* Note: Prices are in Million (M) USD.
Description:
Axon Enterprise, Inc. develops, manufactures, and sells conducted energy weapons (DEC) under the TASER brand name in the United States and internationally. The company is headquartered in Scottsdale, Arizona.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,093 M
Debt : $2,047 M
EBITDA : $229 M
Net Debt (Debt - Cash): $954 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Aerospace & defense
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 83.26
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $47 M
Average Revenue: $457 M
Revenue Converted To Free Cash Flow (%): 10.3%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,083 M
Revenue 4 Years Ago (2020-12-31): $681 M
Last 5 Years Average Revenue Growth: 41%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $79 M
Share Count 5 Years Ago (2020-12-31): $62 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $10.10
Trailing 12-Month Earnings Per Share (EPS): $7.85
Average Earnings Per Share (EPS): $8.98
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 5.8%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $747
52-Week Low: $286
Threshold Price (15% Above 52-Week Low): $329
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $57,802 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 12 points to above Axon Enterprise Inc. (AXON) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 3 Years Avg PE
40.00 (>2× median)
• Growth Based PE
41.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 3 Years Avg P/E (40.00)
× EPS ($8.98) = $359.00.
Last 3 Years Avg PE 40, Fair Value PE 12, Industry Based PE 18, Growth Based PE 41, RCFC Based PE 20.23, ROE Based PE 14.63, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 23.28. Value-Trades has assined P/E value 23.28. Since an average (Current Year EPS + Next Year EPS) earning per share is $8.975.
The fair value of Axon Enterprise Inc. (AXON) stock should be (23.28 x $8.975) = $208.92.
