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Axos Financial's (NYSE:AX) investors will be pleased with their splendid 265% return over the last five years

Published 16 hours ago3 minute read

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. Long term (NYSE:AX) shareholders would be well aware of this, since the stock is up 265% in five years. Meanwhile the share price is 2.8% higher than it was a week ago.

So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.

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In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over half a decade, Axos Financial managed to grow its earnings per share at 21% a year. This EPS growth is slower than the share price growth of 30% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth

NYSE:AX Earnings Per Share Growth June 22nd 2025

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This interactive report on Axos Financial's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

We're pleased to report that Axos Financial shareholders have received a total shareholder return of 34% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 30% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Axos Financial is showing , you should know about...

There are plenty of other companies that have insiders buying up shares. You probably do want to miss this list of undervalued small cap companies that insiders are buying.

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