AXALTA COATING SYSTEMS LTD (AXTA) Stock Fundamental Analysis
NYSE:AXTA - New York Stock Exchange, Inc. - BMG0750C1082 - Common Stock - Currency: USD
AXTA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While AXTA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AXTA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make AXTA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year AXTA was profitable.
In the past year AXTA had a positive cash flow from operations.
Each year in the past 5 years AXTA has been profitable.
In the past 5 years AXTA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.06%, AXTA belongs to the top of the industry, outperforming 84.71% of the companies in the same industry.
With an excellent Return On Equity value of 21.63%, AXTA belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
The Return On Invested Capital of AXTA (10.48%) is better than 85.88% of its industry peers.
AXTA had an Average Return On Invested Capital over the past 3 years of 7.99%. This is in line with the industry average of 6.84%.
The last Return On Invested Capital (10.48%) for AXTA is above the 3 year average (7.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.06% | ||
| ROE | 21.63% | ||
| ROIC | 10.48% |
ROA(3y)3.93%
ROA(5y)3.43%
ROE(3y)16.37%
ROE(5y)15.06%
ROIC(3y)7.99%
ROIC(5y)7.07%
1.3 Margins
With an excellent Profit Margin value of 8.56%, AXTA belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
AXTA's Profit Margin has improved in the last couple of years.
AXTA has a better Operating Margin (15.73%) than 78.82% of its industry peers.
AXTA's Operating Margin has improved in the last couple of years.
AXTA's Gross Margin of 34.36% is fine compared to the rest of the industry. AXTA outperforms 68.24% of its industry peers.
AXTA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.73% | ||
| PM (TTM) | 8.56% | ||
| GM | 34.36% |
OM growth 3Y8.8%
OM growth 5Y3.79%
PM growth 3Y7.44%
PM growth 5Y5.93%
GM growth 3Y1.74%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
AXTA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AXTA has been reduced compared to 1 year ago.
Compared to 5 years ago, AXTA has less shares outstanding
The debt/assets ratio for AXTA has been reduced compared to a year ago.
2.2 Solvency
AXTA has an Altman-Z score of 2.41. This is not the best score and indicates that AXTA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of AXTA (2.41) is better than 65.88% of its industry peers.
The Debt to FCF ratio of AXTA is 8.40, which is on the high side as it means it would take AXTA, 8.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AXTA (8.40) is better than 67.06% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that AXTA has dependencies on debt financing.
AXTA has a Debt to Equity ratio of 1.64. This is amonst the worse of the industry: AXTA underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.22
WACC8.56%
2.3 Liquidity
A Current Ratio of 2.12 indicates that AXTA has no problem at all paying its short term obligations.
AXTA has a Current ratio (2.12) which is comparable to the rest of the industry.
AXTA has a Quick Ratio of 1.53. This is a normal value and indicates that AXTA is financially healthy and should not expect problems in meeting its short term obligations.
AXTA has a Quick ratio of 1.53. This is in the better half of the industry: AXTA outperforms 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
AXTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.43%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.47% on average over the past years.
The Revenue has been growing slightly by 0.96% in the past year.
The Revenue has been growing slightly by 3.31% on average over the past years.
EPS 1Y (TTM)37.43%
EPS 3Y10.28%
EPS 5Y4.47%
EPS Q2Q%22.92%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-2.47%
3.2 Future
The Earnings Per Share is expected to grow by 10.63% on average over the next years. This is quite good.
Based on estimates for the next years, AXTA will show a small growth in Revenue. The Revenue will grow by 1.58% on average per year.
EPS Next Y14.86%
EPS Next 2Y12.55%
EPS Next 3Y11.99%
EPS Next 5Y10.63%
Revenue Next Year0.43%
Revenue Next 2Y1.93%
Revenue Next 3Y2.36%
Revenue Next 5Y1.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AXTA is valuated correctly with a Price/Earnings ratio of 13.14.
Based on the Price/Earnings ratio, AXTA is valued a bit cheaper than 77.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, AXTA is valued rather cheaply.
The Price/Forward Earnings ratio is 10.88, which indicates a very decent valuation of AXTA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXTA indicates a somewhat cheap valuation: AXTA is cheaper than 74.12% of the companies listed in the same industry.
AXTA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 10.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXTA indicates a somewhat cheap valuation: AXTA is cheaper than 67.06% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXTA indicates a somewhat cheap valuation: AXTA is cheaper than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 8.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AXTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.88
PEG (5Y)2.94
EPS Next 2Y12.55%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
AXTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.87
-0.37 (-1.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change3.08%
Ins Owners0.28%
Ins Owner Change5.8%
Market Cap6.75B
Analysts77.78
Price Target41.17 (33.37%)
Short Float %2.57%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.72%
Min EPS beat(2)6.38%
Max EPS beat(2)15.06%
EPS beat(4)4
Avg EPS beat(4)10.9%
Min EPS beat(4)6.38%
Max EPS beat(4)15.06%
EPS beat(8)6
Avg EPS beat(8)7.65%
EPS beat(12)9
Avg EPS beat(12)6.43%
EPS beat(16)12
Avg EPS beat(16)6.55%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-4.18%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.27%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)-1.17%
Revenue beat(8)0
Avg Revenue beat(8)-2.27%
Revenue beat(12)2
Avg Revenue beat(12)-1.59%
Revenue beat(16)4
Avg Revenue beat(16)-1.15%
PT rev (1m)-1.86%
PT rev (3m)-7.8%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-6.4%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 10.88 | ||
| P/S | 1.29 | ||
| P/FCF | 16.58 | ||
| P/OCF | 11.88 | ||
| P/B | 3.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.66 |
EPS(TTM)2.35
EY7.61%
EPS(NY)2.84
Fwd EY9.19%
FCF(TTM)1.86
FCFY6.03%
OCF(TTM)2.6
OCFY8.42%
SpS23.99
BVpS9.5
TBVpS-3.42
PEG (NY)0.88
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.06% | ||
| ROE | 21.63% | ||
| ROCE | 13.57% | ||
| ROIC | 10.48% | ||
| ROICexc | 11.57% | ||
| ROICexgc | 23.73% | ||
| OM | 15.73% | ||
| PM (TTM) | 8.56% | ||
| GM | 34.36% | ||
| FCFM | 7.76% |
ROA(3y)3.93%
ROA(5y)3.43%
ROE(3y)16.37%
ROE(5y)15.06%
ROIC(3y)7.99%
ROIC(5y)7.07%
ROICexc(3y)8.98%
ROICexc(5y)8.17%
ROICexgc(3y)18.89%
ROICexgc(5y)17.47%
ROCE(3y)10.36%
ROCE(5y)9.19%
ROICexcg growth 3Y10.83%
ROICexcg growth 5Y5.46%
ROICexc growth 3Y13.92%
ROICexc growth 5Y4.88%
OM growth 3Y8.8%
OM growth 5Y3.79%
PM growth 3Y7.44%
PM growth 5Y5.93%
GM growth 3Y1.74%
GM growth 5Y-0.48%
F-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 8.4 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 57.09% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.31% | ||
| Profit Quality | 90.65% | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 2.41 |
F-Score8
WACC8.56%
ROIC/WACC1.22
Cap/Depr(3y)49.94%
Cap/Depr(5y)42.77%
Cap/Sales(3y)2.8%
Cap/Sales(5y)2.67%
Profit Quality(3y)116.56%
Profit Quality(5y)173.32%
High Growth Momentum
Growth
EPS 1Y (TTM)37.43%
EPS 3Y10.28%
EPS 5Y4.47%
EPS Q2Q%22.92%
EPS Next Y14.86%
EPS Next 2Y12.55%
EPS Next 3Y11.99%
EPS Next 5Y10.63%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-2.47%
Revenue Next Year0.43%
Revenue Next 2Y1.93%
Revenue Next 3Y2.36%
Revenue Next 5Y1.58%
EBIT growth 1Y40.4%
EBIT growth 3Y15.45%
EBIT growth 5Y7.24%
EBIT Next Year37.35%
EBIT Next 3Y15.1%
EBIT Next 5Y11.01%
FCF growth 1Y199.05%
FCF growth 3Y-0.08%
FCF growth 5Y-1.09%
OCF growth 1Y98.67%
OCF growth 3Y1.03%
OCF growth 5Y0.1%