AXALTA COATING SYSTEMS LTD (AXTA) Stock Fundamental Analysis
USA - NYSE:AXTA - BMG0750C1082 - Common Stock
28.44 USD
-0.75 (-2.57%)
28.44 USD
0 (0%)
Taking everything into account, AXTA scores 6 out of 10 in our fundamental rating. AXTA was compared to 83 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on AXTA. With these ratings, AXTA could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
AXTA had positive earnings in the past year.
AXTA had a positive operating cash flow in the past year.
AXTA had positive earnings in each of the past 5 years.
Each year in the past 5 years AXTA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AXTA (5.73%) is better than 84.34% of its industry peers.
The Return On Equity of AXTA (19.69%) is better than 89.16% of its industry peers.
AXTA has a Return On Invested Capital of 9.86%. This is amongst the best in the industry. AXTA outperforms 84.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AXTA is in line with the industry average of 6.34%.
The last Return On Invested Capital (9.86%) for AXTA is above the 3 year average (7.99%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 8.58%, AXTA belongs to the best of the industry, outperforming 83.13% of the companies in the same industry.
In the last couple of years the Profit Margin of AXTA has grown nicely.
AXTA has a Operating Margin of 15.66%. This is in the better half of the industry: AXTA outperforms 79.52% of its industry peers.
AXTA's Operating Margin has improved in the last couple of years.
The Gross Margin of AXTA (34.61%) is better than 68.67% 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
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
The number of shares outstanding for AXTA has been reduced compared to 5 years ago.
Compared to 1 year ago, AXTA has an improved debt to assets ratio.
2.2 Solvency
AXTA has an Altman-Z score of 2.28. 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 (2.28) is better than 60.24% of its industry peers.
AXTA has a debt to FCF ratio of 8.27. This is a slightly negative value and a sign of low solvency as AXTA would need 8.27 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.27, AXTA is doing good in the industry, outperforming 72.29% of the companies in the same industry.
AXTA has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
AXTA has a Debt to Equity ratio of 1.50. This is in the lower half of the industry: AXTA underperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.14
WACC8.67%
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 54.22% 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.
Looking at the Quick ratio, with a value of 1.53, AXTA is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
| 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 25.39%, which is quite impressive.
Measured over the past 5 years, AXTA shows a small growth in Earnings Per Share. The EPS has been growing by 4.47% on average per year.
Looking at the last year, AXTA shows a decrease in Revenue. The Revenue has decreased by -1.01% in the last year.
The Revenue has been growing slightly by 3.31% on average over the past years.
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 10.97% 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 Y14.15%
EPS Next 2Y11.48%
EPS Next 3Y10.89%
EPS Next 5Y10.97%
Revenue Next Year-1.04%
Revenue Next 2Y0.94%
Revenue Next 3Y1.68%
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
Based on the Price/Earnings ratio of 11.75, the valuation of AXTA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AXTA indicates a rather cheap valuation: AXTA is cheaper than 80.72% of the companies listed in the same industry.
AXTA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
The Price/Forward Earnings ratio is 10.22, which indicates a very decent valuation of AXTA.
AXTA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AXTA is cheaper than 79.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AXTA to the average of the S&P500 Index (22.80), we can say AXTA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXTA is valued a bit cheaper than the industry average as 68.67% of the companies are valued more expensively.
AXTA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AXTA is cheaper than 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 8.27 |
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.
AXTA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.83
PEG (5Y)2.63
EPS Next 2Y11.48%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
No dividends for AXTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.44
-0.75 (-2.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.77%
Inst Owner Change-1.2%
Ins Owners0.28%
Ins Owner Change0.46%
Market Cap6.16B
Analysts76.15
Price Target38.48 (35.3%)
Short Float %3.58%
Short Ratio2.83
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)-0.29%
PT rev (3m)-6.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.22 | ||
| P/S | 1.18 | ||
| P/FCF | 14.91 | ||
| P/OCF | 10.33 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.27 |
EPS(TTM)2.42
EY8.51%
EPS(NY)2.78
Fwd EY9.79%
FCF(TTM)1.91
FCFY6.71%
OCF(TTM)2.75
OCFY9.68%
SpS24
BVpS10.46
TBVpS-3.13
PEG (NY)0.83
PEG (5Y)2.63
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 | 2.28 |
F-Score7
WACC8.67%
ROIC/WACC1.14
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 Y14.15%
EPS Next 2Y11.48%
EPS Next 3Y10.89%
EPS Next 5Y10.97%
Revenue 1Y (TTM)-1.01%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-3.4%
Revenue Next Year-1.04%
Revenue Next 2Y0.94%
Revenue Next 3Y1.68%
Revenue Next 5Y1.58%
EBIT growth 1Y24.87%
EBIT growth 3Y15.45%
EBIT growth 5Y7.24%
EBIT Next Year37.24%
EBIT Next 3Y14.5%
EBIT Next 5Y10.86%
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%