AXIS Capital Holdings Ltd.
Find Ratings ReportsAXIS CAPITAL HOLDINGS LTD's gross profit margin for the first quarter of its fiscal year 2018 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.
During the same period, stockholders' equity ("net worth") has decreased by 15.50% from the same quarter last year.
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| Income Statement | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Net Sales ($mil) | 1260.18 | 1008.53 |
| EBITDA ($mil) | 208.24 | 57.01 |
| EBIT ($mil) | 139.84 | 50.54 |
| Net Income ($mil) | 73.2 | 19.86 |
| Balance Sheet | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Cash & Equiv. ($mil) | 2208.81 | 1794.69 |
| Total Assets ($mil) | 25087.31 | 21246.97 |
| Total Debt ($mil) | 1376.84 | 993.23 |
| Equity ($mil) | 5264.4 | 6230.37 |
| Profitability | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Gross Profit Margin | 29.33 | 21.0 |
| EBITDA Margin | 16.52 | 5.65 |
| Operating Margin | 11.1 | 5.01 |
| Sales Turnover | 0.19 | 0.19 |
| Return on Assets | -1.25 | 2.28 |
| Return on Equity | -6.8 | 6.95 |
| Debt | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Current Ratio | 0.0 | 0.0 |
| Debt/Capital | 0.21 | 0.14 |
| Interest Expense | 16.76 | 12.79 |
| Interest Coverage | 8.34 | 3.95 |
| Share Data | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Shares outstanding (mil) | 83.52 | 85.17 |
| Div / share | 0.39 | 0.38 |
| EPS | 0.75 | 0.06 |
| Book value / share | 63.03 | 73.15 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 789182.0 | 1002384.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 0.88 indicates a significant discount versus the S&P 500 average of 3.25 and a discount versus the industry average of 1.86. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, AXIS CAPITAL HOLDINGS LTD proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
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Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AXS NM | Peers 18.63 | AXS 22.29 | Peers 18.70 | |||||||||||||||||||||
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Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. AXS's P/E is negative making this valuation measure meaningless. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AXS is trading at a premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| AXS 11.10 | Peers 13.87 | AXS NA | Peers 0.79 | |||||||||||||||||||||
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Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AXS is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| AXS 0.88 | Peers 1.86 | AXS -189.97 | Peers -84.86 | |||||||||||||||||||||
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Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AXS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, AXS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
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| AXS 0.96 | Peers 1.44 | AXS 16.92 | Peers 8.54 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AXS is trading at a significant discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. AXS has a sales growth rate that significantly exceeds its peers. |
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