expanded its offerings to include body-worn cameras, digital evidence management software, and advanced data analytics tools. Axon operates primarily in the public safety sector, offering a comprehensive suite of products designed to enhance the capabilities of police departments and other first responders.

How the Company Makes Money

Axon generates revenue through multiple streams, primarily by selling its hardware products, such as Tasers and body-worn cameras, as well as through subscription-based services for its software platforms. The company offers a cloud-based evidence management system known as Evidence.com, which allows agencies to store, manage, and share digital evidence securely. Subscription fees from this service provide a recurring revenue model. Additionally, Axon has established significant partnerships with various law enforcement agencies and government entities, enabling it to secure long-term contracts and bulk orders, further contributing to its earnings. The company also invests in research and development to innovate and expand its product offerings, ensuring it remains competitive in the evolving public safety landscape.

Axon Enterprise Financial Statement Overview

Summary

Axon Enterprise demonstrates strong revenue growth and a solid gross profit margin, reflecting effective cost management. However, profitability metrics such as net profit margin and EBIT margin have shown some decline, indicating potential operational inefficiencies. The balance sheet is stable with moderate leverage, but cash flow metrics suggest challenges in cash generation.

Income Statement

Axon Enterprise shows a strong revenue growth trajectory with a 7.38% increase in TTM. The gross profit margin is robust at 60.47%, indicating efficient cost management. However, the net profit margin has decreased to 13.64% from 18.10% in the previous year, and the EBIT margin is negative, reflecting potential operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.75, suggesting a balanced approach to leverage. Return on equity is healthy at 13.43%, though it has decreased from the previous year. The equity ratio stands at 43.96%, indicating a strong equity base relative to total assets.

Cash Flow

Operating cash flow is positive, but the free cash flow has declined significantly by 51.33% in the TTM. The operating cash flow to net income ratio is 0.21, indicating that cash generation is lower relative to net income. The free cash flow to net income ratio is 0.64, showing some cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.56B	2.08B	1.56B	1.19B	863.38M	681.00M
Gross Profit	1.54B	1.24B	955.45M	728.64M	531.09M	416.33M
EBITDA	310.92M	437.03M	183.37M	227.62M	-117.11M	6.28M
Net Income	257.10M	377.03M	175.78M	147.14M	-60.02M	-1.72M
Balance Sheet
Total Assets	6.66B	4.47B	3.41B	2.85B	1.69B	1.38B
Cash, Cash Equivalents and Short-Term Investments	2.38B	986.35M	1.32B	974.69M	443.02M	561.97M
Total Debt	2.10B	1.40B	710.66M	711.11M	20.44M	0.00
Total Liabilities	3.63B	2.15B	1.79B	1.58B	640.36M	404.77M
Stockholders Equity	3.03B	2.33B	1.61B	1.27B	1.05B	976.25M
Cash Flow
Free Cash Flow	145.02M	329.53M	128.99M	179.25M	74.22M	-34.39M
Operating Cash Flow	244.27M	408.31M	189.26M	235.36M	124.49M	38.48M
Investing Cash Flow	-940.23M	-490.57M	12.48M	-830.97M	252.56M	-356.53M
Financing Cash Flow	1.44B	-45.44M	41.31M	598.10M	-174.18M	299.26M

Axon Enterprise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 521.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXON, the sentiment is Negative. The current price of 521.99 is below the 20-day moving average (MA) of 624.08, below the 50-day MA of 681.33, and below the 200-day MA of 681.67, indicating a bearish trend. The MACD of -50.44 indicates Positive momentum. The RSI at 22.32 is Positive, neither overbought nor oversold. The STOCH value of 9.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXON.

Axon Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	75 Outperform	$80.64B	20.28	26.15%	1.54%	-0.14%	72.35%
LHX	70 Neutral	$51.96B	29.83	9.13%	1.73%	2.83%	47.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KTOS	61 Neutral	$11.93B	548.09	1.20%	―	14.00%	23.78%
AXON	58 Neutral	$41.91B	164.49	10.03%	―	31.77%	-15.34%
SSTI	44 Neutral	$113.84M	-11.12	-14.61%	―	-1.83%	-642.89%
DGLY	37 Underperform	$2.40M	―	-233.66%	―	-9.62%	95.79%

Axon Enterprise Corporate Events

Axon Enterprise, Inc. Reports Robust Growth Amid Challenges

Axon Enterprise, Inc. Reports Strong Growth Amid Challenges in Latest Earnings Call

Axon Enterprise Reports Strong Q3 2025 Growth

Axon Enterprise, Inc. is a leading public safety technology company, specializing in connected devices and software solutions for law enforcement and public safety agencies worldwide. The company is renowned for its TASER devices and comprehensive digital evidence management systems.