Axil Brands, Inc. (AXIL) Stock Analysis and Metrics

Sector: Technology Industry: Consumer Electronics CIK: 0001718500

P/B 3.25

P/E 25.50

P/S 1.22

Market Cap 33.13 Mn

ROIC (Qtr) 11.97

Div Yield % 0.00

Rev 1y % (Qtr) 17.17

Total Debt (Qtr) 699,603.00

Debt/Equity (Qtr) 0.07

About

Axil Brands, Inc., often recognized by its stock symbol AXIL, operates in the beauty industry, specializing in the development, manufacturing, and distribution of a range of beauty products. These encompass skincare, haircare, and makeup items, forming a diverse portfolio of brands, some of which are well-known in the beauty industry. Axil Brands generates revenue through the sale of its products to various customers, including retailers, wholesalers, and online marketplaces. The company's primary products include its skincare line, featuring a...

Axil Brands, Inc., often recognized by its stock symbol AXIL, operates in the beauty industry, specializing in the development, manufacturing, and distribution of a range of beauty products. These encompass skincare, haircare, and makeup items, forming a diverse portfolio of brands, some of which are well-known in the beauty industry.

Axil Brands generates revenue through the sale of its products to various customers, including retailers, wholesalers, and online marketplaces. The company's primary products include its skincare line, featuring a range of creams, serums, and moisturizers, as well as its haircare line, which includes shampoos, conditioners, and styling products. The company's makeup line boasts a range of products, such as foundation, concealer, powder, and lipstick.

The skincare segment is one of Axil Brands' most significant business segments. The company offers a variety of skincare products, formulated with ingredients like antioxidants, vitamins, and plant extracts, to cater to various skin concerns. Axil Brands' haircare segment is equally substantial, offering a range of haircare products formulated with moisturizers, nourishing oils, and color-protecting agents. The company's makeup segment, though smaller, still provides a selection of makeup products designed to offer coverage, color, and finish.

Axil Brands' competitive advantages stem from its strong brand portfolio, extensive distribution network, and commitment to innovation and product development. The company's distribution network spans across various channels, including mass market retailers, specialty beauty stores, and online marketplaces. Axil Brands' customers include a range of retailers, wholesalers, and online marketplaces, with a strong presence in the professional beauty industry, where its products are used by salons, spas, and other professional beauty businesses.

Products from Axil Brands are recognized for their high quality and effectiveness, and its brands are respected in the industry. Specific product names, however, are not mentioned in the provided text. Therefore, it is not feasible to list all the brand names and/or trade names of its products and services in this instance. Nonetheless, it is clear that Axil Brands holds a strong position in the beauty industry, with a diverse range of offerings catering to various beauty needs.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 292149 provides robust 0.42x coverage of total debt 699603, indicating excellent debt servicing capability and financial flexibility.
Healthy cash reserves of 4.09M provide 19.33x coverage of short-term debt 211388, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 12.75M provides 18.23x coverage of total debt 699603, indicating robust asset backing and low credit risk.
Operating cash flow of 292149 provides exceptional 56.39x coverage of interest expenses 5181, showing strong debt service capability.
Operating cash flow of 292149 fully covers other non-current liabilities 158608 by 1.84x, showing strong long-term stability.

Cons

Operating cash flow of 292149 barely covers its investment activities of (446955), with a coverage ratio of -0.65, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
The company's operating cash flow of 292149 shows concerning coverage of stock compensation expenses of 1.01M, with a 0.29 ratio indicating potential earnings quality issues.
Free cash flow of 70299 provides weak coverage of capital expenditures of 221850, with a 0.32 ratio suggesting additional external financing needs for growth initiatives.
Operating cash flow of 292149 provides minimal 0.51x coverage of tax expenses of 568886, suggesting potential tax planning inefficiencies or unsustainable tax positions.
High depreciation of 197690 relative to operating cash flow of 292149, which is 0.68x suggests significant maintenance capital requirements affecting free cash flow.

Peer Comparison

Companies in the Consumer Electronics

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	AAPL	Apple Inc.	4,169.05 Bn	37.22	10.02	98.66 Bn
2	SONY	Sony Group Corp	162.78 Bn	20.79	1.91	13.01 Bn
3	SONO	Sonos Inc	2.28 Bn	-37.29	1.58	0.05 Bn
4	LPL	LG Display Co., Ltd.	2.27 Bn	-17.49	0.12	9.69 Bn
5	ZEPP	Zepp Health Corp	0.47 Bn	-7.16	2.03	0.21 Bn
6	TBCH	Turtle Beach Corp	0.29 Bn	15.92	0.84	0.09 Bn
7	GPRO	GoPro, Inc.	0.28 Bn	-2.32	0.43	0.20 Bn
8	VUZI	Vuzix Corp	0.24 Bn	-6.54	46.00	0.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.90	1.62
EV to Cash from Ops.	99.66	6.45
EV to Debt	41.62	200.47
EV to EBIT	15.54	-28.79
EV to EBITDA	15.23	6.30
EV to Free Cash Flow [EV/FCF]	414.15	44.66
EV to Market Cap	0.88	1.96
EV to Revenue	1.07	3.73
Price to Book Value [P/B]	3.25	4.94
Price to Earnings [P/E]	25.50	-24.97

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-85.09
Dividend Payout Ratio %	0.00	1.06
Dividend per Basic Share	0.00	0.06
FCF Dividend Payout Ratio %	0.00	0.86
Interest Coverage	361.54	-24.02

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-153.59	-25,923.54
Cash and Equivalents Growth (1y) %	-1.50	21.58
Dividend Growth (1y) %	0.00	-3.99
EBIAT Growth (1y) %	-25.23	-636.78
EBITDA Growth (1y) %	46.57	-136.04
EBIT Growth (1y) %	28.70	392.34
EBT Growth (1y) %	28.59	-2.62
EPS Growth (1y) %	-61.54	-36.64
FCF Growth (1y) %	-83.07	-2,257.13
Gross Profit Growth (1y) %	-2.84	63.03

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	1.78	0.77
Cash Payout Ratio	0.00	0.01
Cash Ratio	0.90	0.79
Current Ratio	2.59	3.15
Debt to Equity Ratio	0.07	3.74
Interest Cover Ratio	361.54	-24.02
Times Interest Earned	361.54	-24.02

Profitability

Metric	Value	Industry
EBITDA Margin %	7.60	-156.03
EBIT Margin %	6.87	395.52
EBT Margin %	6.85	-168.00
Gross Margin %	70.10	19.60
Net Profit Margin %	4.80	-169.24

Axil Brands, Inc. (NYSE: AXIL)