NasdaqGS:AAXN

Stock Analysis Report

Executive Summary

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy weapons (CEWs) worldwide.

Rewards

Earnings are forecast to grow 60.11% per year

Risk Analysis

Highly volatile share price over past 3 months

Profit margins (3.2%) are lower than last year (6.3%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Axon Enterprise's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AAXN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

AAXN

0.4%

US Aerospace & Defense

0.7%

US Market


1 Year Return

62.3%

AAXN

25.8%

US Aerospace & Defense

21.1%

US Market

Return vs Industry: AAXN exceeded the US Aerospace & Defense industry which returned 25.8% over the past year.

Return vs Market: AAXN exceeded the US Market which returned 21.1% over the past year.


Shareholder returns

AAXNIndustryMarket
7 Day0.8%0.4%0.7%
30 Day7.6%-1.1%2.3%
90 Day9.5%1.0%5.0%
1 Year62.3%62.3%28.2%25.8%23.7%21.1%
3 Year202.2%202.2%51.6%43.4%47.0%37.4%
5 Year202.2%202.2%86.7%68.8%65.7%47.5%

Price Volatility Vs. Market

How volatile is Axon Enterprise's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Axon Enterprise undervalued compared to its fair value and its price relative to the market?

278.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAXN ($72.47) is trading above our estimate of fair value ($43.13)

Significantly Below Fair Value: AAXN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AAXN is poor value based on its PE Ratio (278.6x) compared to the Aerospace & Defense industry average (21.2x).

PE vs Market: AAXN is poor value based on its PE Ratio (278.6x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: AAXN is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: AAXN is overvalued based on its PB Ratio (8.5x) compared to the US Aerospace & Defense industry average (2.7x).


Next Steps

Future Growth

How is Axon Enterprise forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

60.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAXN's forecast earnings growth (60.1% per year) is above the savings rate (1.7%).

Earnings vs Market: AAXN's earnings (60.1% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AAXN's revenue (16% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: AAXN's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AAXN's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Axon Enterprise performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAXN has high quality earnings.

Growing Profit Margin: AAXN's current net profit margins (3.2%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: AAXN's earnings have declined by -2.5% per year over the past 5 years.

Accelerating Growth: AAXN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AAXN had negative earnings growth (-38.7%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (8.7%).


Return on Equity

High ROE: AAXN's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Axon Enterprise's financial position?


Financial Position Analysis

Short Term Liabilities: AAXN's short term assets ($576.0M) exceed its short term liabilities ($183.8M).

Long Term Liabilities: AAXN's short term assets ($576.0M) exceed its long term liabilities ($100.8M).


Debt to Equity History and Analysis

Debt Level: AAXN is debt free.

Reducing Debt: AAXN had no debt 5 years ago.

Debt Coverage: AAXN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AAXN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AAXN has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AAXN's debt is covered by short term assets.


Next Steps

Dividend

What is Axon Enterprise's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AAXN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AAXN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAXN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAXN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAXN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Axon Enterprise's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Rick Smith (48yo)

26.9yrs

Tenure

US$246,026,710

Compensation

Mr. Patrick W. Smith, also known as Rick, co-founded TASER International (now Axon Enterprise, Inc.) in September 1993. Mr. Smith is Chief Executive Officer and as a director of TASER since 1993. After gr ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD246.03M) is above average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.4yrs

Average Tenure

40yo

Average Age

Experienced Management: AAXN's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

11.1yrs

Average Tenure

67yo

Average Age

Experienced Board: AAXN's board of directors are seasoned and experienced ( 11.1 years average tenure).


Insider Trading

Insider Buying: AAXN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$267,98714 Nov 19
Mark Kroll
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,168
Max PriceUS$64.30
SellUS$78,68315 Aug 19
Julie Cullivan
EntityIndividual
Shares1,360
Max PriceUS$57.86
SellUS$1,899,58003 Jun 19
Richard Carmona
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares27,935
Max PriceUS$68.00
SellUS$1,032,28703 Jun 19
Luke Larson
EntityIndividual
Role
President
President
Shares15,383
Max PriceUS$67.11
SellUS$962,00015 May 19
Joshua Isner
EntityIndividual
Role
Senior Key Executive
Chief Revenue Officer
Shares14,800
Max PriceUS$65.00
SellUS$4,631,01815 May 19
Hadi Partovi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares70,000
Max PriceUS$66.16
SellUS$47,84714 Mar 19
Joshua Isner
EntityIndividual
Role
Senior Key Executive
Chief Revenue Officer
Shares1,000
Max PriceUS$47.85
SellUS$1,650,08707 Mar 19
Patrick Smith
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares31,735
Max PriceUS$53.53
SellUS$1,872,35107 Mar 19
Luke Larson
EntityIndividual
Role
President
President
Shares36,295
Max PriceUS$53.53
SellUS$321,13707 Mar 19
Joshua Isner
EntityIndividual
Role
Senior Key Executive
Chief Revenue Officer
Shares6,223
Max PriceUS$53.53

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.3%.


Management Team

  • Doug Klint (68yo)

    Corporate Secretary

    • Tenure: 4.7yrs
    • Compensation: US$565.29k
  • Rick Smith (48yo)

    Co-Founder

    • Tenure: 26.9yrs
    • Compensation: US$246.03m
  • Andrea James

    Vice President of Investor Relations & Corporate Strategy

    • Tenure: 2.2yrs
  • Luke Larson (38yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$529.23k
  • Jawad Ahsan (40yo)

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: US$1.06m
  • Josh Isner (33yo)

    Chief Revenue Officer

    • Tenure: 1.9yrs
    • Compensation: US$1.73m
  • Darren Steele

    Senior Vice President of Marketing

    • Tenure: 2.1yrs
  • Josh Goldman

    Senior Vice President of Operations

    • Tenure: 2.9yrs
  • Jenner Holden

    Chief Information Security Officer

    • Tenure: 1.9yrs
  • Isaiah Fields

    General Counsel

    • Tenure: 1.4yrs

Board Members

  • Rick Smith (48yo)

    Co-Founder

    • Tenure: 26.9yrs
    • Compensation: US$246.03m
  • Matthew McBrady (48yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$221.98k
  • Mike Garnreiter (67yo)

    Independent Chairman of the Board

    • Tenure: 7.8yrs
    • Compensation: US$249.98k
  • Mark Kroll (67yo)

    Director

    • Tenure: 16.9yrs
    • Compensation: US$342.87k
  • Hadi Partovi (47yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$221.48k
  • Arnette Heintze

    Member of Senior Executive Advisory Board

    • Tenure: 0yrs
  • Terry Hillard (74yo)

    Member of The Senior Executive Advisory Board

    • Tenure: 0yrs
  • Jim Feigley (69yo)

    Member of Senior Executive Advisory Board

    • Tenure: 0yrs
  • Carroll Childers

    Member of Senior Executive Advisory Board

    • Tenure: 0yrs
  • Rich Carmona (69yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$279.70k

Company Information

Axon Enterprise, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Axon Enterprise, Inc.
  • Ticker: AAXN
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$4.300b
  • Shares outstanding: 59.34m
  • Website: https://www.axon.com

Number of Employees


Location

  • Axon Enterprise, Inc.
  • 17800 North 85th Street
  • Scottsdale
  • Arizona
  • 85255
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAXNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2001
TCSDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2001
0HKELSE (London Stock Exchange)YesCommon StockGBUSDJun 2001

Biography

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy weapons (CEWs) worldwide. The company operates through two segments, TASER and Software and Sensors. It offers TASER X26P, TASER X2, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 23:48
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.