AXALTA COATING SYSTEMS LTD (AXTA) Stock Fundamental Analysis
NYSE:AXTA - BMG0750C1082 - Common Stock
30.84 USD
+0.04 (+0.13%)
AXTA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 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.
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
AXTA has a better Return On Assets (5.73%) than 84.34% of its industry peers.
AXTA has a better Return On Equity (19.69%) than 89.16% of its industry peers.
The Return On Invested Capital of AXTA (9.86%) is better than 84.34% of its industry peers.
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 6.34%.
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
AXTA's Profit Margin of 8.58% is amongst the best of the industry. AXTA outperforms 83.13% 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 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.
AXTA's Gross Margin has been stable in the last couple of years.
| 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.
AXTA has less shares outstanding than it did 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 2.32. 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 (2.32) is better than 63.86% 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.
A Debt/Equity ratio of 1.50 is on the high side and indicates that AXTA has dependencies on debt 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 | 2.32 |
ROIC/WACC1.14
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 in line with 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
The Earnings Per Share has grown by an impressive 25.39% over the past year.
The Earnings Per Share has been growing slightly by 4.47% on average over the past years.
The Revenue has decreased by -1.01% in the past 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 10.97% on average per year.
The Revenue is expected to grow by 1.58% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 12.74, which indicates a correct valuation of AXTA.
79.52% of the companies in the same industry are more expensive than AXTA, based on the Price/Earnings ratio.
AXTA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
With a Price/Forward Earnings ratio of 11.08, the valuation of AXTA can be described as very reasonable.
AXTA's Price/Forward Earnings ratio is rather cheap when compared to the industry. AXTA is cheaper than 80.72% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AXTA to the average of the S&P500 Index (22.48), we can say AXTA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
68.67% of the companies in the same industry are more expensive than AXTA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXTA indicates a somewhat cheap valuation: AXTA is cheaper than 74.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.17 | ||
| EV/EBITDA | 8.58 |
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)0.9
PEG (5Y)2.85
EPS Next 2Y11.48%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
AXTA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AXTA (9/4/2025, 10:54:09 AM)
30.84
+0.04 (+0.13%)
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 Change0.78%
Market Cap6.68B
Analysts76.15
Price Target38.48 (24.77%)
Short Float %2.99%
Short Ratio2.31
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)-3.14%
PT rev (3m)-8.27%
EPS NQ rev (1m)-1.8%
EPS NQ rev (3m)-5.49%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)-1.4%
Revenue NQ rev (3m)-2.98%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.08 | ||
| P/S | 1.28 | ||
| P/FCF | 16.17 | ||
| P/OCF | 11.21 | ||
| P/B | 2.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.58 |
EPS(TTM)2.42
EY7.85%
EPS(NY)2.78
Fwd EY9.03%
FCF(TTM)1.91
FCFY6.18%
OCF(TTM)2.75
OCFY8.92%
SpS24
BVpS10.46
TBVpS-3.13
PEG (NY)0.9
PEG (5Y)2.85
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 | 2.32 |
F-Score7
WACC8.65%
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%