Axis Capital (AXS) AI Stock Analysis

• Market Cap: $8.39B
• Dividend Yield: 1.8%
• Average Volume (3M): 604.03K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.40
• Revenue Growth: 6.37%
• EPS Growth: 68.32%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 3.25
• Shares Outstanding: 77,037,740
• 10 Day Avg. Volume: 618,017
• 30 Day Avg. Volume: 604,029
• PEG Ratio: 0.03
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 4.04
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $116.89
• Price Target Upside: 7.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $108.00 ▼(-1.08% Downside)

Axis Capital's overall stock score reflects a balance of strong financial performance and attractive valuation, tempered by concerns over recent revenue decline and cash flow challenges. The positive sentiment from the earnings call and strategic corporate events further support the stock's potential. However, attention to cash flow management and competitive pressures in certain market segments remain key considerations.

Positive Factors

Revenue Growth

The substantial increase in premiums indicates strong demand and effective market penetration, supporting long-term revenue growth and stability.

Technology Investments

Investments in technology enhance operational efficiency and decision-making, providing a competitive edge and supporting sustainable growth.

Strong Financial Performance

Consistent financial performance across segments reflects effective strategic execution and positions the company well for future opportunities.

Negative Factors

Revenue Decline

A notable revenue decline raises concerns about market challenges and could impact the company's ability to sustain growth and profitability.

Negative Cash Flows

Negative cash flows may strain financial resources, limiting the company's ability to invest in growth initiatives and manage obligations effectively.

Challenges in Cyber Insurance

Competitive pressures in the cyber insurance market could erode margins and hinder growth in this segment, affecting overall profitability.

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 products. The company earns premiums from policyholders in exchange for coverage against various risks, such as property damage, liability, and professional errors. In addition to premium income, Axis Capital also generates revenue through investment income from its portfolio of invested assets, which includes fixed income securities, equities, and alternative investments. Key partnerships with brokers and agents facilitate access to a broad customer base, enhancing the company's market reach. Furthermore, Axis Capital's emphasis on data analytics and risk modeling allows it to optimize pricing strategies, thereby improving profitability. The company's ability to manage claims effectively and maintain a strong capital position also contributes to its financial stability and earnings potential.

Axis Capital Financial Statement Overview

Summary

Axis Capital demonstrates strong profitability and efficient operations, as evidenced by high gross profit margins and healthy EBIT/EBITDA margins. However, the recent revenue decline and negative cash flows in the TTM period raise concerns about future growth and liquidity. The company's low leverage and strong return on equity provide a solid financial foundation, but attention to cash flow management is necessary to ensure long-term stability.

Income Statement

Axis Capital shows strong gross profit margins, consistently near 100%, indicating efficient cost management. However, the company experienced a significant revenue decline of 22.97% in the TTM period, which is concerning. Net profit margins have been volatile, with a notable drop in the TTM period to 14.51% from 18.16% in the previous year. Despite this, EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.017 in the TTM period, indicating low leverage and financial stability. Return on equity is solid at 14.71%, showing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the low leverage suggests a strong equity position relative to assets.

Cash Flow

Cash flow performance is mixed. The TTM period shows negative operating and free cash flows, indicating potential liquidity issues. However, the free cash flow to net income ratio is 1.0, suggesting that free cash flow aligns with net income. The significant growth in free cash flow in the TTM period is a positive sign, but the negative operating cash flow coverage ratio highlights potential cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.29B	6.02B	5.59B	5.30B	5.32B	4.76B
Gross Profit	1.92B	1.79B	1.20B	1.04B	1.39B	550.44M
EBITDA	1.27B	1.13B	542.42M	374.56M	778.19M	11.71M
Net Income	1.01B	1.08B	376.29M	223.08M	618.61M	-120.42M
Balance Sheet
Total Assets	34.34B	32.52B	30.25B	27.68B	27.37B	25.88B
Cash, Cash Equivalents and Short-Term Investments	5.71B	6.92B	5.31B	4.95B	5.51B	6.01B
Total Debt	1.49B	1.49B	1.52B	1.50B	1.43B	1.45B
Total Liabilities	27.97B	26.43B	24.99B	23.04B	21.96B	20.58B
Stockholders Equity	6.37B	6.09B	5.26B	4.64B	5.41B	5.30B
Cash Flow
Free Cash Flow	-315.75M	1.84B	1.26B	655.39M	1.08B	298.84M
Operating Cash Flow	-315.75M	1.84B	1.26B	692.22M	1.11B	343.50M
Investing Cash Flow	1.10B	280.45M	-855.61M	-655.80M	-1.11B	489.92M
Financing Cash Flow	-872.02M	-417.29M	-202.37M	-149.62M	-186.09M	-908.80M

Axis Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 109.18 is above the 20-day moving average (MA) of 103.28, above the 50-day MA of 99.07, and above the 200-day MA of 97.61, indicating a bullish trend. The MACD of 2.65 indicates Negative momentum. The RSI at 75.37 is Negative, neither overbought nor oversold. The STOCH value of 95.02 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
RLI	83 Outperform	$6.10B	17.01	19.49%	4.05%	3.72%	-16.23%
THG	77 Outperform	$6.61B	10.72	20.02%	1.97%	5.26%	72.46%
SIGI	77 Outperform	$5.17B	13.10	12.22%	1.83%	10.98%	74.87%
KNSL	75 Outperform	$9.29B	19.51	28.73%	0.17%	18.13%	15.69%
WTM	73 Outperform	$5.30B	38.04	2.95%	0.05%	-4.24%	-78.10%
AXS	70 Neutral	$8.39B	8.90	16.27%	1.80%	6.37%	68.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Axis Capital Corporate Events

Axis Capital Announces Major Stock Repurchase Agreement

On November 19, 2025, AXIS Capital Holdings Limited entered into a stock repurchase agreement with T-VIII PubOpps LP, managed by Stone Point Capital LLC, to buy back 2,404,133 shares for approximately $238 million. This transaction is part of the company’s $400 million share repurchase program and will reduce Stone Point’s holdings in AXIS Capital to zero, potentially impacting the company’s shareholder structure and market perception.

Axis Capital Appoints New Chief Accounting Officer

On November 3, 2025, AXIS Specialty U.S. Services, Inc., a subsidiary of AXIS Capital Holdings Limited, announced the appointment of A. Tom Bolovinos as Chief Accounting Officer, effective December 2, 2025. Mr. Bolovinos, who brings extensive experience from his previous roles at Kemper Corporation and Assurant, Inc., will also assume the role of Principal Accounting Officer, succeeding Peter Vogt. His compensation package includes a base salary, cash award, and equity incentives, reflecting the company’s commitment to attracting top talent. This strategic hire is expected to enhance the company’s financial leadership and support its operational goals.