AXIL Brands Inc. Common Stock (AXIL)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that produce cash and sell at a discount to intrinsic value. AXIL is a tiny consumer-electronics and personal-care company, with 13 employees, selling hearing protection, audio gear, and hair/skin products globally. In fiscal Q1 2027, the quarter ended 2026-08-31, revenue was $6.1M, net income $420,571, and diluted EPS $0.05; a year earlier, in fiscal Q1 2026, revenue was $6.9M, net income $334,294, and EPS $0.04. So sales fell while profit rose. For FY2026, ended 2026-05-31, revenue was $30.8M, net income $2.7M, and EPS $0.33, versus FY2025 revenue $26.3M, net income $854,988, and EPS $0.10. That profit rebound is real, but FY2024 had revenue $27.5M and net income $2.0M, so the record is uneven. FairStock's Lynch category is STALWART—steady growth: profit 13.9% a year over three years, revenue 9.5%. The balance sheet looks conservative: D/E 0.04 and Altman Z-Score 6.61. Returns are decent: ROE 23.67%, ROCE 11.83%. But free cash flow is negative at -$219,984 TTM and FCF yield -0.6%, which matters. At the 2026-10-13 close of $5.81, FairStock calculations show P/E 17.61, P/B 3.01, EV/EBITDA 10.50, Graham Number $3.79, and margin of safety -53.30%. That is not a Graham bargain; the price exceeds the conservative value estimate. A PEG of 0.03 is cheap only if future growth proves durable. Piotroski 4/9 and FairStock score 30/100 keep me cautious. I see a small, debt-light operator with improving profits but no obvious moat and no cash cushion in FCF. Price looks full absent sustained cash generation.

In plain English: AXIL Brands makes hearing protection and audio products, plus some hair and skin care items, and sells them in several countries. It is a small company with little debt and improving profits, but its sales have been uneven and it is not turning those profits into cash. At $5.81 a share, the price looks full compared with the company's earnings and net assets, and it is above the conservative value number shown.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-31) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer