Axos Financial, Inc. (AX)
Valuation Overview•Is Axos Financial, Inc. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
High-quality fundamentals with a strong composite quality score of 76/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
AX exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is backed by a fortress balance sheet, holding significant net cash ($1.6B) and minimal debt risk.
The company maintains stable top-line performance paired with highly explosive earnings growth (23.2% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 32.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | -$1.1B | +9.2% | — | — | +21.5% | |
| EBITDA | -$303.1M | — | +20.8% | — | — | |
| Net Income | $124.7M | -3.8% | +21.6% | — | +18.0% | |
| EPS (Diluted) | $-2.79 | -3.0% | +23.2% | +20.0% | +18.7% | |
| Free Cash Flow | $69.9M | +61.8% | +30.7% | +9.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 63.0% | 63.0% | 72.9% | 75.0% |
| Operating Margin | 32.5% | 34.0% | 37.9% | 40.8% |
| Net Margin | 99.3% | 24.1% | 26.9% | 27.2% |
| FCF Margin | 88.9% | 17.0% | 26.6% | 31.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.13 | $1.90 | -10.8% | ||
| Q1'26 | $2.07 | $2.25 | +8.7% | ||
| Q4'25 | $1.86 | $2.07 | +11.3% | ||
| Q3'25 | $1.82 | $1.94 | +6.6% | ||
| Q2'25 | $1.74 | $1.81 | +4.0% | ||
| Q1'25 | $1.75 | $1.82 | +4.0% | ||
| Q4'24 | $1.78 | $1.93 | +8.4% | ||
| Q3'24 | $1.81 | $1.80 | -0.6% |
Total return is +23.9% (1Y), lagging the benchmark by -1.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +0.8% | -8.5% | — |
| 1Y | +23.9% | -1.1% | — |
| 3YCAGR | +30.7% | +11.1% | — |
| 5YCAGR | +14.3% | +0.4% | — |
| 10YCAGR | +17.8% | +4.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Axos Financial, Inc. (AX) valuation, health, and returns.
Axos Financial, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +42.2% upside to DCF intrinsic value of $125.25)
Axos Financial, Inc. has multiple valuation anchors: DCF Intrinsic Value: $125.25 | Peer Relative Fair Value: $82.32 | Wall Street Analyst Target: $111.00 (implying +26.0% upside). A convergence of these signals offers higher conviction.
Axos Financial, Inc. displays good financial health with a composite quality score of 76/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 16.0%.
Axos Financial, Inc. returns capital via buybacks instead of dividends, carrying a 1.2% buyback yield and reducing outstanding shares by -0.8% in the last 12 months.
Axos Financial, Inc.'s current growth trajectory is Decelerating. The company achieved +9.2% 1Y revenue growth and -3.0% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 19 analysts, beating EPS expectations in 83% of recent quarters with a -1-quarter streak. The consensus price target represents a +26.0% change from current levels.
Investment risks for Axos Financial, Inc. include: -19.0% 1-year max drawdown. Volatility risk is characterized by a beta of 1.08x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.