AXALTA COATING SYSTEMS LTD (AXTA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXTA - BMG0750C1082 - Common Stock
30.13 USD
+0.37 (+1.24%)
30.13 USD
0 (0%)
Taking everything into account, AXTA scores 6 out of 10 in our fundamental rating. AXTA was compared to 81 industry peers in the Chemicals industry. AXTA has an excellent profitability rating, 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! 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.
In the past year AXTA had a positive cash flow from operations.
In the past 5 years AXTA has always been profitable.
Each year in the past 5 years AXTA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.86%, AXTA belongs to the top of the industry, outperforming 83.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.96%, AXTA belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.96%, AXTA belongs to the best of the industry, outperforming 82.72% 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 6.07%.
The last Return On Invested Capital (9.96%) for AXTA is above the 3 year average (7.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 19.96% | ||
| ROIC | 9.96% |
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's Profit Margin of 8.81% is amongst the best of the industry. AXTA outperforms 81.48% of its industry peers.
In the last couple of years the Profit Margin of AXTA has grown nicely.
Looking at the Operating Margin, with a value of 15.97%, AXTA belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
In the last couple of years the Operating Margin of AXTA has grown nicely.
The Gross Margin of AXTA (34.59%) is better than 70.37% 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 | 15.97% | ||
| PM (TTM) | 8.81% | ||
| GM | 34.59% |
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.
The number of shares outstanding for AXTA has been reduced compared to 1 year ago.
AXTA has less shares outstanding than it did 5 years ago.
AXTA has a better debt/assets ratio than last year.
2.2 Solvency
AXTA has an Altman-Z score of 2.33. 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.
AXTA has a Altman-Z score of 2.33. This is in the better half of the industry: AXTA outperforms 72.84% of its industry peers.
The Debt to FCF ratio of AXTA is 10.04, which is on the high side as it means it would take AXTA, 10.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AXTA (10.04) is better than 65.43% of its industry peers.
AXTA has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AXTA (1.49) is worse than 72.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 10.04 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.2
WACC8.27%
2.3 Liquidity
A Current Ratio of 2.20 indicates that AXTA has no problem at all paying its short term obligations.
AXTA has a Current ratio (2.20) which is in line with its industry peers.
A Quick Ratio of 1.59 indicates that AXTA should not have too much problems paying its short term obligations.
The Quick ratio of AXTA (1.59) is better than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
AXTA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.77%, 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.
Looking at the last year, AXTA shows a decrease in Revenue. The Revenue has decreased by -1.83% in the last year.
The Revenue has been growing slightly by 3.31% on average over the past years.
EPS 1Y (TTM)20.77%
EPS 3Y10.28%
EPS 5Y4.47%
EPS Q2Q%13.56%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-2.42%
3.2 Future
The Earnings Per Share is expected to grow by 10.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.68% on average over the next years.
EPS Next Y13.77%
EPS Next 2Y11.75%
EPS Next 3Y11.34%
EPS Next 5Y10.08%
Revenue Next Year-2.7%
Revenue Next 2Y-0.26%
Revenue Next 3Y0.85%
Revenue Next 5Y0.68%
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
With a Price/Earnings ratio of 12.05, AXTA is valued correctly.
AXTA's Price/Earnings ratio is a bit cheaper when compared to the industry. AXTA is cheaper than 76.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, AXTA is valued rather cheaply.
The Price/Forward Earnings ratio is 10.77, 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 76.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, AXTA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXTA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AXTA is valued a bit cheaper than the industry average as 69.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.25 | ||
| EV/EBITDA | 8.28 |
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)2.7
EPS Next 2Y11.75%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
AXTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.13
+0.37 (+1.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-0.1%
Ins Owners0.28%
Ins Owner Change0.46%
Market Cap6.43B
Revenue(TTM)5.17B
Net Income(TTM)455.00M
Analysts77.69
Price Target36.89 (22.44%)
Short Float %2.62%
Short Ratio1.48
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)2.59%
Min EPS beat(2)2.43%
Max EPS beat(2)2.75%
EPS beat(4)4
Avg EPS beat(4)6.65%
Min EPS beat(4)2.43%
Max EPS beat(4)15.06%
EPS beat(8)7
Avg EPS beat(8)7.53%
EPS beat(12)10
Avg EPS beat(12)6.99%
EPS beat(16)12
Avg EPS beat(16)5.94%
Revenue beat(2)0
Avg Revenue beat(2)-3.17%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)-3.16%
Revenue beat(4)0
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)-1.58%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)1
Avg Revenue beat(12)-1.98%
Revenue beat(16)3
Avg Revenue beat(16)-1.52%
PT rev (1m)-4.15%
PT rev (3m)-4.15%
EPS NQ rev (1m)-2.52%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)0.33%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-4.13%
Revenue NQ rev (3m)-4.9%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.77 | ||
| P/S | 1.26 | ||
| P/FCF | 19.25 | ||
| P/OCF | 12.11 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.28 |
EPS(TTM)2.5
EY8.3%
EPS(NY)2.8
Fwd EY9.28%
FCF(TTM)1.57
FCFY5.2%
OCF(TTM)2.49
OCFY8.26%
SpS23.85
BVpS10.52
TBVpS-2.91
PEG (NY)0.88
PEG (5Y)2.7
Graham Number24.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 19.96% | ||
| ROCE | 12.89% | ||
| ROIC | 9.96% | ||
| ROICexc | 11% | ||
| ROICexgc | 22.08% | ||
| OM | 15.97% | ||
| PM (TTM) | 8.81% | ||
| GM | 34.59% | ||
| FCFM | 6.56% |
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%
ROICexgc growth 3Y10.83%
ROICexgc 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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 10.04 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 68.73% | ||
| Cap/Sales | 3.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 48.3% | ||
| Profit Quality | 74.51% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 2.33 |
F-Score8
WACC8.27%
ROIC/WACC1.2
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)20.77%
EPS 3Y10.28%
EPS 5Y4.47%
EPS Q2Q%13.56%
EPS Next Y13.77%
EPS Next 2Y11.75%
EPS Next 3Y11.34%
EPS Next 5Y10.08%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y6.11%
Revenue growth 5Y3.31%
Sales Q2Q%-2.42%
Revenue Next Year-2.7%
Revenue Next 2Y-0.26%
Revenue Next 3Y0.85%
Revenue Next 5Y0.68%
EBIT growth 1Y21.11%
EBIT growth 3Y15.45%
EBIT growth 5Y7.24%
EBIT Next Year36.88%
EBIT Next 3Y14.35%
EBIT Next 5Y9.25%
FCF growth 1Y-12.22%
FCF growth 3Y-0.08%
FCF growth 5Y-1.09%
OCF growth 1Y0.77%
OCF growth 3Y1.03%
OCF growth 5Y0.1%
AXALTA COATING SYSTEMS LTD / AXTA FAQ
What is the fundamental rating for AXTA stock?
ChartMill assigns a fundamental rating of 6 / 10 to AXTA.
Can you provide the valuation status for AXALTA COATING SYSTEMS LTD?
ChartMill assigns a valuation rating of 7 / 10 to AXALTA COATING SYSTEMS LTD (AXTA). This can be considered as Undervalued.
Can you provide the profitability details for AXALTA COATING SYSTEMS LTD?
AXALTA COATING SYSTEMS LTD (AXTA) has a profitability rating of 9 / 10.
What are the PE and PB ratios of AXALTA COATING SYSTEMS LTD (AXTA) stock?
The Price/Earnings (PE) ratio for AXALTA COATING SYSTEMS LTD (AXTA) is 12.05 and the Price/Book (PB) ratio is 2.86.
How financially healthy is AXALTA COATING SYSTEMS LTD?
The financial health rating of AXALTA COATING SYSTEMS LTD (AXTA) is 5 / 10.