AXALTA COATING SYSTEMS LTD (AXTA)

BMG0750C1082 - Common Stock

34.345  +0.06 (+0.19%)

Fundamental Rating

5

Taking everything into account, AXTA scores 5 out of 10 in our fundamental rating. AXTA was compared to 85 industry peers in the Chemicals industry. AXTA has an average financial health and profitability rating. AXTA has a decent growth rate and is not valued too expensively.



6

1. Profitability

1.1 Basic Checks

In the past year AXTA was profitable.
In the past year AXTA had a positive cash flow from operations.
In the past 5 years AXTA has always been profitable.
AXTA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a Return On Assets value of 3.68%, AXTA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.48%, AXTA is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.61%, AXTA is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AXTA is in line with the industry average of 7.53%.
The 3 year average ROIC (6.62%) for AXTA is below the current ROIC(7.61%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.68%
ROE 15.48%
ROIC 7.61%
ROA(3y)3.35%
ROA(5y)3.08%
ROE(3y)15.45%
ROE(5y)14.64%
ROIC(3y)6.62%
ROIC(5y)6.34%

1.3 Margins

Looking at the Profit Margin, with a value of 5.16%, AXTA is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
In the last couple of years the Profit Margin of AXTA has grown nicely.
The Operating Margin of AXTA (11.43%) is better than 64.71% of its industry peers.
In the last couple of years the Operating Margin of AXTA has declined.
The Gross Margin of AXTA (31.22%) is better than 64.71% of its industry peers.
AXTA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 11.43%
PM (TTM) 5.16%
GM 31.22%
OM growth 3Y4.08%
OM growth 5Y-2.38%
PM growth 3Y16.6%
PM growth 5Y3.18%
GM growth 3Y-3.03%
GM growth 5Y-1.61%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXTA is destroying 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 2.28. 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.
AXTA has a Altman-Z score (2.28) which is in line with its industry peers.
AXTA has a debt to FCF ratio of 8.01. This is a slightly negative value and a sign of low solvency as AXTA would need 8.01 years to pay back of all of its debts.
AXTA has a Debt to FCF ratio (8.01) which is in line with its industry peers.
AXTA has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
AXTA has a Debt to Equity ratio of 2.02. This is amonst the worse of the industry: AXTA underperforms 88.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.02
Debt/FCF 8.01
Altman-Z 2.28
ROIC/WACC0.96
WACC7.94%

2.3 Liquidity

A Current Ratio of 1.98 indicates that AXTA should not have too much problems paying its short term obligations.
The Current ratio of AXTA (1.98) is comparable to the rest of the industry.
A Quick Ratio of 1.46 indicates that AXTA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.46, AXTA is in line with its industry, outperforming 56.47% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 1.46

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.04% 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 4.14% on average per year.
Looking at the last year, AXTA shows a small growth in Revenue. The Revenue has grown by 6.14% in the last year.
Measured over the past years, AXTA shows a small growth in Revenue. The Revenue has been growing by 2.00% on average per year.
EPS 1Y (TTM)6.04%
EPS 3Y5.91%
EPS 5Y4.14%
EPS growth Q2Q13.16%
Revenue 1Y (TTM)6.14%
Revenue growth 3Y11.52%
Revenue growth 5Y2%
Revenue growth Q2Q4.9%

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 15.91% on average per year.
AXTA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.12% yearly.
EPS Next Y21.56%
EPS Next 2Y17.73%
EPS Next 3Y15.91%
EPS Next 5YN/A
Revenue Next Year2.77%
Revenue Next 2Y3.1%
Revenue Next 3Y3.12%
Revenue Next 5YN/A

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 accelerating.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 21.74 indicates a rather expensive valuation of AXTA.
The rest of the industry has a similar Price/Earnings ratio as AXTA.
AXTA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.42.
The Price/Forward Earnings ratio is 17.88, which indicates a rather expensive current valuation of AXTA.
Based on the Price/Forward Earnings ratio, AXTA is valued a bit cheaper than 63.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, AXTA is valued a bit cheaper.
Industry RankSector Rank
PE 21.74
Fwd PE 17.88

4.2 Price Multiples

AXTA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AXTA is cheaper than 61.18% of the companies in the same industry.
69.41% of the companies in the same industry are more expensive than AXTA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.29
EV/EBITDA 11.92

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AXTA has a very decent profitability rating, which may justify a higher PE ratio.
AXTA's earnings are expected to grow with 15.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)5.25
EPS Next 2Y17.73%
EPS Next 3Y15.91%

0

5. Dividend

5.1 Amount

No dividends for AXTA!.
Industry RankSector Rank
Dividend Yield N/A

AXALTA COATING SYSTEMS LTD

NYSE:AXTA (3/28/2024, 11:25:43 AM)

34.345

+0.06 (+0.19%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.56B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 21.74
Fwd PE 17.88
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.01
PEG (5Y)5.25
Profitability
Industry RankSector Rank
ROA 3.68%
ROE 15.48%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.43%
PM (TTM) 5.16%
GM 31.22%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 2.02
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.98
Quick Ratio 1.46
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.04%
EPS 3Y5.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.14%
Revenue growth 3Y11.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y