Axis Capital Holdings (AXS)
NYSE:AXS
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Axis Capital
(NYSE:AXS)
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Rating:69Neutral
Price Target:
$116.00
â–²(14.33% Upside)
Action:DowngradedDate:02/28/26
The score is driven primarily by solid profitability and balance-sheet positioning, tempered by the sharp 2025 cash-flow reversal (the biggest risk factor). Valuation is a clear positive with a low P/E, while technicals suggest only moderate momentum. Earnings-call guidance and sentiment add support, though reinsurance competition, loss-ratio pressure, and higher credit-risk exposure remain watch items.
Positive Factors
Improving Underwriting Performance
Sustained improvement in combined ratio and high operating ROE reflect durable underwriting discipline and pricing adequacy across cycles. Better loss ratios and operating returns support long-term earnings resilience, capital generation, and the ability to deploy capital to growth or returns.
Negative Factors
Cash-Flow Volatility
A sharp reversal to negative operating and free cash flow raises questions about cash conversion and liquidity under stress. Persistent cash volatility can constrain capital allocation, increase reliance on capital markets for growth or buybacks, and weaken resilience to underwriting shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Underwriting Performance
Sustained improvement in combined ratio and high operating ROE reflect durable underwriting discipline and pricing adequacy across cycles. Better loss ratios and operating returns support long-term earnings resilience, capital generation, and the ability to deploy capital to growth or returns.
Read all positive factors
Axis Capital (AXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.42B
Dividend Yield1.8%
Average Volume (3M)614.04K
Price to Earnings (P/E)8.3
Beta (1Y)0.47
Revenue Growth6.37%
EPS Growth68.32%
CountryUS
Employees1,876
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)3.25
Shares Outstanding73,965,940
10 Day Avg. Volume481,299
30 Day Avg. Volume614,044
Financial Highlights & Ratios
PEG Ratio34.55
Price to Book (P/B)1.32
Price to Sales (P/S)1.28
P/FCF Ratio-204.57
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit3.49
Enterprise Value/Ebitda5.81
Forecast
1Y Price Target
$124.22Price Target Upside22.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)13.34
Revenue Forecast (FY)$6.87B
Axis Capital Business Overview & Revenue Model
Company Description
AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers property insurance products...
How the Company Makes Money
Axis Capital generates revenue primarily through the underwriting of insurance and reinsurance products. The company earns premiums from policyholders in exchange for coverage against various risks, such as property damage, liability, and professi...
Axis Capital Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a strongly positive operational and financial performance: record premiums, significant book value and ROE gains, improved combined ratios and successful execution on strategic initiatives (How We Work, ACS, lower middle market expansion). Management emphasized disciplined cycle and reserve management, strong capital returns, and confidence in 2026 execution while acknowledging pockets of caution—most notably cyber, competitive pressures in reinsurance, near-term G&A variability from investments and some mix-driven loss-ratio pressure. On balance, positives (record results, margin improvement, capital strength, strategic investments) substantially outweigh the identified challenges.Positive Updates
Record Financial and Shareholder Metrics
Diluted book value per common share increased 18% year-over-year to $77.20; net income available to common shareholders was $978M for the full year ($12.35 per diluted share) and $282M in the quarter ($3.67 per diluted share); operating ROE ~18% (18.1% operating ROE for the year).
Negative Updates
Cyber Market Pressure and Limited Growth Opportunity
Cyber faces escalating risk (increasing ransomware/AI-enabled threats) and increased competition from MGAs, placing downward pressure on price adequacy; management maintains a cautious and selective appetite and does not expect cyber to be a growth area in the near term.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Financial and Shareholder Metrics
Diluted book value per common share increased 18% year-over-year to $77.20; net income available to common shareholders was $978M for the full year ($12.35 per diluted share) and $282M in the quarter ($3.67 per diluted share); operating ROE ~18% (18.1% operating ROE for the year).
Read all positive updates
Company Guidance
AXIS guided that Insurance GWP should grow mid‑ to‑high single‑digits in 2026 while maintaining premium adequacy, whereas AXIS Re could see overall gross premiums down in 2026 (potentially up to double‑digit declines); management expects consolidated combined ratios to run roughly around 90% (full‑year catastrophe losses normalized to ~4%–5%), is targeting an underwriting G&A ratio of about 11% (versus ~12.4% in 2025), an ongoing effective tax rate of ~19%–20%, and has modestly increased investment risk with below‑BBB exposure at 19% (near its 15%–20% range). Capital priorities remain funding organic growth first, with opportunistic buybacks thereafter (current repurchase authorization ~$112M) after returning $139M of dividends and $888M of repurchases in 2025.Axis Capital Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.56B | 6.02B | 5.59B | 5.30B | 5.32B |
| Gross Profit | 3.28B | 1.79B | 1.20B | 1.04B | 1.39B |
| EBITDA | 1.35B | 1.13B | 542.42M | 374.56M | 778.19M |
| Net Income | 1.01B | 1.08B | 376.29M | 223.08M | 618.61M |
Balance Sheet | |||||
| Total Assets | 32.32B | 32.52B | 30.25B | 27.68B | 27.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 6.92B | 5.31B | 4.95B | 5.51B |
| Total Debt | 1.60B | 1.49B | 1.52B | 1.50B | 1.43B |
| Total Liabilities | 25.97B | 26.43B | 24.99B | 23.04B | 21.96B |
| Stockholders Equity | 6.36B | 6.09B | 5.26B | 4.64B | 5.41B |
Cash Flow | |||||
| Free Cash Flow | -40.93M | 1.84B | 1.26B | 655.39M | 1.08B |
| Operating Cash Flow | -40.93M | 1.84B | 1.26B | 692.22M | 1.11B |
| Investing Cash Flow | -628.73M | 280.45M | -855.61M | -655.80M | -1.11B |
| Financing Cash Flow | -1.09B | -417.29M | -202.37M | -149.62M | -186.09M |
Axis Capital Technical Analysis
Neutral
101.46
Price Trends
102.71
Negative
102.35
Negative
99.59
Positive
Market Momentum
-0.83
Positive
47.64
Neutral
43.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXS, the sentiment is Neutral. The current price of 101.46 is below the 20-day moving average (MA) of 102.21, below the 50-day MA of 102.71, and above the 200-day MA of 99.59, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AXS.
Axis Capital Risk Analysis
Axis Capital disclosed 55 risk factors in its most recent earnings report. Axis Capital 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
Axis Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.34B | 4.80 | 22.87% | 0.05% | -4.24% | -78.10% | |
78 Outperform | $5.33B | 14.63 | 23.08% | 4.05% | 3.72% | -16.23% | |
78 Outperform | $7.60B | 17.97 | 28.25% | 0.17% | 18.13% | 15.69% | |
77 Outperform | $4.51B | 10.96 | 13.59% | 1.85% | 10.98% | 74.87% | |
77 Outperform | $6.02B | 8.17 | 19.99% | 1.97% | 5.26% | 72.46% | |
69 Neutral | $7.42B | 8.30 | 16.27% | 1.80% | 6.37% | 68.32% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
AXS
Axis Capital
101.46
4.14
4.25%
RLI
RLI
57.98
-16.85
-22.52%
SIGI
Selective Insurance Group
74.58
-13.31
-15.14%
THG
Hanover Insurance
172.23
3.13
1.85%
WTM
White Mountains Insurance Group
2,211.91
319.77
16.90%
KNSL
Kinsale Capital Group
326.50
-158.68
-32.71%
Axis Capital Corporate Events
Executive/Board Changes
Axis Capital Announces Board-Level Leadership Transition
Neutral
Feb 20, 2026
AXIS Capital Holdings Limited, a company in the financial sector, did not provide additional details on its specific lines of business in this announcement. As such, the firm is identified here primarily in its role as a publicly governed corporat...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Axis Capital Grants Special Equity Award to CEO
Positive
Jan 30, 2026
On January 27, 2026, AXIS Capital’s board-level Human Capital and Compensation Committee granted a special equity award valued at $3.5 million to President and CEO Vincent Tizzio, recognizing his exceptional performance in 2025, when the com...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.