Axis Capital (AXS) AI Stock Analysis

• Market Cap: $7.68B
• Dividend Yield: 1.75%
• Average Volume (3M): 791.96K
• Price to Earnings (P/E): 8.1
• 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: 889,685
• 30 Day Avg. Volume: 791,957
• 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: 1.25
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: 8.53
• 1Y Price Target: $115.02
• Price Target Upside: 13.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $102.00 ▲(0.36% Upside)

The overall stock score of 68 reflects a balanced view of Axis Capital's strengths and challenges. The company's strong earnings call performance and attractive valuation are significant positives. However, concerns about financial performance, particularly the revenue decline and negative cash flows, weigh on the score. Technical indicators suggest a bearish trend, but the oversold condition could signal a potential reversal.

Positive Factors

Revenue Growth

The significant growth in premiums indicates strong demand for Axis Capital's insurance products, enhancing its market position and revenue base.

Technology and Operational Advancements

Investments in technology improve operational efficiency and decision-making, providing a competitive edge and supporting long-term growth.

Insurance Segment Success

The insurance segment's strong performance reflects effective underwriting and market strategy, contributing to sustainable profitability.

Negative Factors

Revenue Decline

A sharp revenue decline raises concerns about Axis Capital's ability to maintain growth and could impact long-term financial health.

Negative Cash Flows

Negative cash flows highlight liquidity challenges, which could constrain Axis Capital's ability to invest in growth opportunities.

Catastrophic Losses Impact

Catastrophic losses can significantly impact profitability and highlight the inherent risks in Axis Capital's insurance operations.

Axis Capital Business Overview & Revenue Model

Company Description

Axis Capital Holdings Limited (AXS) is a global provider of specialty insurance and reinsurance solutions, headquartered in Hamilton, Bermuda. The company operates primarily through its subsidiaries and is involved in various sectors, including property, casualty, and marine insurance. AXS offers a range of products designed to meet the diverse needs of its clients, including property insurance, liability coverage, and reinsurance services, catering to both individual and corporate clients across different industries.

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 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	4.66B	5.96B	5.62B	5.26B	5.32B	4.88B
Gross Profit	4.75B	5.95B	5.61B	5.12B	5.32B	4.84B
EBITDA	1.12B	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	27.60B	27.37B	25.88B
Cash, Cash Equivalents and Short-Term Investments	1.36B	6.92B	5.31B	4.95B	13.19B	13.11B
Total Debt	108.96M	1.49B	1.52B	1.50B	1.43B	1.45B
Total Liabilities	27.97B	26.43B	24.99B	22.96B	21.96B	20.58B
Stockholders Equity	6.37B	6.09B	5.26B	4.64B	5.41B	5.30B
Cash Flow
Free Cash Flow	-3.06B	1.84B	1.26B	655.39M	1.08B	298.84M
Operating Cash Flow	-2.77B	1.84B	1.26B	692.22M	1.11B	343.50M
Investing Cash Flow	2.70B	280.45M	-855.61M	-655.80M	-1.11B	489.92M
Financing Cash Flow	-1.30B	-417.29M	-202.37M	-149.62M	-186.09M	-908.80M

Axis Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.63
• 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 101.63 is above the 20-day moving average (MA) of 94.30, above the 50-day MA of 95.34, and above the 200-day MA of 96.05, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 69.90 is Neutral, neither overbought nor oversold. The STOCH value of 94.53 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
THG	75 Outperform	$6.49B	10.54	20.02%	1.99%	5.26%	72.46%
RLI	74 Outperform	$5.71B	16.28	19.49%	4.21%	3.72%	-16.23%
SIGI	74 Outperform	$4.78B	12.18	12.22%	1.99%	10.98%	74.87%
KNSL	72 Outperform	$9.10B	19.22	28.73%	0.17%	18.13%	15.69%
AXS	68 Neutral	$7.68B	8.12	16.27%	1.75%	6.37%	68.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTM	65 Neutral	$4.86B	34.59	2.95%	0.05%	-4.24%	-78.10%

Axis Capital Corporate Events

AXIS Capital Reports Strong Q3 2025 Earnings

AXIS Capital Holdings Limited is a global specialty insurance and reinsurance provider, operating primarily in the insurance sector with a focus on underwriting and risk management. The company is headquartered in Bermuda and has a strong presence in key markets worldwide.

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.

The most recent analyst rating on (AXS) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Axis Capital stock, see the AXS Stock Forecast page.

AXIS Capital Reports Strong Q2 2025 Earnings Growth

AXIS Capital Holdings Limited is a global specialty underwriter and provider of insurance and reinsurance solutions, operating in sectors such as insurance and reinsurance with a strong presence in Bermuda, the United States, Europe, Singapore, and Canada. In its latest earnings report for the second quarter of 2025, AXIS Capital reported a net income of $216 million available to common shareholders, translating to $2.72 per diluted common share, and an operating income of $261 million, or $3.29 per diluted common share. The company achieved an annualized return on average common equity of 15.7% and an operating return of 19.0%, alongside a combined ratio of 88.9%. Book value per diluted common share increased by 18.6% compared to the previous year. Key highlights include a record profitability with a significant 18.6% growth in diluted book value per share over the prior year, and a strong performance in the insurance segment with an 85.3% combined ratio. The reinsurance segment also contributed positively with a 92% combined ratio. AXIS Capital’s strategic focus on technology and AI through its ‘How We Work’ program has supported its sustained profitable growth. Looking ahead, AXIS Capital remains committed to advancing its strategic initiatives and providing value to customers and the broader market, as expressed by its management.

AXIS Capital’s Earnings Call: Record Growth Amid Challenges

AXIS Capital Holdings recently held its earnings call, showcasing a strong performance with record achievements in several key financial metrics. The overall sentiment was positive, driven by significant growth in the insurance segment, despite some challenges in the reinsurance sector and competitive pressures in property and cyber insurance lines.