Axos Financial - A Fintech Company at an Inflection Point

Axos Financial is an exclusively online bank that was one of the first in the now popular banking fintech space. Axos has made strategic acquisitions to expand the company into a banking service, clearing broker, and Robo-advisor. They have begun a consolidation of the Robo-advisor into the banking app with plans of adding a stock trading platform into their invest feature this year. This all-in-one finance app is exactly what the consumers have been asking for and Axos could be putting together a new leader in the space cause a massive shift in the company back to a fintech leader. The current transition has frustrated Axos Invest users as the transition has been slow and clunky. This could cause a short-term impact on the company but the Axos Invest platform doesn't have many users and its integration into the main banking app will lead to further adoption. Axos has had earnings 50x since 2008 with only 2 individual quarters having negative YoY growth, revenue has had a similar trend growing 25x and not having a negative YoY growth in revenue since the 1st quarter of 2011. This incredibly strong performance has been overlooked as they have not had the returns that others have had because of the high valuation. since 2014 the stock has doubled from the peak and eps and sales per share have 4x. Currently trading at 14 ttm and fwd pe they are cheap given their strong history of growth. When compared to companies like Sofi who offers similar services but with a few more bells and whistles Axos looks like a steal. Trading at 3.8x revenue while Sofi is trading at 23x revenue although they are growing noticeably faster. When looking ahead, Sofi is trading at 4x self-projected 2025 revenue, while Axos is trading at around 2.8x 2025 revenue. This provides a great opportunity for value investors to be able to invest in fintech companies without having to abandon their goals of safety and profitability. Axos currently pays out a 3% yield via stock buybacks and has committed to continuing that trend going forward. Axos may be of an average value for a normal bank, they are massively undervalued for a fintech company and I believe that the fintech revolution will help propel Axos to become a top banking and investing institution going forward.

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Axos Financial - A Fintech Company at an Inflection Point

Apr 6, 2021

bullish

fundamentals Analysis

[1 min Read]

Axos Financial is an exclusively online bank that was one of the first in the now popular banking fintech space. Axos has made strategic acquisitions to expand the company into a banking service, clearing broker, and Robo-advisor. They have begun a consolidation of the Robo-advisor into the banking app with plans of adding a stock trading platform into their invest feature this year. This all-in-one finance app is exactly what the consumers have been asking for and Axos could be putting together a new leader in the space cause a massive shift in the company back to a fintech leader. The current transition has frustrated Axos Invest users as the transition has been slow and clunky. This could cause a short-term impact on the company but the Axos Invest platform doesn't have many users and its integration into the main banking app will lead to further adoption. Axos has had earnings 50x since 2008 with only 2 individual quarters having negative YoY growth, revenue has had a similar trend growing 25x and not having a negative YoY growth in revenue since the 1st quarter of 2011. This incredibly strong performance has been overlooked as they have not had the returns that others have had because of the high valuation. since 2014 the stock has doubled from the peak and eps and sales per share have 4x. Currently trading at 14 ttm and fwd pe they are cheap given their strong history of growth. When compared to companies like Sofi who offers similar services but with a few more bells and whistles Axos looks like a steal. Trading at 3.8x revenue while Sofi is trading at 23x revenue although they are growing noticeably faster. When looking ahead, Sofi is trading at 4x self-projected 2025 revenue, while Axos is trading at around 2.8x 2025 revenue. This provides a great opportunity for value investors to be able to invest in fintech companies without having to abandon their goals of safety and profitability. Axos currently pays out a 3% yield via stock buybacks and has committed to continuing that trend going forward. Axos may be of an average value for a normal bank, they are massively undervalued for a fintech company and I believe that the fintech revolution will help propel Axos to become a top banking and investing institution going forward.

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AX

Axos Financial, Inc.

36.10

0
0.00%

Return

-24.73%
Change % Since Posting
-11.86
Change Since Posting
47.96
Price When Posted

Metrics

60.00
Target Price
10/ 10
Confidence
3+ Years
Timeframe
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Earnings Per Share
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Financials
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Management
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Price to Earnings Ratio
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Dividend
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Other Catalyst

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