AXONAXON
US • —
$568.45
P/E
227.55
PEG
—
FCF Yield
—
Rev Growth YoY
+34.0% YoY
Gross Margin
59.3%
Health Score
6/10
D/E Ratio
0.56
Confidence
MEDIUM
Business Snapshot
Axon develops and sells technology and weapons products for law enforcement, including body cameras, in-car video systems, and Tasers. It operates in the law enforcement technology market, where it holds a strong competitive position due to the widespread adoption of its evidence management software and devices. The company is a large-cap player with TTM revenue that has grown significantly, though the exact figure is not available in the provided data. A key defining characteristic is its subscription-based recurring revenue model and a growing software ecosystem that creates high switching costs for customers.
Financial Health
Axon's gross margin of 59.3% indicates a solid pricing power within its hardware and software offerings. The net margin of 6.9% is decent, but the comparison to the prior year is not available, so the trend is unclear...
Risk Assessment
- VALUATION — P/E of 227.55x is over 10x the sector average of 22x, representing an extreme valuation premium with little room for error.
- EARNINGS QUALITY — Earnings growth of -39.6% YoY directly contradicts the strong revenue growth, suggesting declining profitability and potential margin pressure.
- INSIDER SELLING — 10 insider sells against 0 buys over the last 90 days signals a lack of confidence from those with the deepest knowledge of the company.
- TECHNICALS — RSI, MACD, and moving average data are not available for this period; momentum cannot be independently confirmed....
Axon's gross margin of 59.3% indicates a solid pricing power within its hardware and software offerings. The net margin of 6.9% is decent, but the comparison to the prior year is not available, so the trend is unclear. The balance sheet appears healthy, with a manageable debt-to-equity ratio of 0.56x and a strong current ratio of 2.53x, indicating ample short-term liquidity to cover obligations. Free cash flow data is not available in the payload, preventing an assessment of the company's cash generation or burn rate. Overall, Axon has a sound balance sheet with low leverage, which supports its ability to reinvest in growth, but the lack of free cash flow data limits a full evaluation of its financial efficiency.
- VALUATION — P/E of 227.55x is over 10x the sector average of 22x, representing an extreme valuation premium with little room for error. - EARNINGS QUALITY — Earnings growth of -39.6% YoY directly contradicts the strong revenue growth, suggesting declining profitability and potential margin pressure. - INSIDER SELLING — 10 insider sells against 0 buys over the last 90 days signals a lack of confidence from those with the deepest knowledge of the company. - TECHNICALS — RSI, MACD, and moving average data are not available for this period; momentum cannot be independently confirmed.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives