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

• Axos Financial's Return on Invested Capital (ROIC) of 25.26% significantly exceeds its Weighted Average Cost of Capital (WACC) of 18.89%, indicating efficient capital utilization.
• The company's ROIC to WACC ratio stands at 1.34, showcasing its superior ability to generate returns on invested capital compared to its cost.
• In comparison, peers like Ameris Bancorp, Cadence Bank, and others have ROIC to WACC ratios below 1, highlighting Axos Financial's competitive advantage in capital efficiency.

Axos Financial, Inc. (NYSE:AX) is a financial services company that provides banking products and services. It operates primarily through its digital banking platform, offering a range of services including personal banking, business banking, and lending solutions. In the competitive landscape, Axos Financial competes with other banks such as 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) is a key metric. Axos Financial boasts a ROIC of 25.26%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 18.89%. This indicates that the company is generating returns that exceed its cost of capital, a positive indicator of financial health and capital efficiency.

When comparing Axos Financial to its peers, the ROIC to WACC ratio is a useful measure. Axos Financial's ratio stands at 1.34, highlighting its superior ability to generate returns on its invested capital compared to its cost. This is in stark contrast to its peers, where none have a ratio exceeding 1, indicating they are not generating returns above their cost of capital.

For instance, Ameris Bancorp has a ROIC to WACC ratio of 0.80, while Cadence Bank, despite having the highest ratio among peers at 0.98, still does not surpass its WACC. BankUnited and Atlantic Union Bankshares have even lower ratios of 0.32 and 0.17, respectively, with Pacific Premier Bancorp showing a negative ratio of -0.20, indicating inefficiencies in capital utilization.

Overall, Axos Financial's ability to maintain a ROIC that surpasses its WACC sets it apart from its competitors, making it a potentially more attractive investment for those seeking efficient capital utilization.