Last Updated: 11 Nov 2024
Executive Summary
Axon Enterprise Inc. (AXON) is a leading provider of conducted energy weapons (CEWs) and body cameras for law enforcement and security personnel. The company has a strong financial position with high revenue growth and profitability. Analysts are bullish on the stock, with a consensus price target of $522.61.
Company Overview
Axon Enterprise was founded in 1993 and is headquartered in Scottsdale, Arizona. The company's products include TASER CEWs, body cameras, cloud-based evidence management software, and training services. Axon's CEWs are used by over 18,000 law enforcement agencies in the United States and internationally. The company's body cameras are used by over 2,000 law enforcement agencies in the United States.
Fundamental Analysis
Axon Enterprise has a strong financial position. The company's revenue has grown at a compound annual growth rate (CAGR) of 20% over the past five years. In 2023, the company reported revenue of $1.94 billion and net income of $168 million. Axon's gross profit margin is 38%, and its operating margin is 4%. The company's return on assets (ROA) is 2%, and its return on equity (ROE) is 16%.
Axon Enterprise has a strong balance sheet. The company has $500 million in cash and equivalents and no debt. The company's current ratio is 2.0, and its quick ratio is 1.5.
Technical Analysis
Axon Enterprise's stock price has been in a strong uptrend since the beginning of 2023. The stock price is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 65, which indicates that the stock is overbought.
Short Term Outlook
Axon Enterprise's stock price is expected to continue to rise in the short term. The company's strong financial performance and positive analyst sentiment are expected to drive the stock price higher.
Long Term Outlook
Axon Enterprise is well-positioned for long-term growth. The company's products are in high demand, and the company has a strong financial position. Axon Enterprise is expected to continue to grow its revenue and profitability in the years to come.
Analyst Recommendations
Analysts are bullish on Axon Enterprise's stock. The consensus price target is $522.61, which represents a 15% upside from the current stock price. Six analysts have a "Strong Buy" rating on the stock, eight analysts have a "Buy" rating, two analysts have a "Hold" rating, and no analysts have a "Sell" or "Strong Sell" rating.
