AXALTA COATING SYSTEMS LTD (AXTA) Stock Fundamental Analysis
NYSE:AXTA - New York Stock Exchange, Inc. - BMG0750C1082 - Common Stock - Currency: USD
Overall AXTA gets a fundamental rating of 6 out of 10. We evaluated AXTA 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. This makes AXTA very considerable 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.
AXTA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.73%, AXTA belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
AXTA's Return On Equity of 19.69% is amongst the best of the industry. AXTA outperforms 89.41% of its industry peers.
With an excellent Return On Invested Capital value of 9.86%, AXTA belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
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 6.77%.
The 3 year average ROIC (7.99%) for AXTA is below the current ROIC(9.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 19.69% | ||
| ROIC | 9.86% |
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
AXTA has a Profit Margin of 8.58%. This is amongst the best in the industry. AXTA outperforms 83.53% of its industry peers.
In the last couple of years the Profit Margin of AXTA has grown nicely.
AXTA has a better Operating Margin (15.66%) than 78.82% of its industry peers.
AXTA's Operating Margin has improved in the last couple of years.
AXTA has a Gross Margin of 34.61%. This is in the better half of the industry: AXTA outperforms 68.24% of its industry peers.
In the last couple of years the Gross Margin of AXTA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.66% | ||
| PM (TTM) | 8.58% | ||
| GM | 34.61% |
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.
Compared to 1 year ago, AXTA has less shares outstanding
AXTA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AXTA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.26 indicates that AXTA is not a great score, but indicates only limited risk for bankruptcy at the moment.
AXTA has a Altman-Z score of 2.26. This is in the better half of the industry: AXTA outperforms 64.71% of its industry peers.
The Debt to FCF ratio of AXTA is 8.27, which is on the high side as it means it would take AXTA, 8.27 years of fcf income to pay off all of its debts.
AXTA's Debt to FCF ratio of 8.27 is fine compared to the rest of the industry. AXTA outperforms 67.06% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that AXTA has dependencies on debt financing.
AXTA's Debt to Equity ratio of 1.50 is on the low side compared to the rest of the industry. AXTA is outperformed by 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.16
WACC8.5%
2.3 Liquidity
AXTA has a Current Ratio of 2.12. This indicates that AXTA is financially healthy and has no problem in meeting its short term obligations.
AXTA's Current ratio of 2.12 is in line compared to the rest of the industry. AXTA outperforms 55.29% of its industry peers.
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 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.39% over the past year.
AXTA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.47% yearly.
Looking at the last year, AXTA shows a decrease in Revenue. The Revenue has decreased by -1.01% in the last year.
Measured over the past years, AXTA shows a small growth in Revenue. The Revenue has been growing by 3.31% on average per year.
EPS 1Y (TTM)25.39%
EPS 3Y10.28%
EPS 5Y4.47%
EPS Q2Q%12.28%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-3.4%
3.2 Future
Based on estimates for the next years, AXTA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.63% on average per year.
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 Y14.59%
EPS Next 2Y12.27%
EPS Next 3Y10.76%
EPS Next 5Y10.63%
Revenue Next Year0.22%
Revenue Next 2Y1.75%
Revenue Next 3Y2.22%
Revenue Next 5Y1.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.60 indicates a reasonable valuation of AXTA.
AXTA's Price/Earnings ratio is rather cheap when compared to the industry. AXTA is cheaper than 83.53% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. AXTA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.95 indicates a reasonable valuation of AXTA.
75.29% of the companies in the same industry are more expensive than AXTA, based on the Price/Forward Earnings ratio.
AXTA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 9.95 |
4.2 Price Multiples
67.06% of the companies in the same industry are more expensive than AXTA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AXTA is valued a bit cheaper than 74.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.86 | ||
| EV/EBITDA | 8.1 |
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)0.8
PEG (5Y)2.6
EPS Next 2Y12.27%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
No dividends for AXTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.08
+0.26 (+0.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.53%
Inst Owner Change0.01%
Ins Owners0.28%
Ins Owner Change5.8%
Market Cap6.14B
Analysts76.15
Price Target39.73 (41.49%)
Short Float %2.55%
Short Ratio2.21
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)4.57%
Min EPS beat(2)2.75%
Max EPS beat(2)6.38%
EPS beat(4)4
Avg EPS beat(4)9.29%
Min EPS beat(4)2.75%
Max EPS beat(4)15.06%
EPS beat(8)7
Avg EPS beat(8)9.26%
EPS beat(12)9
Avg EPS beat(12)6.53%
EPS beat(16)12
Avg EPS beat(16)6.57%
Revenue beat(2)0
Avg Revenue beat(2)-3.68%
Min Revenue beat(2)-4.18%
Max Revenue beat(2)-3.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.77%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)-1.58%
Revenue beat(8)0
Avg Revenue beat(8)-2.03%
Revenue beat(12)2
Avg Revenue beat(12)-1.62%
Revenue beat(16)3
Avg Revenue beat(16)-1.48%
PT rev (1m)-3.51%
PT rev (3m)-5.76%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)-3.76%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 9.95 | ||
| P/S | 1.18 | ||
| P/FCF | 14.86 | ||
| P/OCF | 10.3 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)2.42
EY8.62%
EPS(NY)2.82
Fwd EY10.05%
FCF(TTM)1.89
FCFY6.73%
OCF(TTM)2.73
OCFY9.71%
SpS23.78
BVpS10.36
TBVpS-3.1
PEG (NY)0.8
PEG (5Y)2.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 19.69% | ||
| ROCE | 12.77% | ||
| ROIC | 9.86% | ||
| ROICexc | 10.93% | ||
| ROICexgc | 22.37% | ||
| OM | 15.66% | ||
| PM (TTM) | 8.58% | ||
| GM | 34.61% | ||
| FCFM | 7.95% |
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-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 8.27 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 63.54% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.08% | ||
| Profit Quality | 92.6% | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 2.26 |
F-Score7
WACC8.5%
ROIC/WACC1.16
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)25.39%
EPS 3Y10.28%
EPS 5Y4.47%
EPS Q2Q%12.28%
EPS Next Y14.59%
EPS Next 2Y12.27%
EPS Next 3Y10.76%
EPS Next 5Y10.63%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-3.4%
Revenue Next Year0.22%
Revenue Next 2Y1.75%
Revenue Next 3Y2.22%
Revenue Next 5Y1.58%
EBIT growth 1Y24.87%
EBIT growth 3Y15.45%
EBIT growth 5Y7.24%
EBIT Next Year37.35%
EBIT Next 3Y15.1%
EBIT Next 5Y11.01%
FCF growth 1Y63.95%
FCF growth 3Y-0.08%
FCF growth 5Y-1.09%
OCF growth 1Y47.27%
OCF growth 3Y1.03%
OCF growth 5Y0.1%