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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Axon Enterprise has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Axon Enterprise's Interest Coverage for the quarter that ended in Mar. 2026 was 1.02.
Axon Enterprise's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.57.
As of today, Axon Enterprise's Altman Z-Score is 8.20.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Axon Enterprise has the Financial Strength Rank of 5.
Axon Enterprise Financial Strength Related Terms
AXON vs HEI.A, RKLB, CW: Financial Strength Comparison
For the Aerospace & Defense subindustry, Axon Enterprise's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Axon Enterprise Financial Strength vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's Financial Strength distribution charts can be found below:
* The bar in red indicates where Axon Enterprise's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Axon Enterprise has a Z-score of 8.20, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 8.2 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Axon Enterprise (AXON) has a Financial Strength of 5 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Axon Enterprise and its competitors. This is 44% below median its historical median of 9.00. Over the past decade, Axon Enterprise's Financial Strength has ranged from 5.00 to 10.00.
Is Axon Enterprise's Financial Strength too high?
Axon Enterprise's current Financial Strength of 5 is 44% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 10.00. Overall, Axon Enterprise has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Axon Enterprise's Financial Strength compare to HEI.A and RKLB?
Axon Enterprise's Financial Strength of 5 can be compared against companies in the Aerospace & Defense industry. Historically, Axon Enterprise's own Financial Strength has ranged from 5.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Aerospace & Defense company?
A good Financial Strength depends on the Aerospace & Defense industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Axon Enterprise and its competitors. Axon Enterprise's current Financial Strength is 5, which is 44% below median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axon Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Axon Enterprise (AXON) is currently considered Modestly Undervalued. The stock's GF Value™ is $616.52, compared to a current price of $527.76 — trading 14.4% below its estimated fair value. The current Financial Strength is 5, which is 44% below median its 10-year median of 9.00. Axon Enterprise's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Axon Enterprise (AXON), the current Financial Strength is 5 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Axon Enterprise (AXON) Overvalued in 2026?
Based on GuruFocus' analysis, Axon Enterprise stock appears to be undervalued.
The current stock price of $527.76 is trading 14.4% below its estimated GF Value™ of $616.52.
GuruFocus considers Axon Enterprise to be Modestly Undervalued.
Key valuation signals for AXON:
Financial Strength: 5 (44% below median its 10-year median of 9.00)
GF Value™: $616.52 vs. price of $527.76 (14.4% below fair value)
No single metric tells the full story. See the AXON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axon Enterprise Inc is building a public safety operating system by integrating a suite of hardware devices and cloud software solutions. The company's suite includes cloud-hosted digital evidence management solutions, TASER energy devices, drones and robotic security, and training solutions. Its operation comprises of two operating segments, Software and Services, and Connected Devices. The company generates the majority of its revenue from the Connected Devices segment, which is engaged in developing, manufacturing, and selling fully integrated hardware solutions such as conducted energy devices sold under the TASER brand, body cameras, fixed and in-car cameras, drone and counter-drone technologies, and a broad ecosystem of accessories, extended warranties and related hardware products.
85GF Score
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