📊 AX Key Takeaways
Investment Thesis
Axos Financial exhibits severe operational deterioration with revenue collapsing 96.4% YoY, indicating a major business disruption or accounting restatement rather than normal cyclical decline. While the company maintains positive profitability metrics and conservative leverage, the dramatic revenue decline combined with weak interest coverage ratio of 0.9x raises substantial solvency concerns that outweigh its modest free cash flow generation.
AX Strengths
- Conservative leverage with debt-to-equity ratio of only 0.11x providing financial flexibility
- Solid free cash flow generation of $194.7M with 19.9% FCF margin demonstrating cash conversion capability
- Maintained profitability with 24.6% net margin and $240.7M net income despite revenue collapse, suggesting cost structure adjustment
AX Risks
- Catastrophic 96.4% revenue decline YoY indicating fundamental business disruption or major accounting adjustment requiring investigation
- Dangerously low interest coverage ratio of 0.9x suggesting insufficient earnings to service debt obligations
- Asset quality concerns implicit in the revenue collapse; unclear if this reflects loan portfolio deterioration, portfolio sales, or accounting changes
Key Metrics to Watch
- Quarterly revenue trends to determine if decline is stabilizing or continuing
- Interest coverage ratio trajectory and debt service sustainability
- Loan portfolio composition and credit quality metrics (NPL ratios, charge-offs)
- Deposit base stability and funding sources given the savings institution business model
- Root cause of revenue collapse in 10-K disclosure
AX Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AX Profitability Ratios
AX vs Default Sector
How Axos Financial, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AX Balance Sheet & Liquidity
AX 5-Year Financial Trend
5-Year Trend Summary: Axos Financial, Inc.'s revenue has grown significantly by 95% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.07 reflects profitable operations.
AX Growth Metrics (YoY)
AX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2020 | $4.7M | $38.5M | $0.63 |
| Q2 2020 | $5.6M | $38.8M | $0.62 |
| Q1 2020 | $4.2M | $36.8M | $0.58 |
| Q3 2019 | $1.1M | $38.5M | $0.63 |
| Q2 2019 | $3.4M | $31.6M | $0.49 |
| Q1 2019 | $1.1M | $31.4M | $0.50 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AX Capital Allocation
AX SEC Filings
Access official SEC EDGAR filings for Axos Financial, Inc. (CIK: 0001299709)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AX
What is the AI rating for AX?
Axos Financial, Inc. (AX) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AX's key strengths?
Conservative leverage with debt-to-equity ratio of only 0.11x providing financial flexibility. Solid free cash flow generation of $194.7M with 19.9% FCF margin demonstrating cash conversion capability.
What are the risks of investing in AX?
Catastrophic 96.4% revenue decline YoY indicating fundamental business disruption or major accounting adjustment requiring investigation. Dangerously low interest coverage ratio of 0.9x suggesting insufficient earnings to service debt obligations.
What is AX's revenue and growth?
Axos Financial, Inc. reported revenue of $979.6M.
Does AX pay dividends?
Axos Financial, Inc. does not currently pay dividends.
Where can I find AX SEC filings?
Official SEC filings for Axos Financial, Inc. (CIK: 0001299709) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AX's EPS?
Axos Financial, Inc. has a diluted EPS of $4.17.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.