Stock Analysis
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- NasdaqGS:AXON
Investing in Axon Enterprise (NASDAQ:AXON) five years ago would have delivered you a 463% gain
We think all investors should try to buy and hold high quality multi-year winners. And highest quality companies can see their share prices grow by huge amounts. Just think about the savvy investors who held Axon Enterprise, Inc. (NASDAQ:AXON) shares for the last five years, while they gained 463%. This just goes to show the value creation that some businesses can achieve. It's also good to see the share price up 27% over the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
See our latest analysis for Axon Enterprise
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During the five years of share price growth, Axon Enterprise moved from a loss to profitability. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Axon Enterprise's earnings, revenue and cash flow.
A Different Perspective
It's nice to see that Axon Enterprise shareholders have received a total shareholder return of 58% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 41% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Axon Enterprise better, we need to consider many other factors. Take risks, for example - Axon Enterprise has 3 warning signs we think you should be aware of.
We will like Axon Enterprise better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
What are the risks and opportunities for Axon Enterprise?
Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally.
Rewards
Earnings are forecast to grow 38.62% per year
Earnings grew by 221.3% over the past year
Risks
Shareholders have been diluted in the past year
Large one-off items impacting financial results
Further research on
Axon Enterprise
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NasdaqGS:AXON
Axon Enterprise
Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally.
Excellent balance sheet with proven track record.
