AXALTA COATING SYSTEMS LTD (AXTA) Stock Fundamental Analysis
NYSE:AXTA - New York Stock Exchange, Inc. - BMG0750C1082 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AXTA. AXTA was compared to 85 industry peers in the Chemicals industry. AXTA scores excellent on profitability, but there are some minor concerns on its financial health. AXTA is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make AXTA suitable for value investing!
1. Profitability
1.1 Basic Checks
AXTA had positive earnings in the past year.
In the past year AXTA had a positive cash flow from operations.
In the past 5 years AXTA has always been profitable.
AXTA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.06%, AXTA belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
The Return On Equity of AXTA (21.63%) is better than 90.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.48%, AXTA belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AXTA is in line with the industry average of 6.84%.
The 3 year average ROIC (7.99%) for AXTA is below the current ROIC(10.48%), indicating increased profibility in the last year.
| 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
AXTA has a better Profit Margin (8.56%) than 81.18% of its industry peers.
In the last couple of years the Profit Margin of AXTA has grown nicely.
AXTA has a Operating Margin of 15.73%. This is in the better half of the industry: AXTA outperforms 78.82% of its industry peers.
In the last couple of years the Operating Margin of AXTA has grown nicely.
AXTA has a Gross Margin of 34.36%. This is in the better half 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AXTA is still creating some value.
Compared to 1 year ago, AXTA has less shares outstanding
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
An Altman-Z score of 2.39 indicates that AXTA is not a great score, but indicates only limited risk for bankruptcy at the moment.
AXTA has a better Altman-Z score (2.39) 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.
AXTA has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external 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 | 2.39 |
ROIC/WACC1.21
WACC8.65%
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 has a Current ratio (2.12) which is comparable to the rest of the industry.
A Quick Ratio of 1.53 indicates that AXTA should not have too much problems paying its short term obligations.
AXTA's Quick ratio of 1.53 is fine compared to the rest 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
The Earnings Per Share has grown by an impressive 37.43% over the past year.
The Earnings Per Share has been growing slightly by 4.47% on average over the past years.
Looking at the last year, AXTA shows a small growth in Revenue. The Revenue has grown by 0.96% 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)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
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 Y15.01%
EPS Next 2Y12.49%
EPS Next 3Y11.98%
EPS Next 5Y10.63%
Revenue Next Year0.5%
Revenue Next 2Y1.96%
Revenue Next 3Y2.4%
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
With a Price/Earnings ratio of 12.25, AXTA is valued correctly.
Based on the Price/Earnings ratio, AXTA is valued a bit cheaper than 78.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. AXTA is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.16, the valuation of AXTA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXTA indicates a somewhat cheap valuation: AXTA is cheaper than 71.76% of the companies listed in the same industry.
AXTA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 10.16 |
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 65.88% of the companies listed in the same industry.
AXTA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AXTA is cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.46 | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
AXTA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of AXTA may justify a higher PE ratio.
PEG (NY)0.82
PEG (5Y)2.74
EPS Next 2Y12.49%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
AXTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.79
-1.37 (-4.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change3.08%
Ins Owners0.28%
Ins Owner Change5.8%
Market Cap6.29B
Analysts77.78
Price Target41.32 (43.52%)
Short Float %2.32%
Short Ratio2.01
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)-1.52%
PT rev (3m)-8.21%
EPS NQ rev (1m)-5.78%
EPS NQ rev (3m)-6.24%
EPS NY rev (1m)1.57%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)-2.37%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 10.16 | ||
| P/S | 1.2 | ||
| P/FCF | 15.46 | ||
| P/OCF | 11.08 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.52 |
EPS(TTM)2.35
EY8.16%
EPS(NY)2.83
Fwd EY9.85%
FCF(TTM)1.86
FCFY6.47%
OCF(TTM)2.6
OCFY9.03%
SpS23.99
BVpS9.5
TBVpS-3.42
PEG (NY)0.82
PEG (5Y)2.74
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 | 2.39 |
F-Score8
WACC8.65%
ROIC/WACC1.21
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 Y15.01%
EPS Next 2Y12.49%
EPS Next 3Y11.98%
EPS Next 5Y10.63%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-2.47%
Revenue Next Year0.5%
Revenue Next 2Y1.96%
Revenue Next 3Y2.4%
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%