AXALTA COATING SYSTEMS LTD (AXTA) Stock Fundamental Analysis
USA - NYSE:AXTA - BMG0750C1082 - Common Stock
28.99 USD
+0.76 (+2.69%)
28.99 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to AXTA. AXTA was compared to 82 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. These ratings could make AXTA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year AXTA was profitable.
AXTA had a positive operating cash flow in the past year.
AXTA had positive earnings in each of the past 5 years.
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 5.86%, AXTA belongs to the best of the industry, outperforming 84.15% 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 89.02% 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 82.93% 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 6.23%.
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 has a Profit Margin of 8.81%. This is amongst the best in the industry. AXTA outperforms 82.93% of its industry peers.
In the last couple of years the Profit Margin of AXTA has grown nicely.
The Operating Margin of AXTA (15.97%) is better than 80.49% of its industry peers.
In the last couple of years the Operating Margin of AXTA has grown nicely.
AXTA has a Gross Margin of 34.59%. This is in the better half of the industry: AXTA outperforms 68.29% 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.
Compared to 1 year ago, AXTA has less shares outstanding
AXTA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AXTA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.30 indicates that AXTA is not a great score, but indicates only limited risk for bankruptcy at the moment.
AXTA has a Altman-Z score of 2.30. This is in the better half of the industry: AXTA outperforms 65.85% 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.
Looking at the Debt to FCF ratio, with a value of 10.04, AXTA is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
A Debt/Equity ratio of 1.49 is on the high side and indicates that AXTA has dependencies on debt financing.
The Debt to Equity ratio of AXTA (1.49) is worse than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 10.04 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.22
WACC8.18%
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 of 2.20. This is comparable to the rest of the industry: AXTA outperforms 59.76% of its industry peers.
AXTA has a Quick Ratio of 1.59. This is a normal value and indicates that AXTA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AXTA (1.59) is better than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.77% over the past year.
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.
AXTA shows a decrease in Revenue. In the last year, the revenue decreased by -1.83%.
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.
Based on estimates for the next years, AXTA will show a small growth in Revenue. The Revenue will grow by 0.68% on average per year.
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
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
Based on the Price/Earnings ratio of 11.60, the valuation of AXTA can be described as reasonable.
78.05% of the companies in the same industry are more expensive than AXTA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.83, AXTA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.36, the valuation of AXTA can be described as reasonable.
Based on the Price/Forward Earnings ratio, AXTA is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
AXTA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
AXTA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AXTA is cheaper than 65.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AXTA is valued a bit cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.52 | ||
| EV/EBITDA | 7.98 |
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)0.84
PEG (5Y)2.59
EPS Next 2Y11.75%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
No dividends for AXTA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.99
+0.76 (+2.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change-0.63%
Ins Owners0.28%
Ins Owner Change0.46%
Market Cap6.28B
Revenue(TTM)5.17B
Net Income(TTM)455.00M
Analysts77.69
Price Target36.95 (27.46%)
Short Float %2.21%
Short Ratio1.42
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)-3.98%
PT rev (3m)-6.99%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-4.27%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 10.36 | ||
| P/S | 1.22 | ||
| P/FCF | 18.52 | ||
| P/OCF | 11.65 | ||
| P/B | 2.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.98 |
EPS(TTM)2.5
EY8.62%
EPS(NY)2.8
Fwd EY9.65%
FCF(TTM)1.57
FCFY5.4%
OCF(TTM)2.49
OCFY8.59%
SpS23.85
BVpS10.52
TBVpS-2.91
PEG (NY)0.84
PEG (5Y)2.59
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 | 2.3 |
F-Score8
WACC8.18%
ROIC/WACC1.22
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 11.6 and the Price/Book (PB) ratio is 2.75.
How financially healthy is AXALTA COATING SYSTEMS LTD?
The financial health rating of AXALTA COATING SYSTEMS LTD (AXTA) is 5 / 10.