Axis Capital (AXS) AI Stock Analysis

• Market Cap: $8.09B
• Dividend Yield: 1.75%
• Average Volume (3M): 658.31K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.43
• Revenue Growth: 6.76%
• EPS Growth: 54.56%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Property & Casualty
• EPS (TTM): 3.17
• Shares Outstanding: 78,653,175
• 10 Day Avg. Volume: 794,856
• 30 Day Avg. Volume: 658,306
• PEG Ratio: -0.52
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.51
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 1.89
• 1Y Price Target: $113.25
• Price Target Upside: 9.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 81 Outperform
• Price Target: $118.00 ▲(14.33%Upside)

AXIS Capital's strong financial performance and strategic initiatives, such as the loss portfolio transfer, position it well in the insurance sector. The stock's undervaluation and positive earnings call highlights further enhance its attractiveness. However, technical indicators suggest cautious optimism, and challenges in property rates and tariffs may impact future performance.

Positive Factors

Earnings Performance

AXIS’s 1Q25 result exceeded forecast due to lower catastrophe losses, better expense ratios, and favorable prior-year development.

Expense Management

Axis has already achieved more than 50% of its 2026 expense target, suggesting potential material upside to 2026 EPS.

Share Repurchase

AXIS repurchased $440mn of its shares, ahead of the forecast of $247mn.

Negative Factors

Expense Ratio

The company missed on the expense ratio, driven by higher variable compensation.

Premium Growth

Higher cession rates resulted in weak premium growth in the Insurance segment.

Pricing Environment

There is some caution on its ability to sustain its loss ratio given the pricing environment.

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 for commercial buildings, residential premises, construction projects, and onshore energy installations; marine insurance products covering offshore energy, cargo, liability, recreational marine, fine art, specie, and hull war; and terrorism, aviation, credit and political risk, and liability insurance products. It also provides professional insurance products that cover directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers. In addition, this segment offers accidental death, travel, and specialty health products for employer and affinity groups. The Reinsurance segment offers reinsurance products to insurance companies, including catastrophe reinsurance products; property reinsurance products covering property damage and related losses resulting from natural and man-made perils; professional lines; credit and surety; and motor liability products. This segment also provides agriculture reinsurance products; coverages for various types of construction risks and risks related to erection, testing, and commissioning of machinery and plants during the construction stage; marine and aviation reinsurance products; and personal accident, specialty health, accidental death, travel, life and disability reinsurance products. The company was founded in 2001 and is headquartered in Pembroke, Bermuda.

How the Company Makes Money

Axis Capital makes money primarily through the underwriting of insurance and reinsurance policies. In the Insurance segment, the company generates revenue by collecting premiums from policyholders in exchange for providing coverage against specified risks. In the Reinsurance segment, Axis Capital earns income by accepting risks from other insurance companies, allowing those companies to mitigate their own risk exposure. The company's earnings are further influenced by investment income, which is derived from the management of its investment portfolio. Key factors contributing to Axis Capital's revenue include its underwriting expertise, risk management strategies, and strategic partnerships with brokers and clients that facilitate access to diverse and profitable markets.

Axis Capital Financial Statement Overview

Summary

Axis Capital presents a robust financial profile characterized by strong revenue growth, high profitability margins, and efficient cash flow management. The company benefits from low leverage and a solid equity base, reducing financial risk. However, fluctuations in EBIT margins and potential equity declines require attention. Overall, the company is well-positioned in the insurance sector, demonstrating resilience and growth potential.

Income Statement

Axis Capital demonstrates strong revenue growth, with total revenue increasing from $5.61 billion in 2023 to $6.03 billion TTM 2025, reflecting a solid growth trajectory. Gross profit margins are consistently high, showing efficient cost management. The net profit margin for TTM 2025 is approximately 14.61%, indicating profitability improvement. However, the significant drop in EBIT margin from 88.09% in 2023 to 18.51% TTM 2025 suggests potential volatility in operational efficiency.

Balance Sheet

Axis Capital maintains a healthy balance sheet with a debt-to-equity ratio of 0.25 for TTM 2025, indicating low leverage. The equity ratio of 17.75% reflects a solid equity base relative to total assets. Return on equity is robust at 14.91% for TTM 2025, showcasing effective use of shareholders' funds. Despite these strengths, the decline in stockholders' equity from 2024 to 2025 warrants monitoring.

Cash Flow

Axis Capital's cash flow position is strong, with a significant increase in free cash flow from $1.25 billion in 2023 to $1.78 billion TTM 2025. The operating cash flow to net income ratio of 2.01 for TTM 2025 indicates efficient cash generation relative to net earnings. Stability in free cash flow to net income ratio suggests consistent cash conversion. However, fluctuations in investing and financing cash flows may indicate variability in cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.03B	5.96B	5.62B	5.14B	5.32B	4.84B
Gross Profit	6.02B	5.95B	5.61B	5.12B	5.32B	4.84B
EBITDA	1.10B	1.08B	542.42M	374.56M	778.19M	11.71M
Net Income	880.40M	1.08B	376.29M	223.08M	618.61M	-116.81M
Balance Sheet
Total Assets	33.25B	32.52B	30.25B	27.60B	27.37B	25.88B
Cash, Cash Equivalents and Short-Term Investments	2.85B	6.92B	5.31B	4.95B	13.19B	13.11B
Total Debt	1.49B	1.49B	1.52B	1.50B	1.43B	1.45B
Total Liabilities	27.35B	26.43B	24.99B	22.96B	21.96B	20.58B
Stockholders Equity	5.90B	6.09B	5.26B	4.64B	5.41B	5.30B
Cash Flow
Free Cash Flow	1.78B	1.84B	1.26B	655.39M	1.08B	298.84M
Operating Cash Flow	1.77B	1.84B	1.26B	692.22M	1.11B	343.50M
Investing Cash Flow	531.70M	280.45M	-855.61M	-655.80M	-1.11B	489.92M
Financing Cash Flow	-805.45M	-417.29M	-202.37M	-149.62M	-186.09M	-908.80M

Axis Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.21
• 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 AXS, the sentiment is Positive. The current price of 103.21 is below the 20-day moving average (MA) of 103.26, above the 50-day MA of 100.65, and above the 200-day MA of 90.85, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 44.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXS.

Axis Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXS	81 Outperform	$8.09B	9.84	15.43%	1.75%	6.76%	54.56%
THG	78 Outperform	$5.95B	13.80	15.74%	2.17%	3.09%	168.29%
RLI	72 Outperform	$6.54B	23.45	17.99%	0.89%	9.18%	-16.06%
SIGI	68 Neutral	$5.12B	22.99	7.48%	1.77%	13.37%	-35.09%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.92%	11.61%	-10.70%
AFG	66 Neutral	$10.39B	12.88	18.51%	7.83%	3.76%	-9.12%
WTM	62 Neutral	$4.51B	152.69	0.61%	0.06%	-4.09%	-94.77%

Axis Capital Corporate Events

Axis Capital Holds Annual General Meeting 2025

On May 15, 2025, AXIS Capital Holdings Limited’s Human Capital and Compensation Committee approved amendments to the Executive RSU Retirement Plan, effective June 30, 2025. The changes expand eligibility to employees aged 60 or older with at least five years of service, allowing a substantial portion of equity awards to vest upon retirement if a Restrictive Covenant Agreement is executed. On May 16, 2025, the company held its Annual General Meeting of Shareholders, where all Class III Director nominees were elected, executive compensation was approved in a non-binding vote, and Deloitte Ltd. was appointed as the independent registered public accounting firm for 2025.

The most recent analyst rating on (AXS) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Axis Capital stock, see the AXS Stock Forecast page.

AXIS Capital Completes Major Loss Portfolio Transfer

On April 24, 2025, AXIS Capital Holdings Limited completed a significant loss portfolio transfer transaction with Enstar Group Limited, covering reinsurance segment reserves primarily related to casualty portfolios from 2021 and prior years. The transaction, involving a $3.1 billion reinsurance segment reserve, was structured as a 75% quota share, with AXIS retroceding $2.3 billion to Enstar’s subsidiary, Cavello Bay Reinsurance Limited. This strategic move, following regulatory approvals, is expected to enhance AXIS’s operational focus and financial positioning in the reinsurance industry.

Axis Capital Announces Resignation of Key Officer

On April 16, 2025, Axis Capital Holdings Limited announced the resignation of Kent Ziegler as Global Corporate Controller and principal accounting officer, effective May 1, 2025. His departure was amicable and not due to any disagreements with the company’s operations or policies. The company has initiated a search for his successor, and in the interim, CFO Peter Vogt will assume the role of principal accounting officer without additional compensation.