Axos Financial Inc (AX)

[vpagano]

I never thought I'd see the day Chevy goes GARP-y on banks! I do think you have a solid one here though.

BOFI has found its niche for growth in using tech, this is reflected in their strong ROA. All else equal leverage-wise, they should continue high ROE.

Slide 6 proves this operational leverage, w/ salaries at 50% of the peer groups and premise costs a third.

The key here is can they continue to grow assets? I believe w/ the acquisition of H&R Block assets they show commitment to inorganic moves to juice the organic growth that will occur from industry shifts. Millennials such as myself will stray further from traditional banking when the opportunity presents itself and technology will drive such changes.

I saw this today:

http://www.wsj.com/video/withdraw-cash-without-a-card-theres-an-app-for-that/84DF51B9-1FA1-40C9-9479-C92CA7B7811E.html

I will leave it up to you to decide what one would pay for such a scenario, I am not quire sure. Being conservative, if you take the most recent earnings and annualize, it is still only at 18x that earnings (solid for such growth). BV will be less relevant for peer multiples due to the "online" nature vs. traditional book and mortar.

-Pagz