Over the past three months, Axonics Inc (AXNX, Financial) has experienced a remarkable surge in its stock price, with an 11.46% gain in just the past week and a 19.13% gain over the past three months. Currently, the market capitalization stands at $3.51 billion, with a stock price of $69.36. When compared to the GF Value of $102.31, Axonics is considered significantly undervalued, a sentiment that has remained consistent from the past GF Value of $103.31. This valuation suggests that investors may have an opportunity to capitalize on the stock's potential upside.
Introduction to Axonics Inc
Axonics Inc, operating within the Medical Devices & Instruments industry, is a U.S.-based medical technology company. It specializes in developing and commercializing innovative products for adults suffering from bladder and bowel dysfunctions. Their portfolio includes implantable sacral neuromodulation (SNM) systems for conditions such as urinary urge incontinence and urinary urgency frequency, as well as a urethral bulking agent for female stress urinary incontinence. SNM therapy is a cornerstone treatment for overactive bladder, fecal incontinence, and urinary retention, positioning Axonics at the forefront of this medical field.
Assessing Profitability
Despite its innovative product line, Axonics' Profitability Rank is currently at 3 out of 10. The company's operating margin stands at -3.15%, which is better than 45.55% of 821 companies in the industry. Its return on equity (ROE) is -2.06%, surpassing 47.23% of its peers, while the return on assets (ROA) at -1.84% is better than 49.25% of 867 companies. The return on invested capital (ROIC) is -3.21%, which is more favorable than 47.86% of 865 companies. These figures indicate that while Axonics is not currently leading in profitability, it is performing better than a significant portion of its competitors.
Growth Trajectory of Axonics
The company's Growth Rank is impressive at 8 out of 10. Axonics has demonstrated exceptional growth, with a 3-Year Revenue Growth Rate per Share of 129.70%, outperforming 96.94% of 720 companies. The 5-Year Revenue Growth Rate per Share is even more striking at 279.20%, surpassing 99.67% of 601 companies. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 19.52%, which is better than 81.48% of 162 companies. Additionally, the 3-Year EPS without NRI Growth Rate is 33.70%, and the 5-Year EPS without NRI Growth Rate is 11.90%, indicating a strong upward trajectory for the company's earnings.
Significant Shareholders in Axonics
Notable investors have taken significant positions in Axonics, with Ron Baron (Trades, Portfolio) holding 1,799,731 shares, representing 3.55% of the company. Steven Cohen (Trades, Portfolio) follows with 658,695 shares, accounting for 1.3%, and Jefferies Group (Trades, Portfolio) holds 291,066 shares, making up 0.57% of the company. These substantial investments by well-known investors underscore confidence in Axonics' potential and strategic direction.
Competitive Landscape
When compared to its competitors, Axonics holds its own in the market. LivaNova PLC (LIVN, Financial) has a market cap of $2.81 billion, iRhythm Technologies Inc (IRTC, Financial) is valued at $3.46 billion, and Integer Holdings Corp (ITGR, Financial) stands at $3.31 billion. Axonics' market cap of $3.51 billion places it in a competitive position within this close-knit group of medical device companies.
Conclusion
In conclusion, Axonics Inc's stock performance has been robust, with significant gains over the past quarter. The company's valuation, as indicated by the GF Value, suggests that the stock is significantly undervalued, presenting a potential opportunity for investors. Axonics' position in the medical devices industry is solid, with a strong growth trajectory and a portfolio of innovative products. While profitability metrics show room for improvement, the company's growth and the confidence shown by significant shareholders indicate a promising future. The comparative analysis with close competitors reveals that Axonics is well-positioned in terms of market capitalization, which could bode well for its continued success in the industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
