Strong Gross Profit Margin
Healthy Net Profit Margin
Good Return on Equity
Strong Liquidity Ratios
Low Debt Levels
Strong Revenue Growth
Robust Customer Trust and Adoption
Diverse Customer Base
Innovative Product Development
Strong Future Bookings
Positive Market Trends
High Price-to-Earnings Ratio
Elevated Price-to-Sales Ratio
Low Operating Profit Margin
Low Cash Ratio
Political and Regulatory Risks
Overall, Axon demonstrates a strong business model with significant competitive advantages and a positive future outlook driven by innovation and a diverse customer base, despite facing some political risks.
Analysis Date: February 25, 2025
Last Updated: March 11, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$61.59
Current Market Price: $502.87
IV/P Ratio: 0.12x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-717.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for AXON
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (100.90)
P/B ratio ≤ 1.5 (16.31)
Current ratio ≥ 2.0 (2.30x)
Long-term debt < Net current assets (0.56x)
Margin of safety (-717.0%)
AXON does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
AXON demonstrates a solid net profit margin of 18.05%, showcasing effective cost management and strong profitability relative to its sales.
With a return on equity of 18.41%, AXON is effectively generating profit from its equity base, indicating strong performance in utilizing shareholder funds.
The operating profit margin is only 2.80%, suggesting that a large portion of revenue is consumed by operational costs, which could limit profitability growth.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
18.41%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
3.02%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
59.51%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
18.05%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
AXON's current ratio of 2.30 and quick ratio of 2.04 indicate solid liquidity, suggesting it can comfortably meet short-term obligations.
With a debt-to-equity ratio of 0.31 and a debt-to-assets ratio of 0.16, AXON has a manageable level of debt, reflecting strong financial health.
The cash ratio of 0.46 suggests that while liquidity is strong, there may be concerns regarding immediate cash availability to cover current liabilities.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.31x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.30x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Axon has demonstrated strong financial performance, achieving over $2 billion in revenue, nearly double the revenue reported two years ago, with consistent growth of over 30% for three consecutive years.
Axon's products have garnered strong customer feedback, which reflects a high level of trust and satisfaction. The TASER 10 has been particularly well-received, with orders outpacing the previous model by 2x.
The company has expanded its customer base beyond US state and local law enforcement, with significant international bookings growth, indicating a broadening market reach.
Axon is actively investing in new technologies, including AI, drones, and robotics, which are expected to drive future growth. The AI Era Plan has shown rapid adoption, indicating strong demand for innovative solutions.
Axon has a robust pipeline with over $10 billion in future contracted bookings, providing a solid foundation for sustained growth in the coming years.
The company is poised to benefit from major tech trends such as increased AI integration, connectivity, and enhanced public safety solutions, which are expected to expand their market opportunities.
Axon's investment in their headquarters is at risk due to political challenges in Arizona, which could impact their operational stability and growth strategy if not resolved.