Axos FinancialAX +3.23%85 ROE % is 16.64% as of Mar. 2026, which is 3% below its 10-year median of 17.12. GuruFocus rates AX with a GF Score™ of 85/100 and a GF Value™ of $87.69 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,524 Banks companies, Axos Financial ranks better than 86.68% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Axos Financial's annualized net income for the quarter that ended in Mar. 2026 was $499 Mil. Axos Financial's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $2,998 Mil. Therefore, Axos Financial's annualized ROE % for the quarter that ended in Mar. 2026 was 16.64%.
The historical rank and industry rank for Axos Financial's ROE % or its related term are showing as below:
AX'
s ROE % Range Over the Past 10 Years
Min: 15.26 Med: 17.12 Max: 21.39
Current: 16.92
During the past 13 years, Axos Financial's highest ROE % was 21.39%. The lowest was 15.26%. And the median was 17.12%.
AX's ROE % is ranked better than 86.68% of 1524
companies
in the Banks industry
Industry Median: 10.22
vs AX: 16.92
Axos Financial (NYSE:AX) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Axos Financial ROE % Related Terms
Axos Financial ROE % Historical Data
* Premium members only.
The historical data trend for Axos Financial's ROE % 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.
For the Banks - Regional subindustry, Axos Financial's ROE %, along with its competitors' market caps and ROE % 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.
Axos Financial ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Axos Financial's ROE % distribution charts can be found below:
* The bar in red indicates where Axos Financial's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Axos Financial (AX) has a ROE % of 16.64% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Axos Financial and its competitors. This is near median its historical median of 17.12. Over the past decade, Axos Financial's ROE % has ranged from 15.26 to 21.39. According to the industry distribution chart, Axos Financial ranks #203 out of 1524 companies in the Banks industry, placing it in the top 13.3%.
Is Axos Financial's ROE % too high?
Axos Financial's current ROE % of 16.64% is near median its 10-year median of 17.12. Over the past 10 years, this metric has ranged from a low of 15.26 to a high of 21.39. The Banks industry median ROE % is 10.22. Axos Financial's value of 16.64% is 62.8% above this industry median. Based on the distribution chart, Axos Financial ranks #203 out of 1524 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Axos Financial has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Axos Financial's ROE % compare to FINN and FFIN?
According to the Banks industry distribution chart, Axos Financial ranks #203 out of 1524 companies for ROE %. This places Axos Financial in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 10.22. Axos Financial's value of 16.64% is 62.8% above this benchmark. Historically, Axos Financial's own ROE % has ranged from 15.26 to 21.39 over the past decade. While the company's 10-year median is 17.12 vs. the industry median of 10.22, Axos Financial 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Axos Financial's current ROE % of 16.64% is 62.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Axos Financial and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axos Financial's current ROE % is 16.64%, which is near median its own 10-year median of 17.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axos Financial stock overvalued right now?
Based on GuruFocus' analysis, Axos Financial (AX) is currently considered Fairly Valued. The stock's GF Value™ is $87.69, compared to a current price of $94.35 — trading 7.6% above its estimated fair value. The current ROE % is 16.64%, which is near median its 10-year median of 17.12 and 62.8% above the Banks industry median of 10.22. Axos Financial'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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Axos Financial (AX), the current ROE % is 16.64% 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 Axos Financial (AX) Overvalued in 2026?
Based on GuruFocus' analysis, Axos Financial stock appears to be overvalued.
The current stock price of $94.35 is trading 7.6% above its estimated GF Value™ of $87.69.
GuruFocus considers Axos Financial to be Fairly Valued.
Key valuation signals for AX:
ROE %: 16.64% (near median its 10-year median of 17.12)
GF Value™: $87.69 vs. price of $94.35 (7.6% above fair value)
Industry Position: 62.8% above the Banks median (#203 of 1524)
No single metric tells the full story. See the AX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axos Financial Inc is a bank holding company that operates through its bank subsidiary, BofI Federal Bank, a nationwide bank that provides financing for single and multifamily residential properties, small to medium-size businesses in certain sectors, and selected specialty finance receivables. Its operating segments are banking business segment and securities business segment. The bank distributed its products through a wide range of retail distribution channels, including only banking brands, affinity groups, and sales teams, among others. The majority of the bank's mortgage exposure is titled toward the state of California, particularly its southern region. Net interest income is a majority of the bank's revenue.
85GF Score
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