AXA SA
🇫🇷 CS.PA · Paris · FR0000120628
Insurance
EUR 40.51 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
8.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 40.51 ÷ 4.69 = 8.6
TTM period through: 2025-12-31
Forward P/E (estimated): 9.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.8
Yield (Fwd)
5.73%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 5.78%
Payout (Fwd)
49.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 48.3%
Cash Flow Payout (TTM): 22.0%
FCF Coverage (TTM): 4.45x
ROE
13.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
AXA is a premium global insurance provider offering essential financial services with exceptional cash flow generation and profitability. Trading at €40.51, the stock sits below our estimated fair value range of €46-56, representing a 13-38% upside to fair value, making it worth considering for new positions. The highly secure 5.8% dividend yield, backed by a massive 4.45x free cash flow coverage, provides excellent income while investors wait for the broader market to recognize its underlying value.
Sector Context
AXA SA is a leading global insurance and asset management company, providing life, health, property, and casualty insurance to individuals and businesses. As an essential financial service, insurance provides predictable, recurring premium revenue that generates massive 'float' for investment. In the current environment, insurers can often adjust premiums to match inflation, though they must actively manage claim cost increases and investment portfolio volatility.
Temporary Opportunity Identified
Broader macroeconomic volatility, rising inflation fears, and geopolitical tensions in the Middle East are creating a cautious market environment, disproportionately suppressing the valuations of European financials despite strong underlying cash flows.
📊 Strategy Analysis
- • Trading at an attractive P/E of 8.6, well within the ideal 8-15x range, suggesting undervaluation relative to the company's strong fundamentals.
- • Exceptional dividend safety with a 5.8% yield supported by a 62% earnings payout ratio and an incredibly strong 22% cash flow payout ratio (FCF coverage of 4.45x).
- • Strong financial health indicated by a conservative Debt/Equity ratio of 0.33x and a robust Return on Equity of 13.4%.
- • Demonstrated earnings resilience with a 5-year EPS CAGR of 8.9% and no quarters with negative earnings over the last two years.
⚠ What to Watch
- • Global macroeconomic volatility, including persistent inflation and Middle East geopolitical tensions, could impact investment portfolio returns and near-term market sentiment.
- • Long-term revenue growth has been relatively flat (-0.9% 10-year CAGR), indicating that earnings growth relies heavily on margin improvements rather than organic top-line expansion.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.