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 has an excellent profitability rating, but there are some minor concerns on its financial health. AXTA has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years AXTA has been profitable.
Each year in the past 5 years AXTA had a positive operating cash flow.
1.2 Ratios
AXTA has a better Return On Assets (6.06%) than 83.53% of its industry peers.
The Return On Equity of AXTA (21.63%) is better than 91.76% of its industry peers.
The Return On Invested Capital of AXTA (10.48%) is better than 84.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXTA is in line with the industry average of 7.01%.
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
Looking at the Profit Margin, with a value of 8.56%, AXTA belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
AXTA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.73%, AXTA is in the better half of the industry, outperforming 78.82% of the companies in the same industry.
AXTA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 34.36%, AXTA is doing good in the industry, outperforming 68.24% of the companies in the same industry.
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 | 15.73% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AXTA is creating some value.
Compared to 1 year ago, AXTA has less shares outstanding
Compared to 5 years ago, AXTA has less shares outstanding
AXTA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.43 indicates that AXTA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.43, AXTA is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
AXTA has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as AXTA would need 8.40 years to pay back of all of its debts.
The Debt to FCF ratio of AXTA (8.40) is better than 65.88% 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.
The Debt to Equity ratio of AXTA (1.64) is worse than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.21
WACC8.68%
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 60.00% 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 69.41% 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.
AXTA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.47% yearly.
AXTA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.96%.
AXTA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.31% yearly.
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
AXTA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.61% yearly.
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 5Y9.61%
Revenue Next Year0.56%
Revenue Next 2Y1.95%
Revenue Next 3Y2.36%
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.
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 13.16.
Based on the Price/Earnings ratio, AXTA is valued a bit cheaper than 72.94% of the companies in the same industry.
AXTA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
AXTA is valuated reasonably with a Price/Forward Earnings ratio of 10.91.
Based on the Price/Forward Earnings ratio, AXTA is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AXTA to the average of the S&P500 Index (21.85), we can say AXTA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 10.91 |
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 61.18% 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 72.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.6 | ||
| EV/EBITDA | 8.8 |
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.
The excellent profitability rating of AXTA may justify a higher PE ratio.
PEG (NY)0.88
PEG (5Y)2.94
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 |
NYSE:AXTA (5/23/2025, 9:30:01 AM)
30.92
-0.65 (-2.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change3.16%
Ins Owners0.28%
Ins Owner Change5.8%
Market Cap6.76B
Analysts78.52
Price Target41.95 (35.67%)
Short Float %2.66%
Short Ratio2.39
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)-5.73%
PT rev (3m)-4.3%
EPS NQ rev (1m)-5.67%
EPS NQ rev (3m)-6.13%
EPS NY rev (1m)1.57%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)-2.23%
Revenue NQ rev (3m)-2.72%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.16 | ||
| Fwd PE | 10.91 | ||
| P/S | 1.29 | ||
| P/FCF | 16.6 | ||
| P/OCF | 11.9 | ||
| P/B | 3.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.8 |
EPS(TTM)2.35
EY7.6%
EPS(NY)2.83
Fwd EY9.17%
FCF(TTM)1.86
FCFY6.02%
OCF(TTM)2.6
OCFY8.41%
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 | 2.43 |
F-Score8
WACC8.68%
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 5Y9.61%
Revenue 1Y (TTM)0.96%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-2.47%
Revenue Next Year0.56%
Revenue Next 2Y1.95%
Revenue Next 3Y2.36%
Revenue Next 5Y1.58%
EBIT growth 1Y40.4%
EBIT growth 3Y15.45%
EBIT growth 5Y7.24%
EBIT Next Year38.52%
EBIT Next 3Y15.6%
EBIT Next 5Y9.6%
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%