Axis Capital (AXS) AI Stock Analysis

• Market Cap: $7.55B
• Dividend Yield: 1.85%
• Average Volume (3M): 801.87K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.43
• Revenue Growth: 6.10%
• EPS Growth: 206.71%
• Country: US
• Employees: 1,876
• Sector: Financial
• Sector Strength: 85
• Industry: Insurance - Property & Casualty
• EPS (TTM): 12.34
• Shares Outstanding: 78,650,780
• 10 Day Avg. Volume: 552,531
• 30 Day Avg. Volume: 801,866
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $115.00
• Price Target Upside: 19.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Axis Capital's strong financial performance, particularly in cash flow and profitability, combined with positive earnings call guidance, underpin a high stock score. The technical indicators offer a stable outlook, and the valuation suggests the stock is undervalued, adding to its attractiveness. Overall, Axis Capital is well-positioned in the insurance industry with a promising outlook for continued growth.

Positive Factors

Earnings 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.

Underwriting Performance

Axis's focus on E&S/Wholesale has enhanced underwriting performance, contributing to strong earnings and outperformance compared to peers.

Valuation and Re-rating Potential

Axis's stock has room to re-rate further if it can execute on its expense ratio reduction efforts without materially compromising a growth trajectory.

Negative Factors

Expense Ratio Concerns

The company missed on the expense ratio, driven by higher variable compensation.

Loss Ratio Sustainability

Concerns exist about potential challenges in reserves and loss ratio deterioration due to social inflationary forces.

Pricing Environment Risks

Caution is advised regarding the pricing environment and the ability to sustain growth and improved loss ratios.

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, collecting premiums from clients in exchange for assuming risk. Its revenue model is centered around two primary streams: Insurance and Reinsurance. The Insurance segment generates income by offering various specialty insurance products directly to businesses and individuals, focusing on high-margin, niche markets. The Reinsurance segment earns revenue by providing other insurance companies with risk mitigation services, allowing them to manage their exposure to large losses. In addition to underwriting income, Axis Capital also derives revenue from investment activities, where it manages and invests the premiums collected until claims are paid out. Strategic partnerships and a strong focus on risk management also play a significant role in enhancing the company's financial performance, allowing it to maintain a robust capital position and competitive edge in the insurance and reinsurance 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. While the income statement and cash flow present a positive outlook with significant growth and efficiency, the balance sheet's missing data for 2024 poses limitations in evaluating long-term financial stability.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.96B	5.62B	5.14B	5.32B	4.84B
	Gross Profit
5.95B	5.61B	5.12B	5.32B	4.84B
	EBIT
5.28B	4.95B	365.64M	657.70M	-124.66M
	EBITDA
1.26B	542.42M	374.56M	778.19M	11.71M
	Net Income Common Stockholders
1.08B	376.29M	223.08M	618.61M	-116.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.92B	5.31B	12.15B	13.19B	13.11B
	Total Assets
32.52B	30.25B	27.60B	27.37B	25.88B
	Total Debt
1.49B	1.52B	1.50B	1.43B	1.45B
	Net Debt
-655.30M	569.13M	744.86M	585.89M	547.13M
	Total Liabilities
26.43B	24.99B	22.96B	21.96B	20.58B
	Stockholders Equity
6.09B	5.26B	4.64B	5.41B	5.30B
Cash Flow		Free Cash Flow
1.84B	1.26B	655.39M	1.08B	298.84M
	Operating Cash Flow
1.84B	1.26B	692.22M	1.11B	343.50M
	Investing Cash Flow
280.45M	-855.61M	-655.80M	-1.11B	489.92M
	Financing Cash Flow
-417.29M	-202.37M	-149.62M	-186.09M	-908.80M

Axis Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.96
• 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 95.96 is above the 20-day moving average (MA) of 94.66, above the 50-day MA of 94.36, and above the 200-day MA of 84.89, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.22 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
AXS	83 Outperform	$7.55B	7.68	19.06%	1.85%	6.10%	206.71%
AFG	78 Outperform	$10.52B	11.89	20.33%	2.39%	6.91%	4.97%
RLI	76 Outperform	$7.02B	20.46	17.99%	0.80%	9.18%	-16.06%
THG	76 Outperform	$5.87B	13.92	16.03%	2.16%	4.07%	1110.92%
SIGI	74 Outperform	$5.26B	26.83	7.48%	1.67%	13.37%	-35.09%
WTM	67 Neutral	$4.52B	19.58	5.22%	0.06%	2.48%	-54.02%
Sector *	63 Neutral	$12.38B	9.57	7.87%	79.17%	12.62%	-4.94%

Axis Capital Corporate Events

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.

Spark’s Take on AXS Stock

According to Spark, TipRanks’ AI Analyst, AXS is a Outperform.

Axis Capital’s strong financial performance, particularly in cash flow and profitability, combined with positive earnings call guidance, underpin a high stock score. The technical indicators offer a stable outlook, and the valuation suggests the stock is undervalued, adding to its attractiveness. The absence of significant corporate events or detracting factors contributes to a favorable overall evaluation.

To see Spark’s full report on AXS stock, click here.

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.

Spark’s Take on AXS Stock

According to Spark, TipRanks’ AI Analyst, AXS is a Outperform.

Axis Capital’s overall score reflects its strong financial performance, effective cash management, and strategic initiatives. Key strengths include robust profitability and efficient operations, while technical indicators and valuation further support a positive outlook. The earnings call and corporate events bolster the company’s strategic positioning in the insurance industry.

To see Spark’s full report on AXS stock, click here.