AXON ENTERPRISE, INC. (AXON) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q4 2025.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC -8.9%. FCF margin 2.7%. D/E 0.6x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	-8.9%	Below expectations
FCF Margin	2.7%	Cash flow pressure
Debt/Equity	0.6x	Moderate leverage

ROIC -8.9% — Bottom 10% of sector peers. FCF margin 2.7% — Bottom 50%.

Explore AXON ENTERPRISE, INC.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for AXON: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: AXON ENTERPRISE, INC. earns -8.9% ROIC

ROIC TTM -8.9%, sector median 7.3%. DuPont: NOPAT margin -14.7% × asset turnover 0.5x. Gross margin 59.7%. Operating margin -2.2%. Source: 10-Q filed 2025-11-05.

Metric	AXON	Rating	Context
Return on Invested Capital (ROIC)	-8.9%	Red flag	Below sector median of 7.3%
Return on Equity (ROE)	4.5%	Warning	Moderate equity returns
Gross Margin	59.7%	Excellent	Strong pricing power
Operating Margin	-2.2%	Warning	Moderate operational efficiency

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Cash Flow: AXON ENTERPRISE, INC. generates $75.1M FCF at 2.7% margin, positive NaN/8 quarters

FCF TTM $75.1M. FCF margin 2.7%, Bottom 50%. OCF/Net income 1.7x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	AXON	Rating	Context
Free Cash Flow Margin	2.7%	Warning	Thin cash margins
Free Cash Flow (TTM)	$75.1M	Good	Positive cash generation
OCF/Net Income	1.7x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: AXON ENTERPRISE, INC. at 0.6x leverage

Debt/Equity 0.6x. Total debt $1.8B, cash & investments $1.7B. Source: 10-Q filed 2025-11-05.

Metric	AXON	Rating	Context
Debt to Equity	0.6x	Good	Moderate leverage
Net Cash Position	$-91.9M	Adequate	Net debt position

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Valuation: AXON ENTERPRISE, INC. trades at 355.0x earnings

P/E 355.0x. EV/Sales 15.9x. FCF yield 0.2%. Source: 10-Q filed 2025-11-05.

Metric	AXON	Rating	Context
P/E Ratio	355.0x	Warning	Premium valuation
EV/Sales	15.9x	Warning	Growth premium priced in
FCF Yield	0.2%	Warning	Lower cash yield

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Capital Allocation: AXON ENTERPRISE, INC. returns 0.0% shareholder yield

Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-11-05.

Metric	AXON	Rating	Context
Total Shareholder Yield	0.0%	Warning	Dividend + buyback yield combined
Total Capital Returned (TTM)	$0	Adequate	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	-8.9%	Bottom 10%	-1.2x below
Free Cash Flow Margin	2.7%	Bottom 50%	0.6x below
Gross Margin	59.7%	Top 10%	1.8x above
Operating Margin	-2.2%	Bottom 10%	-0.3x below
Return on Equity (ROE)	4.5%	Bottom 50%	0.5x below
P/E Ratio	355.0x	N/A	-

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Financial Scorecard

Metric	AXON	Rating	Sector Context
Return on Invested Capital (ROIC)	-8.9%	Red flag	Below cost of capital
Free Cash Flow Margin	2.7%	Warning	Bottom 50% of sector (median: 4.8%)
Gross Margin	59.7%	Excellent	Top 10% of sector (median: 33.1%)
Debt to Equity Ratio	55.8%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	355.0x	Warning	High expectations priced in
Free Cash Flow Yield	0.2%	Red flag	Growth-focused valuation

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Frequently Asked Questions

Q: What is AXON ENTERPRISE, INC.'s Return on Invested Capital (ROIC)?

AXON ENTERPRISE, INC. (AXON) has a trailing twelve-month Return on Invested Capital (ROIC) of -8.9%. Sector median 7.3%. Source: 10-Q filed 2025-11-05.

Q: What is AXON ENTERPRISE, INC.'s Free Cash Flow Margin?

AXON ENTERPRISE, INC. (AXON) has a free cash flow margin of 2.7%, generating $75.1 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.

Q: What is AXON ENTERPRISE, INC.'s P/E ratio and how does it compare to peers?

AXON ENTERPRISE, INC. (AXON) trades at a P/E ratio of 355.0x, which is above the sector median of N/A. EV/Sales 15.9x. FCF yield 0.2%. Source: 10-Q filed 2025-11-05.

Q: How much debt does AXON ENTERPRISE, INC. have?

AXON ENTERPRISE, INC. (AXON) has a debt-to-equity ratio of 0.6x with total debt of $1.8 billion. Net debt $91.9 million. Source: 10-Q filed 2025-11-05.

Q: What is AXON ENTERPRISE, INC.'s revenue and earnings growth?

AXON ENTERPRISE, INC. (AXON) grew revenue by 33.5% year-over-year. EPS -68.3% YoY. Source: 10-Q filed 2025-11-05.

Q: How does AXON ENTERPRISE, INC. compare to competitors in Industrials?

Compared to other companies in Industrials, AXON ENTERPRISE, INC. (AXON) shows: ROIC -8.9%, sector median 7.3% (-1.2x). FCF margin 2.7%, sector median 4.8% (Bottom 50%). Gross margin 59.7%, 26.6pp above sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.

Q: What warning signs should I watch for with AXON ENTERPRISE, INC.?

Quantitative warning flags for AXON ENTERPRISE, INC. (AXON): 1) FCF margin 2.7% (below 5%); 2) ROIC declining -4.0% over 8 quarters. Source: 10-Q filed 2025-11-05.

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Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q4 2025.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.