Axos Financial, Inc. (NYSE:AX) Outperforms Peers in Capital Efficiency

Axos Financial, Inc. (NYSE:AX) is a leading financial services company that leverages its digital banking platform to offer a comprehensive range of banking products and services. It stands out in the competitive landscape, which includes notable names like Ameris Bancorp, Cadence Bank, BankUnited, Pacific Premier Bancorp, and Atlantic Union Bankshares Corporation.

In assessing the financial health and operational efficiency of Axos Financial, two critical metrics come into play: the Return on Invested Capital (ROIC) and the Weighted Average Cost of Capital (WACC). Axos boasts a ROIC of 27.10% and a WACC of 20.99%, culminating in a ROIC to WACC ratio of 1.29. This ratio is a clear indicator of Axos's ability to generate returns that significantly surpass its cost of capital, marking a positive signal for potential investors.

When compared to its peers, Axos Financial's performance is notably superior. Ameris Bancorp's ROIC and WACC figures stand at 0.64% and 14.73% respectively, leading to a ROIC to WACC ratio of 0.043. Cadence Bank follows a similar trend with a ROIC of 0.51% and a WACC of 11.46%, resulting in a ratio of 0.045. These ratios are significantly lower than that of Axos, indicating a less efficient use of capital.

Further analysis reveals that BankUnited, Inc. has a ROIC of 2.15% and a WACC of 12.60%, with a resulting ratio of 0.171. Pacific Premier Bancorp, Inc. reports a ROIC of 8.73% and a WACC of 13.55%, achieving a ratio of 0.645. Although these figures are an improvement over Ameris and Cadence, they still do not match the efficiency demonstrated by Axos.

On the other end of the spectrum, Atlantic Union Bankshares Corporation exhibits a negative ROIC of -0.02% against a WACC of 13.54%, leading to a ROIC to WACC ratio of -0.001. This negative ratio starkly contrasts with Axos's robust performance, underscoring the latter's superior capital efficiency and potential for investor returns.