Axon Enterprise (AXON) AI Stock Analysis

• Market Cap: $67.51B
• Dividend Yield: N/A
• Average Volume (3M): 664.32K
• Price to Earnings (P/E): 213.5
• Beta (1Y): 1.54
• Revenue Growth: 32.09%
• EPS Growth: 10.30%
• Country: US
• Employees: 4,100
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 2.12
• Shares Outstanding: 77,850,815
• 10 Day Avg. Volume: 866,281
• 30 Day Avg. Volume: 664,316
• 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: 1.00
• Enterprise Value/Revenue: 28.33
• Enterprise Value/Gross Profit: 46.85
• Enterprise Value/Ebitda: 207.77
• 1Y Price Target: $870.71
• Price Target Upside: 0.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 68 Neutral
• Price Target: $945.00 ▲(8.98% Upside)

Axon's overall stock score is driven by strong earnings call performance and robust financial growth, despite operational inefficiencies and cash flow challenges. The high P/E ratio suggests overvaluation, and technical indicators point to potential overbought conditions. Strategic growth initiatives and international expansion are key strengths.

Positive Factors

International Growth

International revenue growth is accelerating, aided by AI breaking down cloud barriers.

Partnerships

The new partnership with Auror, the largest retail crime network in the US, represents an opportunity for AXON.

Product Innovation

Axon's constant product innovation is supporting a higher growth rate than even bullish expectations.

Negative Factors

Entry Point for Investment

The growth thesis is well understood, and there is a view to await a better entry point for investment.

Market Uncertainty

Despite the small size, the range of outcomes in International and Enterprise markets is less certain than in US State & Local.

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 multiple streams. The primary revenue source is the sale of its Taser weapons, which are widely used by law enforcement agencies globally. Additionally, Axon earns revenue from its Axon Cloud segment, which includes subscriptions to its digital evidence management software and related services. The company also makes money by selling body-worn cameras and other hardware devices, often bundled with software and service subscriptions in multi-year contracts. These contracts provide a recurring revenue model that is complemented by Axon's efforts to expand its product offerings and grow its customer base through strategic partnerships and continuous innovation in public safety technology.

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	2.39B	2.08B	1.56B	1.19B	863.38M	681.00M
Gross Profit	1.45B	1.24B	955.38M	728.64M	540.91M	416.33M
EBITDA	326.10M	437.03M	194.63M	227.62M	-149.43M	-475.00K
Net Income	326.31M	377.03M	174.23M	147.14M	-60.02M	-1.72M
Balance Sheet
Total Assets	6.22B	4.47B	3.41B	2.85B	1.69B	1.38B
Cash, Cash Equivalents and Short-Term Investments	2.09B	986.35M	1.32B	974.69M	443.02M	561.97M
Total Debt	2.05B	721.67M	710.66M	711.11M	20.44M	0.00
Total Liabilities	3.48B	2.15B	1.79B	1.58B	640.36M	404.77M
Stockholders Equity	2.73B	2.33B	1.61B	1.27B	1.05B	976.25M
Cash Flow
Free Cash Flow	176.49M	329.53M	128.99M	179.25M	74.22M	-34.39M
Operating Cash Flow	275.58M	408.31M	189.26M	235.36M	124.49M	38.48M
Investing Cash Flow	-1.49B	-490.57M	12.48M	-830.97M	252.56M	-356.53M
Financing Cash Flow	1.27B	-45.44M	41.31M	598.10M	-174.18M	299.26M

Axon Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 867.12
• 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 AXON, the sentiment is Positive. The current price of 867.12 is above the 20-day moving average (MA) of 747.73, above the 50-day MA of 765.59, and above the 200-day MA of 631.76, indicating a bullish trend. The MACD of 4.66 indicates Negative momentum. The RSI at 71.11 is Negative, neither overbought nor oversold. The STOCH value of 78.52 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
LHX	77 Outperform	$52.05B	31.05	8.90%	1.70%	2.93%	43.29%
GD	76 Outperform	$84.40B	21.07	17.91%	1.86%	11.85%	16.12%
NOC	71 Outperform	$84.47B	21.69	26.50%	1.45%	-0.65%	77.20%
TXT	69 Neutral	$13.94B	17.70	11.42%	0.10%	1.19%	-6.77%
AXON	68 Neutral	$67.51B	213.49	14.00%	―	32.09%	10.30%
LMT	64 Neutral	$99.98B	24.11	73.06%	3.05%	1.09%	-35.50%
Sector *	59 Neutral	AU$1.62B	9.94	2.84%	3.53%	9.79%	5.94%

Axon Enterprise Corporate Events

Axon Enterprise Concludes 2025 Annual Shareholders Meeting

On May 29, 2025, Axon Enterprise, Inc. held its 2025 Annual Meeting of Shareholders, where 89.8% of the company’s shares were voted. During the meeting, directors were elected for a one-year term, the compensation of named executive officers was approved in a non-binding advisory vote, and the appointment of PricewaterhouseCoopers LLP as the independent registered public accountant for fiscal year 2025 was ratified.

The most recent analyst rating on (AXON) stock is a Buy with a $645.00 price target. To see the full list of analyst forecasts on Axon Enterprise stock, see the AXON Stock Forecast page.