Axon EnterpriseAXON +9.85%81 Return-on-Tangible-Equity is 44.85% as of Mar. 2026, which is 383% above its 10-year median of 9.28. GuruFocus rates AXON with a GF Score™ of 81/100 and a GF Value™ of $601.68 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 334 Aerospace & Defense companies, Axon Enterprise ranks better than 58.68% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Axon Enterprise's annualized net income for the quarter that ended in Mar. 2026 was $677 Mil. Axon Enterprise's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,510 Mil. Therefore, Axon Enterprise's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 44.85%.
The historical rank and industry rank for Axon Enterprise's Return-on-Tangible-Equity or its related term are showing as below:
AXON'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.22 Med: 9.28 Max: 25.7
Current: 12.04
During the past 13 years, Axon Enterprise's highest Return-on-Tangible-Equity was 25.70%. The lowest was -6.22%. And the median was 9.28%.
AXON's Return-on-Tangible-Equity is ranked better than 58.68% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs AXON: 12.04
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Axon Enterprise Return-on-Tangible-Equity Related Terms
Axon Enterprise Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Axon Enterprise's Return-on-Tangible-Equity can be seen below:
* 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 vs HEI.A, CW, FTAI: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Axon Enterprise's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Axon Enterprise's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 44.85% mean?
Axon Enterprise (AXON) has a Return-on-Tangible-Equity of 44.85% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Axon Enterprise and its competitors. This is 383% above median its historical median of 9.28. According to the industry distribution chart, Axon Enterprise ranks #138 out of 334 companies in the Aerospace & Defense industry, placing it in the top 41.3%.
Is Axon Enterprise's Return-on-Tangible-Equity too high?
Axon Enterprise's current Return-on-Tangible-Equity of 44.85% is 383% above median its 10-year median of 9.28. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Axon Enterprise's value of 44.85% is 447.3% above this industry median. Based on the distribution chart, Axon Enterprise ranks #138 out of 334 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Axon Enterprise has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Axon Enterprise's Return-on-Tangible-Equity compare to HEI.A and CW?
According to the Aerospace & Defense industry distribution chart, Axon Enterprise ranks #138 out of 334 companies for Return-on-Tangible-Equity. This puts Axon Enterprise in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.20. Axon Enterprise's value of 44.85% is 447.3% above this benchmark. While the company's 10-year median is 9.28 vs. the industry median of 8.20, Axon Enterprise has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Axon Enterprise's current Return-on-Tangible-Equity of 44.85% is 447.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Axon Enterprise and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axon Enterprise's current Return-on-Tangible-Equity is 44.85%, which is 383% above median its own 10-year median of 9.28. 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 $601.68, compared to a current price of $510.60 — trading 15.1% below its estimated fair value. The current Return-on-Tangible-Equity is 44.85%, which is 383% above median its 10-year median of 9.28 and 447.3% above the Aerospace & Defense industry median of 8.20. Axon Enterprise's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Axon Enterprise (AXON), the current Return-on-Tangible-Equity is 44.85% 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 $510.60 is trading 15.1% below its estimated GF Value™ of $601.68.
GuruFocus considers Axon Enterprise to be Modestly Undervalued.
Key valuation signals for AXON:
Return-on-Tangible-Equity: 44.85% (383% above median its 10-year median of 9.28)
GF Value™: $601.68 vs. price of $510.60 (15.1% below fair value)
Industry Position: 447.3% above the Aerospace & Defense median (#138 of 334)
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.
81GF Score
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