Axon Boosting VR Training Expertise; Stock Still Expensive

Connected public safety technology provider Axon Enterprise, Inc. (AXON) has acquired Foundry 45, which is a virtual reality studio that develops immersive training modules for enterprises. Foundry 45 will be integrated with the VR team at Axon.

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Foundry counts a number of Fortune 100 companies among its customers, and its VR experiences aim to improve productivity, which augments knowledge retention.

Management Weighs In

The VP of Immersive Technologies at Axon, Chris Chin, commented, “We are thrilled the Foundry 45 team has joined Axon in our mission to Protect Life. Their team of accomplished enterprise VR training experts are a great addition to Axon and I am excited to join forces and level up our public safety training capabilities to make communities safer for all.”

As VR becomes a game-changer training tool across industries, the addition of Foundry will enable Axon to provide innovative skills and scenario-based training while also boosting its expansion in new growth markets across the globe.

Hedge Fund Activity

According to TipRanks data, Wall Street’s top hedge funds decreased holdings in Axon by 78,300 shares in the last quarter, indicating a very negative hedge fund confidence signal in the stock based on the activities of five hedge funds.

Valuation Speaks

Let us consider some key metrics for Axon and how it fares against the broader industry. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin is negative 17.3%, which lags the industry median of 13.2%. Meanwhile, a levered free cash flow margin of 9.4% implies that Axon is more efficient in generating free cash flow than the broader industry, where the median figure is 4.2%.

Finally, with a forward non-GAAP P/E ratio of 66.97, Axon shares are currently priced at an expensive level versus the broader industry, where the median figure is 17.3.

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