Enterprise Value to FCFF (EV/FCFF)
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- Income Statement
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Free Cash Flow to The Firm (FCFF)
Axon Enterprise Inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The analyzed financial data reveals distinct trends in the company's cash flow performance over the five-year period ending in 2022.
- Net Cash Provided by Operating Activities
- This metric shows a general increasing trend over the period. Starting at $63,875 thousand in 2018, the value increased slightly to $65,673 thousand in 2019. However, there was a notable decline in 2020, where the cash provided dropped significantly to $38,481 thousand. Subsequently, this figure rebounded sharply to $124,494 thousand in 2021 and further more than doubled to $235,361 thousand in 2022. This pattern suggests recovery and strong operational cash generation after the 2020 decline.
- Free Cash Flow to the Firm (FCFF)
- The FCFF displayed more volatility across the same timeframe. Beginning at $52,178 thousand in 2018, it slightly decreased to $49,330 thousand in 2019. In 2020, a marked downturn occurred, resulting in a negative FCFF of -$34,294 thousand, indicating significant cash outflows or investments that exceeded operating cash inflows. Recovery ensued in 2021 with a positive FCFF of $74,259 thousand, followed by a substantial increase to $179,697 thousand in 2022. This recovery suggests improved cash generation and possible better capital expenditure management or lower investment outflows after the 2020 dip.
Overall, while the year 2020 was challenging with both operating cash flow and FCFF declining notably, the subsequent two years exhibited strong recovery and growth in cash flow generation. These trends may reflect operational improvements, effective cost controls, or favorable market conditions supporting cash inflows. The sizable increases in 2021 and 2022 highlight enhanced liquidity and may strengthen the company's financial flexibility going forward.
Interest Paid, Net of Tax
Axon Enterprise Inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
2 2022 Calculation
Contractual interest expense, tax = Contractual interest expense × EITR
= × =
Over the analyzed period, the effective income tax rate (EITR) exhibits significant fluctuations. In 2018, the rate stood at 21%, which then sharply increased in 2019 to 57.4% and further to 72.6% in 2020. Following this peak, the rate declined notably to 57.5% in 2021 and then fell substantially to 25.1% in 2022. This pattern suggests considerable variability in the company's tax expenses relative to its income during these years, with the highest tax burden occurring in 2020. The substantial decrease in 2022 may indicate changes in tax strategies, tax regulations, or profitability profiles.
Regarding contractual interest expense, net of tax, data is only available for 2022, with a recorded expense of US$158 thousand. The absence of data in prior years prevents trend analysis; however, the presence of interest expense in 2022 indicates the company incurred some interest-bearing obligations during that year.
- Effective income tax rate (EITR) trend
- Increased from 21% in 2018 to a peak of 72.6% in 2020 before decreasing to 25.1% in 2022.
- Contractual interest expense
- Recorded only in 2022 at US$158 thousand, indicating new or previously unreported interest expenses.
Enterprise Value to FCFF Ratio, Current
Axon Enterprise Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| EV/FCFF, Sector | |
| Capital Goods | |
| EV/FCFF, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Axon Enterprise Inc., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| EV/FCFF, Sector | ||||||
| Capital Goods | ||||||
| EV/FCFF, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated a consistent upward trend over the observed periods. Starting at approximately 2.9 billion US dollars in 2018, it increased significantly to around 4.3 billion by the end of 2019. In 2020, the value more than doubled to nearly 10 billion, before experiencing a slight decline in 2021 to approximately 9.1 billion. The trend reversed sharply in 2022, with the enterprise value reaching its highest point at approximately 14.3 billion US dollars. This indicates substantial growth in the company's overall valuation, particularly strong in the years 2020 and 2022.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm exhibited considerable volatility during the timeframe. It began at about 52.2 million US dollars in 2018, followed by a slight decrease to 49.3 million in 2019. In 2020, the company reported a negative FCFF of approximately -34.3 million, marking a significant shift. However, the situation improved markedly in 2021, with FCFF rebounding to around 74.3 million, and this positive momentum continued into 2022, where FCFF more than doubled the previous year’s figure to approximately 179.7 million US dollars. This pattern suggests operational challenges during 2020, followed by a strong recovery.
- Enterprise Value to Free Cash Flow to the Firm (EV/FCFF) Ratio
- The EV/FCFF ratio exhibited considerable fluctuations, reflecting changes in both valuation and cash flow performance. Starting from 55.87 in 2018, it increased significantly to 86.25 in 2019. The ratio is not available for 2020, likely due to the negative FCFF, which would make the ratio undefined or misleading. In 2021, the ratio peaked at 122.16, indicating that the enterprise value was very high relative to the free cash flow generated in that year. In 2022, the ratio declined to 79.55, suggesting an improvement in the relationship between valuation and cash flow, driven by the substantial increase in FCFF.