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

Sector: Technology Industry: Consumer Electronics CIK: 0001718500

Market Cap 48.85 Mn

P/B 4.41

P/E 35.65

P/S 1.77

ROIC (Qtr) 12.92

Div Yield % 0.00

Rev 1y % (Qtr) 5.20

Total Debt (Qtr) 642,684.00

Debt/Equity (Qtr) 0.06

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.

Price action

Investment thesis

Bull case

Healthy cash reserves of 4.98M provide 24.06x coverage of short-term debt 206855, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 13.66M provides 21.26x coverage of total debt 642684, indicating robust asset backing and low credit risk.
Operating cash flow of 220094 provides exceptional 42.42x coverage of interest expenses 5189, showing strong debt service capability.
Operating cash flow of 220094 fully covers other non-current liabilities 145234 by 1.52x, showing strong long-term stability.
Retained earnings of 1.76M provide full 4.04x coverage of long-term debt 435829, indicating strong internal capital position.

Bear case

Operating cash flow of 220094 barely covers its investment activities of (422016), with a coverage ratio of -0.52, 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 220094 shows concerning coverage of stock compensation expenses of 886704, with a 0.25 ratio indicating potential earnings quality issues.
Free cash flow of 35583 provides weak coverage of capital expenditures of 184511, with a 0.19 ratio suggesting additional external financing needs for growth initiatives.
Operating cash flow of 220094 provides minimal 0.30x coverage of tax expenses of 734751, suggesting potential tax planning inefficiencies or unsustainable tax positions.
High depreciation of 230764 relative to operating cash flow of 220094, which is 1.05x 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.	3,878.78 Bn	34.63	9.32	98.66 Bn
2	SONY	Sony Group Corp	150.52 Bn	19.23	1.76	13.01 Bn
3	LPL	LG Display Co., Ltd.	2.14 Bn	-16.47	0.11	9.69 Bn
4	SONO	Sonos Inc	1.99 Bn	-32.61	1.38	0.05 Bn
5	ZEPP	Zepp Health Corp	0.42 Bn	-6.30	1.78	0.21 Bn
6	TBCH	Turtle Beach Corp	0.26 Bn	14.29	0.75	0.09 Bn
7	VUZI	Vuzix Corp	0.26 Bn	-6.90	48.49	0.00 Bn
8	GPRO	GoPro, Inc.	0.23 Bn	-1.92	0.36	0.20 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	2.80	1.60
EV to Cash from Ops. EV/CFO	206.56	12.05
EV to Debt EV to Debt	70.74	190.88
EV to EBIT EV/EBIT	21.54	-26.74
EV to EBITDA EV/EBITDA	20.90	5.01
EV to Free Cash Flow [EV/FCF] EV/FCF	1,277.66	91.29
EV to Market Cap EV to Market Cap	0.93	4.51
EV to Revenue EV/Rev	1.64	3.74
Price to Book Value [P/B] P/B	4.41	4.74
Price to Earnings [P/E] P/E	35.65	-22.81

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Div Coverage (Qtr)	0.00	-85.09
Dividend Payout Ratio % Div Payout % (Qtr)	0.00	1.06
Dividend per Basic Share Div per Share (Qtr)	0.00	0.06
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	0.00	0.86
Interest Coverage Int. cover (Qtr)	406.67	-21.34

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	-38.33	-25,917.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	-4.56	24.14
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	-3.99
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	1.10	-460.09
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	202.13	-135.96
EBIT Growth (1y) % EBIT 1y % (Qtr)	172.79	574.68
EBT Growth (1y) % EBT 1y % (Qtr)	172.96	39.32
EPS Growth (1y) % EPS 1y % (Qtr)	-55.56	-8.06
FCF Growth (1y) % FCF 1y % (Qtr)	-93.17	-2,232.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	1.26	60.40

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	1.70	0.77
Cash Payout Ratio Cash Payout (Qtr)	0.00	0.01
Cash Ratio Cash Ratio (Qtr)	1.09	0.81
Current Ratio Curr Ratio (Qtr)	2.75	3.16
Debt to Equity Ratio Debt/Equity (Qtr)	0.06	3.74
Interest Cover Ratio Int Coverage (Qtr)	406.67	-21.34
Times Interest Earned Times Interest Earned (Qtr)	406.67	-21.34

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	8.50	-156.08
EBIT Margin % EBIT Margin % (Qtr)	7.63	393.83
EBT Margin % EBT Margin % (Qtr)	7.61	-168.19
Gross Margin % Gross Margin % (Qtr)	69.30	19.36
Net Profit Margin % Net Margin % (Qtr)	5.00	-169.48

Research Tools

Axil Brands, Inc. (NYSE: AXIL)

About

Price action

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

Research Tools

Axil Brands, Inc. (NYSE: AXIL)

About

Price action

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

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