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Axon Enterprise (AXON)
NASDAQ:AXON
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Axon Enterprise
(NASDAQ:AXON)
78Outperform
Positive Factors
Customer Feedback
Customers are overwhelmingly positive about Axon's innovation, particularly the AI Era Plan bundle.
Product Innovation
Axon is expanding its capabilities with new fixed ALPR cameras, enhancing its competitive position in the market.
Strategic Partnerships
Axon's partnership with Auror and integration with the Citizen App enhance its ability to provide more comprehensive crime hub capabilities.
Negative Factors
Competitive Landscape
Impressive array of new products and partnerships announced at the event is expected to further their competitive position in an increasingly competitive landscape.
Partnership Risks
The new fixed ALPR camera solutions are meant to fill in a capability gap after its partnership with Flock Safety ended.
RPO Deceleration
Total future contracted bookings surged 40%+ to $10.1 billion, a bigger focus than RPO, which decelerated.
Axon Enterprise (AXON) vs. S&P 500 (SPY)
Market Cap
$46.90B
Dividend YieldN/A
Average Volume (3M)618.57K
Price to Earnings (P/E)126.1
Beta (1Y)1.61
Revenue Growth33.32%
EPS Growth111.64%
CountryUS
Employees4,100
SectorIndustrials
Sector Strength75
IndustryAerospace & Defense
Share Statistics
EPS (TTM)4.78
Shares Outstanding77,848,145
10 Day Avg. Volume480,380
30 Day Avg. Volume618,568
Financial Highlights & Ratios
PEG Ratio1.13
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.02
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit38.60
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$678.00Price Target Upside10.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Axon Enterprise Business Overview & Revenue Model
Company DescriptionAxon Enterprise, Inc. is a leading provider of public safety technology and equipment. The company is best known for its development of conducted electrical weapons (CEWs), body-worn cameras, and digital evidence management solutions. Serving law enforcement, military, and civilian markets, Axon is committed to advancing transparency and accountability through innovative technology that enhances public safety and security.
How the Company Makes MoneyAxon 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 Key Performance Indicators (KPIs)
Any
Annual Recurring Revenue
Tracks the steady income generated from subscriptions or long-term contracts, reflecting the reliability of Axon's revenue model and its ability to maintain customer relationships.
Tracks the steady income generated from subscriptions or long-term contracts, reflecting the reliability of Axon's revenue model and its ability to maintain customer relationships.
Data provided by:
Main Street Data
Main Street DataAxon Enterprise Financial Statement Overview
Summary
Axon Enterprise shows robust financial health with strong revenue growth, healthy profit margins, and impressive cash flow performance. The company's solid balance sheet and effective cash management further strengthen its financial position. However, operational efficiency could be improved as indicated by the relatively low EBIT margin.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.85
Very Positive
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.78
Positive
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.88
Very Positive
| 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 | |||
| 653.11M | 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
Positive
613.30
Price Trends
549.61
Positive
590.20
Positive
505.70
Positive
Market Momentum
14.24
Negative
62.67
Neutral
93.61
Negative
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 613.3 is above the 20-day moving average (MA) of 563.06, above the 50-day MA of 549.61, and above the 200-day MA of 505.70, indicating a bullish trend. The MACD of 14.24 indicates Negative momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 93.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXON.
Axon Enterprise Risk Analysis
Axon Enterprise disclosed 55 risk factors in its most recent earnings report. Axon Enterprise reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Axon Enterprise Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $73.04B | 18.89 | 18.23% | 2.09% | 14.11% | 17.65% | |
79 Outperform | $111.93B | 20.64 | 82.55% | 2.71% | 3.12% | -15.29% | |
78 Outperform | $46.90B | 126.07 | 19.10% | ― | 33.32% | 111.64% | |
73 Outperform | $70.02B | 19.15 | 25.41% | 1.71% | 0.61% | 77.28% | |
73 Outperform | $11.99B | 15.25 | 11.70% | 0.11% | 0.57% | -5.62% | |
72 Outperform | $40.90B | 25.93 | 8.49% | 2.12% | 5.39% | 36.86% | |
63 Neutral | $4.23B | 11.54 | 5.34% | 209.77% | 4.14% | -9.49% |
* Industrials Sector Average
Performance Comparison
AXON
Axon Enterprise
613.30
296.55
93.62%
GD
General Dynamics
272.12
-9.37
-3.33%
LHX
L3Harris Technologies
220.02
12.93
6.24%
LMT
Lockheed Martin
477.75
26.39
5.85%
NOC
Northrop Grumman
486.50
19.53
4.18%
TXT
Textron
70.37
-14.91
-17.48%
Axon Enterprise Earnings Call Summary
Earnings Call Date:Feb 25, 2025
(Q4-2024)
| % Change Since: 23.49%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Positive
The call was largely positive, emphasizing significant revenue growth, strong bookings, and successful product launches, particularly in AI and international markets. However, challenges in political environments affecting headquarters investment and supply constraints for key products were noted.Q4-2024 Updates
Positive Updates
Record Revenue and Growth
Axon closed the year with revenue in excess of $2 billion, nearly double the revenue reported two years ago, marking the third consecutive year of over 30% growth.
Strong Bookings Performance
The company booked over $5 billion in business last year, with about half closing in Q4. This includes the highest ever officer safety plan bookings in Q4.
International and Enterprise Growth
International bookings grew nearly 50% sequentially in Q4, and enterprise bookings roughly tripled year-over-year.
AI and New Product Adoption
The AI Era Plan saw strong adoption with 10 deals closed in Q4, only weeks after launch, signaling positive market reception.
Software and ARR Growth
Software & Services revenue grew 41% year-over-year, with ARR increasing by 37% to $1 billion.
Strong Future Pipeline
Total future contracted bookings exceed $10 billion, providing a solid foundation for growth in 2025 and beyond.
TASER 10 Demand
TASER 10 orders continue to outpace TASER 7 by 2x, indicating strong market demand.
Negative Updates
Headquarters Investment Challenges
Challenges in Arizona's political and legal environment are causing setbacks for Axon's headquarters campus investment, with potential relocation being considered.
Supply Constraints for TASER 10
Current demand for TASER 10 is outpacing supply, requiring further investment to balance production capabilities.
Company Guidance
During the call, Axon's executive team provided guidance for 2025, forecasting revenue between $2.55 billion and $2.65 billion, which represents approximately 25% annual growth at the midpoint. This projection indicates Axon's seventh consecutive year of at least 25% growth. The company also anticipates an adjusted EBITDA range of $640 million to $670 million, maintaining a 25% margin. The guidance reflects confidence in Axon's strong pipeline, which includes over $10 billion in future contracted bookings. The team highlighted significant growth in various segments, such as a 34% increase in Q4 revenue year-over-year, with TASER up 37%, Sensors up 18%, and Software & Services up 41%. Additionally, the company's software solutions now have over 1 million users, contributing 40% of total revenue in Q4. Axon is also investing in new technologies and expanding its product offerings in artificial intelligence, real-time operations, drones, and robotics, which have doubled its overall opportunity set. These investments are expected to drive continued growth and innovation in the coming years.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.