Axos Financial Inc (AX, Financial) has recently experienced a notable surge in its stock price, with a 19.55% gain over the past week and a 16.48% gain over the past three months. The company's market capitalization now stands at $2.88 billion, with a current stock price of $49.9. When compared to the GF Value of $59.3, Axos Financial is considered modestly undervalued, a consistent assessment from three months ago when the GF Value was $56.75. This suggests that the stock may still have room to grow to reach its intrinsic value as defined by GuruFocus.com.
Introduction to Axos Financial Inc
Axos Financial Inc, operating in the banking industry, is a bank holding company that primarily functions through its subsidiary, BofI Federal Bank. The bank specializes in providing financing for residential properties and small to medium-sized businesses, with a significant portion of its mortgage exposure in Southern California. Axos Financial has diversified its product distribution through various channels, including online banking brands and sales teams. The company's strategic approach to banking and finance has contributed to its robust market presence and recent stock performance.
Assessing Axos Financial's Profitability
With a Profitability Rank of 6/10, Axos Financial demonstrates a solid ability to generate profits relative to its industry peers. The company's Return on Equity (ROE) is an impressive 17.96%, outperforming 86.68% of 1,457 companies in the banking sector. Additionally, its Return on Assets (ROA) stands at 1.69%, surpassing 82.4% of 1,460 companies. These figures, coupled with a decade-long streak of profitability, underscore Axos Financial's financial health and operational efficiency.
Growth Trajectory of Axos Financial
The company's Growth Rank is an impressive 9/10, indicating a strong upward trend in both revenue and earnings. Axos Financial has achieved a 16.40% 3-Year Revenue Growth Rate per Share and a 15.70% 5-Year Revenue Growth Rate per Share, outpacing the majority of its industry counterparts. Furthermore, the 3-Year EPS without NRI Growth Rate stands at 20.20%, and the 5-Year EPS without NRI Growth Rate is at 17.10%, both of which are higher than the industry averages. These growth metrics reflect Axos Financial's successful expansion and its potential for future gains.
Notable Shareholders in Axos Financial
Several prominent investors have taken notice of Axos Financial's potential. Chuck Royce (Trades, Portfolio) holds 159,364 shares, representing a 0.28% share percentage. First Eagle Investment (Trades, Portfolio) has invested in 109,983 shares, accounting for 0.19% of the company's shares. Additionally, Steven Cohen (Trades, Portfolio) holds a stake of 15,735 shares, equating to 0.03% share percentage. The confidence of these seasoned investors further validates the company's market position and growth prospects.
Competitive Landscape
When compared to its competitors, Axos Financial stands strong with a market cap of $2.88 billion. Bank of Hawaii Corp (BOH, Financial) has a market cap of $2.61 billion, Inter & Co Inc (INTR, Financial) is valued at $2.01 billion, and Pacific Premier Bancorp Inc (PPBI, Financial) has a market cap of $2.53 billion. Axos Financial's recent stock performance and growth trajectory position it favorably within this competitive set.
Conclusion
In summary, Axos Financial Inc's recent stock price rally can be attributed to its consistent profitability, impressive growth rates, and a market valuation that suggests it is still modestly undervalued. The company's strong ROE and ROA, coupled with a decade of profitability, signal a robust financial foundation. Its significant growth in revenue and earnings per share further cements its status as a compelling investment opportunity. With the backing of notable investors and a favorable position among its competitors, Axos Financial Inc presents an attractive proposition for value investors looking for potential in the banking sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
