Axis Capital (AXS) AI Stock Analysis

• Market Cap: $8.26B
• Dividend Yield: 1.68%
• Average Volume (3M): 566.58K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.44
• Revenue Growth: 6.76%
• EPS Growth: 54.56%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Property & Casualty
• EPS (TTM): 3.17
• Shares Outstanding: 78,653,175
• 10 Day Avg. Volume: 565,836
• 30 Day Avg. Volume: 566,578
• PEG Ratio: -0.51
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $113.25
• Price Target Upside: 5.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 82 Outperform
• Price Target: ―

Axis Capital's strong profitability, efficient cash flow management, and undervalued stock position it as a favorable choice in the insurance industry. Positive technical indicators and strategic corporate actions further support its high stock score, despite some challenges highlighted in the earnings call.

Positive Factors

Expense Management

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

Financial Performance

AXIS's recent run of strong earnings generation is attributable to a favorable specialty underwriting environment, talent additions, and deliberate volatility-reducing underwriting decisions.

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.

Growth Challenges

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

Pricing Environment

Analyst is somewhat cautious 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 exhibits robust financial health characterized by strong profitability, effective cost management, and excellent cash flow generation. The income statement and cash flow show significant growth and efficiency, though the balance sheet's missing 2024 data poses some limitations.

Income Statement

Axis Capital demonstrates strong profitability with a significant gross profit margin averaging around 99% and a robust net profit margin increasing from 6.4% in 2023 to 18.2% in 2024. Revenue growth is healthy at approximately 6.1% from 2023 to 2024, indicating positive business momentum. The company also showcases high EBIT and EBITDA margins, reflecting efficient operations and cost management. However, fluctuations in past profitability metrics suggest some historical volatility.

Balance Sheet

Axis Capital maintains a sound equity position with a solid equity ratio of around 17.4% in 2023. The debt-to-equity ratio is low at 0.29, indicating prudent financial leverage. However, the 2024 balance sheet lacks reported stockholders' equity and liabilities data, which limits a complete analysis. Historically, the balance sheet shows consistent asset growth, though equity volatility in recent years could pose potential risks.

Cash Flow

The company displays impressive cash flow performance with a strong free cash flow growth rate of 46.9% from 2023 to 2024. Operating cash flow significantly exceeds net income, indicating excellent cash generation ability. The free cash flow to net income ratio is highly favorable, suggesting the company's capacity to generate cash far exceeds its reported earnings. Axis Capital's effective cash management strategies are a notable strength.

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
	EBIT
1.12B	1.08B	4.95B	365.64M	657.70M	-124.66M
	EBITDA
1.10B	1.08B	542.42M	374.56M	778.19M	11.71M
	Net Income Common Stockholders
880.40M	1.08B	376.29M	223.08M	618.61M	-116.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	6.92B	5.31B	12.15B	13.19B	13.11B
	Total Assets
0.00	32.52B	30.25B	27.60B	27.37B	25.88B
	Total Debt
0.00	1.49B	1.52B	1.50B	1.43B	1.45B
	Net Debt
0.00	-655.30M	569.13M	744.86M	585.89M	547.13M
	Total Liabilities
0.00	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: 106.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 106.93 is above the 20-day moving average (MA) of 102.06, above the 50-day MA of 98.43, and above the 200-day MA of 88.85, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.38 is Negative, 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	82 Outperform	$8.26B	10.28	15.43%	1.68%	6.76%	54.56%
THG	79 Outperform	$6.29B	14.59	15.74%	2.00%	3.09%	168.29%
RLI	76 Outperform	$6.97B	24.98	17.99%	0.79%	9.18%	-16.06%
SIGI	71 Outperform	$5.31B	23.84	7.48%	1.70%	13.37%	-35.09%
AFG	66 Neutral	$10.28B	12.92	18.51%	2.53%	3.76%	-9.12%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%
WTM	63 Neutral	$4.62B	156.66	0.61%	0.05%	-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.