Axis Capital (AXS) AI Stock Analysis

• Market Cap: $7.71B
• Dividend Yield: 1.78%
• Average Volume (3M): 685.05K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.46
• Revenue Growth: 6.87%
• EPS Growth: 43.53%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Property & Casualty
• EPS (TTM): 3.29
• Shares Outstanding: 78,173,980
• 10 Day Avg. Volume: 539,481
• 30 Day Avg. Volume: 685,047
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 6.04
• Enterprise Value/Ebitda: 9.08
• 1Y Price Target: $115.14
• Price Target Upside: 16.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $107.00 ▲(8.40% Upside)

Axis Capital's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's valuation suggests it may be undervalued, providing potential upside. However, technical analysis indicates mixed signals, and recent cash flow challenges need to be addressed to sustain long-term growth.

Positive Factors

Financial Performance

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

Stock Buyback

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

Valuation

AXS valuation has expanded over the past year as the company has seen no significant reserve movement and has seen mostly stable margins.

Negative Factors

Insurance Segment

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

Premium Growth

For the shares to continue to re-rate higher premium growth needs to improve.

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 generates revenue primarily through the underwriting of insurance and reinsurance policies. The company makes money by collecting premiums from policyholders, which are then invested to generate additional income. Its key revenue streams include direct insurance premiums, reinsurance premiums, and investment income. The company also benefits from a diversified portfolio, which allows it to manage risk effectively and optimize returns. Significant partnerships with brokers and agencies enhance its distribution capabilities, while its strong capital base enables it to underwrite large and complex risks, contributing to overall earnings.

Axis Capital Financial Statement Overview

Summary

Axis Capital demonstrates strong profitability and a solid balance sheet with manageable debt levels. However, recent cash flow challenges could present risks if not addressed. The company's continued revenue growth and stable equity position suggest resilience, but operational efficiency improvements may be necessary to enhance cash flow performance.

Income Statement

Axis Capital's income statement reveals strong profitability with a Gross Profit Margin of 81.96% and a Net Profit Margin of 14.38% for TTM. There is a notable Revenue Growth Rate of 4.05% from 2024 to TTM, indicating steady growth. However, EBIT and EBITDA margins show some inconsistencies over the years, which could point to operational challenges or fluctuating costs.

Balance Sheet

The balance sheet reflects a stable financial position with a low Debt-to-Equity Ratio of 0.17 and a high Return on Equity of 14.44% for TTM. The Equity Ratio is 18.08%, which suggests a reasonable reliance on equity. Despite this, the changes in Total Debt and Stockholders' Equity over the years indicate some financial restructuring.

Cash Flow

The cash flow analysis shows a challenging scenario with negative Free Cash Flow growth of -136.88% from 2024 to TTM, as well as a negative Operating Cash Flow to Net Income Ratio. However, the company demonstrates a strong Free Cash Flow to Net Income Ratio in previous periods, indicating past strength in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.15B	5.96B	5.62B	5.26B	5.32B	4.88B
Gross Profit	1.70B	5.95B	5.61B	5.12B	5.32B	4.84B
EBITDA	1.13B	1.08B	542.42M	374.56M	778.19M	11.71M
Net Income	891.79M	1.08B	376.29M	223.08M	618.61M	-120.42M
Balance Sheet
Total Assets	34.15B	32.52B	30.25B	27.60B	27.37B	25.88B
Cash, Cash Equivalents and Short-Term Investments	1.41B	6.92B	5.31B	4.95B	13.19B	13.11B
Total Debt	106.54M	1.49B	1.52B	1.50B	1.43B	1.45B
Total Liabilities	27.98B	26.43B	24.99B	22.96B	21.96B	20.58B
Stockholders Equity	6.17B	6.09B	5.26B	4.64B	5.41B	5.30B
Cash Flow
Free Cash Flow	-680.51M	1.84B	1.26B	655.39M	1.08B	298.84M
Operating Cash Flow	-680.51M	1.84B	1.26B	692.22M	1.11B	343.50M
Investing Cash Flow	968.42M	280.45M	-855.61M	-655.80M	-1.11B	489.92M
Financing Cash Flow	-815.22M	-417.29M	-202.37M	-149.62M	-186.09M	-908.80M

Axis Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 98.71 is above the 20-day moving average (MA) of 97.12, above the 50-day MA of 97.64, and above the 200-day MA of 94.57, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 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
THG	81 Outperform	$6.21B	11.42	19.23%	2.02%	4.47%	102.98%
KNSL	78 Outperform	$10.66B	23.88	29.98%	0.14%	21.51%	20.03%
RLI	76 Outperform	$6.22B	19.26	19.49%	3.86%	10.29%	-4.70%
SIGI	75 Outperform	$4.76B	12.80	12.19%	1.94%	12.27%	66.53%
AXS	72 Outperform	$7.71B	9.35	15.07%	1.78%	6.87%	43.53%
WTM	69 Neutral	$4.71B	22.74	4.47%	0.05%	8.08%	-57.76%
Sector *	68 Neutral	$17.95B	11.54	10.27%	3.74%	9.64%	1.17%

Axis Capital Corporate Events

Axis Capital Announces New CFO Appointment

On August 14, 2025, AXIS Capital Holdings Limited announced that Matthew Kirk will become the new Chief Financial Officer effective March 31, 2026, succeeding Peter Vogt. Kirk, who joins from Enstar Group Limited, will initially serve as a special advisor to the CEO before assuming the CFO role. This transition is part of AXIS’s ongoing transformation into a specialty underwriting leader, with Kirk expected to contribute to the company’s growth and strategic goals. Peter Vogt will remain as a strategic advisor until the end of 2026 to ensure a smooth transition.