Ordnance & Accessories, (No Vehicles/Guided Missiles)
Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, Software and Sensors, and TASER. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include TASER 7, TASER X26P, TASER X2, TASER Consumer devices, and related cartridges; on-officer body cameras, Axon Fleet in-car systems, and other devices; Axon Evidence digital evidence management software-as-a-service; Axon Signal enabled devices, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. It sells its products through its direct sales force, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand the capabilities of Axon Respond and the Fusus Real-Time Crime Center in the Cloud solution to provide agencies real-time operations situational awareness. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.
Sector
Discounted Cash Flow Valuation of Axon Enterprise, Inc.
Growth
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Discount
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g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $162.3M | $191.6M | $223.5M | $257.3M | $292.6M | $328.4M | $363.9M | $398M | $429.4M | $457.1M | $480M | $4.8B |
DCF | $166.6M | $169M | $169.2M | $167.3M | $163.3M | $157.3M | $149.6M | $140.4M | $129.9M | $118.6M | $1.186B | |
Value | $2.718B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 10% | 6.4% | 1.5% | 7% | 0.17% | -0.25% | -7% | 12% | 11% | 16% |
ROA | 15% | 11% | 4.7% | 3.9% | 0.24% | -0.46% | -8.4% | 6.9% | 4.5% | 7.7% |
ROE | 13% | 11% | 3.1% | 6.2% | 0.16% | -0.18% | -5.7% | 12% | 11% | 14% |
The average Net Margin over the past 5 years is +3.9%.
The trend of Net Margin over the past 5 years is +1.45%.
The average ROA over the past 5 years is +1.12%.
The trend of ROA over the past 5 years is +0.43%.
The average ROE over the past 5 years is +3.82%.
The trend of ROE over the past 5 years is +1.47%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
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Debt FCF | 0.00 | - | - | - | - | - | - | 3.75 | 5.22 | 4.18 |
Debt Equity | 0.00 | - | - | - | - | - | - | 0.53 | 0.42 | 0.37 |
MIN | ||||||||||
Graham Stability | - | - | 27% | 100% | 5.1% | -15% | -630% | - | 100% | -630% |
The Debt/FCF trailing twelve month is 4.18.
The trend of Debt/FCF over the past 5 years is 1.47.
Graham’s Stability measure stands at -6.35.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
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Revenue | 29% | 30% | 32% | 31% | 0.91% |
Net Income | 39% | 43% | - | 18% | 2.3% |
Stockholders Equity | 40% | 28% | 18% | 27% | -0.17% |
FCF | 39% | 20% | - | -28% | 3.6% |
The Revenue CAGR over the past 5 years is +30.06%.
The trend of Revenue growth rate over the past 5 years is +0.91%.
The Earnings CAGR over the past 5 years is +42.93%.
The trend of Earnings growth rate over the past 5 years is +2.28%.
The Equity CAGR over the past 5 years is +28.1%.
The trend of Equity growth rate over the past 5 years is -0.17%.
The FCF CAGR over the past 5 years is +19.71%.
The trend of FCF growth rate over the past 5 years is +3.59%.