Your thoughts on AXIS Auto Finance?

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AXIS stock price held its own or grown through these volatile times. What is its Market Cap, and does it have a favourable balance sheet? Does it have any similar peers in the market? I started watching it at 0.25. It just keeps going up.

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Asked on January 27, 2022 1:48 pm
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For sure this is a company that would outperform many small/nano cap options right now because of its exposure to the used car industry. This is a company that allows Canadians to buy and finance used vehicles.

It has a market cap of only $80M, much of which was acquired over the last year. It does however have some very nice growth, and even prior to the pandemic it was growing the top line at a pretty rapid pace.

My only concern for this one is when supply chains settle and used car sales inevitably drop. But if it can keep up growth, it's currently relatively cheap, trading at 8.6 times forward earnings and 1.5X sales. Keep in mind though these numbers are based off of a single analyst who is quite bullish.

Company is cheap, but is it trading at these valuations because we're likely to see a slowdown over the next while? It's a possibility.

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Posted by Dan Kent
Answered on January 30, 2022 11:03 am