Axos Financial, Inc. (NYSE:AX) boasts a Return on Invested Capital (ROIC) of 27.10% and a Weighted Average Cost of Capital (WACC) of 21.36%, indicating efficient capital use.
Comparative analysis shows Axos’s ROIC to WACC ratio of 1.27 significantly outperforms peers like Ameris Bancorp, Cadence Bank, and Atlantic Union Bankshares Corporation.
Competitors such as Ameris Bancorp, Cadence Bank, BankUnited, Pacific Premier Bancorp, and Atlantic Union Bankshares Corporation show lower efficiency in capital use, with some even having negative returns.
Axos Financial, Inc. (NYSE:AX) is a leading financial services company that provides a comprehensive range of banking products and services. Operating primarily through its subsidiary, Axos Bank, the company offers personalized and business banking solutions, positioning itself as a strong competitor against other financial institutions like Ameris Bancorp, Cadence Bank, BankUnited, Pacific Premier Bancorp, and Atlantic Union Bankshares Corporation.
In evaluating Axos Financial’s performance, the Return on Invested Capital (ROIC) of 27.10% and Weighted Average Cost of Capital (WACC) of 21.36% are key metrics. These figures result in a ROIC to WACC ratio of 1.27, showcasing that Axos is generating returns that significantly exceed its cost of capital, a positive indicator for investors.
When compared to its peers, Axos Financial stands out for its capital efficiency. Ameris Bancorp, for instance, has a ROIC of 0.64% and a WACC of 14.76%, leading to a ROIC to WACC ratio of 0.043. Similarly, Cadence Bank’s ROIC of 0.51% and WACC of 11.43% result in a ratio of 0.045. Both companies’ ratios are considerably lower than Axos’s, indicating less efficient use of capital.
Other competitors like BankUnited, Inc. and Pacific Premier Bancorp show somewhat better ratios of 0.171 and 0.645, respectively, but still fall short of Axos’s performance. Atlantic Union Bankshares Corporation, with a negative ROIC of -0.02% and a WACC of 13.61%, resulting in a ROIC to WACC ratio of -0.001, starkly contrasts with Axos’s strong efficiency, further highlighting Axos’s superior capital utilization.
