The growth of the EPS is critical in understanding the current valuation of Axos Financial. It is usually expressed as a percentage and is then referred to as the EPS growth rate, which is 10.00%. The long-term trend in EPS shows how well the management of Axos Financial is adding value for shareholders.



Axos Financial is part of the financial services sector and trades as part of the banking industry. The company CEO is Gregory Garrabrants. BofI Holding Inc is a financial services company operating through its subsidiary. It provides financing for single and multi-family residential properties, small to medium-size businesses in certain sectors, and selected specialty finance receivables.

Previous Intraday Performance:

The AX shares had a previous change of 2.03% which opened at 30.53 and closed at 31.20. It moved to an intraday high of 31.25 and a low of 30.53.

SeekingAlpha:  Financials rally, but still down YTD

Historical Performance:

Over the last five trading days, AX shares returned 4.21% and in the past 30 trading days it returned -4.99%. Over three months, it changed -16.82%. In one year it has changed 20.42% and within that year its 52-week high was 45.18 and its 52-week low was 26.56. AX stock is 17.47% above its 52 Week Low.

Our calculations result in a 200 day moving average of 38.14 and a 50 day moving average of 32.08. Right now, AX stock is trading -18.20% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

SeekingAlpha:  Financials rally, but still down YTD

Liquidity:

The company has a market cap of $2.0b with 62.8m shares outstanding and a float of 57.6m shares. Trading volume was 292,577 shares and has experienced an average volume of 462,186 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Axos Financial was 2.38 which ended on 30th of June 2018, which according to the previous close, that is a PE of 13.11. Based on 8 analyst estimates, the consensus EPS for the next quarter is 0.79. The trailing twelve month EPS is 2.40, which comes to a trailing twelve month PE of 13.00. Historically, the PE high was 37.00 and the PE low was 8.10. If the stock reached its PE low, that would represent a price of 19.44, which is a decrease of -37.69%.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.61
06-30-2018:  0.58
03-31-2018:  0.80
12-31-2017:  0.61

Base on our calculations, the intrinsic value per share is 47.25, which means it might be undervalued and has a margin of safety of 33.97%



Indicators Also to Watch:

Based on the latest filings, there is 8.30% of insider ownership and 124.20% of institutional ownership. Short-interest was 8,918,268, which was 14.19% of shares outstanding. The short-interest ratio or days-to-cover ratio was 18.80. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

I calculated the beta to be 0.39

PR Newswire:  Bancorp 34, Inc. Announces Adoption Of Repurchase Program

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 16.86%, return on assets is 1.70%, profit margin is 27.59%, price-to-sales is 3.38 and price-to-book is 1.97.

Company Score Card:

Results are out of six:
 4  : Growth Expectations Result
 5  : Financial Safety Result
 2  : Past Performance Result
 4  : Valuation Result
 0  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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