Axis Capital (AXS) AI Stock Analysis

• Market Cap: $7.87B
• Dividend Yield: 1.72%
• Average Volume (3M): 730.98K
• Price to Earnings (P/E): 8.3
• 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: 538,431
• 30 Day Avg. Volume: 730,977
• 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: 1.22
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $114.59
• Price Target Upside: 12.11% 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 ▼(-0.21% Downside)

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, 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: 102.21
• 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 102.21 is above the 20-day moving average (MA) of 100.35, above the 50-day MA of 96.57, and above the 200-day MA of 96.77, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 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
RLI	81 Outperform	$5.70B	16.26	19.49%	4.26%	3.72%	-16.23%
SIGI	78 Outperform	$4.75B	12.10	12.22%	1.99%	10.98%	74.87%
THG	77 Outperform	$6.62B	10.74	20.02%	1.94%	5.26%	72.46%
KNSL	74 Outperform	$8.95B	18.92	28.73%	0.18%	18.13%	15.69%
AXS	68 Neutral	$7.87B	8.33	16.27%	1.72%	6.37%	68.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WTM	65 Neutral	$5.15B	36.83	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.