Axalta Coating Systems (AXTA) AI Stock Analysis

• Market Cap: $6.88B
• Dividend Yield: N/A
• Average Volume (3M): 4.57M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.86
• Revenue Growth: -1.83%
• EPS Growth: 40.64%
• Country: US
• Employees: 12,900
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.67
• Shares Outstanding: 213,340,160
• 10 Day Avg. Volume: 4,711,299
• 30 Day Avg. Volume: 4,566,705
• PEG Ratio: 0.41
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 17.21
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 5.36
• 1Y Price Target: $35.75
• Price Target Upside: 10.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.5
• Revenue Forecast (FY): $5.12B

• Rating: 77 Outperform
• Price Target: $36.00 ▲(11.52% Upside)

Axalta Coating Systems is well-positioned with strong financial performance and technical indicators showing bullish momentum. The merger with Akzo Nobel presents a strategic opportunity for growth and value creation. However, challenges in revenue growth and softer demand temper the outlook.

Positive Factors

Merger with Akzo Nobel

The merger with Akzo Nobel is expected to create significant value through cost synergies and expanded market reach, enhancing long-term growth prospects.

Debt Reduction

Significant debt reduction enhances financial stability and flexibility, allowing for strategic investments and resilience against economic fluctuations.

Operational Efficiency

Strong operational efficiency, as evidenced by record EBITDA margins, indicates effective cost management and robust profitability, supporting long-term growth.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining market demand, which could impact future growth and profitability if not addressed.

Free Cash Flow Decline

A decline in free cash flow generation may limit the company's ability to reinvest in growth opportunities and manage financial obligations effectively.

North American Market Challenges

Challenges in the North American market, particularly in Performance Coatings, could hinder overall sales growth and market position if persistent.

Axalta Coating Systems Business Overview & Revenue Model

Company Description

Axalta Coating Systems (AXTA) is a leading global supplier of liquid and powder coatings, serving a diverse range of industries including automotive, industrial, and architectural sectors. The company offers a wide portfolio of high-performance coatings that enhance the appearance and durability of products, catering to both original equipment manufacturers (OEMs) and aftermarket customers. Axalta is known for its innovative technologies and sustainable solutions, focusing on providing advanced coating systems that meet the evolving needs of its clients.

How the Company Makes Money

Axalta generates revenue primarily through the sale of its coating products, which are categorized into several key segments: automotive coatings, industrial coatings, and architectural coatings. The automotive segment, which includes OEM and refinish products, is a significant contributor to its revenue, driven by demand for vehicle manufacturing and repair. The industrial segment encompasses coatings for various applications, including general industrial, transportation, and protective coatings. Additionally, Axalta offers value-added services such as color matching and technical support, which enhance customer loyalty and recurring revenue. The company benefits from strategic partnerships with major automotive manufacturers and industrial firms, allowing it to leverage its technological expertise and expand its market presence. Overall, Axalta's focus on innovation, customer relationships, and operational efficiency plays a crucial role in its revenue generation.

Axalta Coating Systems Financial Statement Overview

Summary

Axalta Coating Systems demonstrates strong profitability and operational efficiency with solid margins and a high return on equity. The significant reduction in debt enhances financial stability, although the negative revenue and free cash flow growth rates pose potential risks. Overall, the company maintains a strong financial position with room for improvement in growth metrics.

Income Statement

Axalta Coating Systems shows a strong gross profit margin of 34.11% for TTM, indicating efficient production processes. The net profit margin improved to 8.81% in TTM, reflecting better cost management and profitability. However, the revenue growth rate is negative at -0.62% for TTM, suggesting a decline in sales compared to the previous period. The EBIT and EBITDA margins are solid at 15.66% and 21.29% respectively, indicating strong operational efficiency.

Balance Sheet

The company has significantly reduced its debt, with a debt-to-equity ratio of 0.009 in TTM, indicating a very low leverage and strong financial stability. The return on equity is robust at 21.33%, showcasing effective use of equity to generate profits. The equity ratio stands at 29.37%, suggesting a balanced capital structure with a healthy proportion of equity financing.

Cash Flow

Operating cash flow to net income ratio is 0.40, showing adequate cash generation relative to net income. Free cash flow to net income ratio is 0.63, indicating a healthy conversion of profits into free cash flow. However, the free cash flow growth rate is negative at -18.31% for TTM, highlighting a decline in free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.17B	5.28B	5.18B	4.88B	4.42B	3.74B
Gross Profit	1.76B	1.80B	1.62B	1.42B	1.43B	1.28B
EBITDA	1.04B	981.00M	844.00M	700.00M	791.20M	592.40M
Net Income	455.00M	391.00M	267.00M	192.00M	263.90M	121.60M
Balance Sheet
Total Assets	7.76B	7.25B	7.27B	7.06B	7.22B	7.16B
Cash, Cash Equivalents and Short-Term Investments	610.00M	593.00M	703.10M	654.90M	840.60M	1.36B
Total Debt	3.40B	3.52B	3.61B	3.81B	3.86B	4.00B
Total Liabilities	5.43B	5.29B	5.50B	5.56B	5.68B	5.68B
Stockholders Equity	2.28B	1.91B	1.73B	1.45B	1.49B	1.43B
Cash Flow
Free Cash Flow	339.00M	436.00M	437.40M	142.90M	437.00M	427.20M
Operating Cash Flow	539.00M	576.00M	575.30M	293.80M	558.60M	509.30M
Investing Cash Flow	-188.00M	-440.00M	-205.70M	-106.40M	-716.00M	-61.50M
Financing Cash Flow	-306.00M	-201.00M	-315.00M	-368.90M	-334.50M	-130.90M

Axalta Coating Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXTA, the sentiment is Positive. The current price of 32.28 is above the 20-day moving average (MA) of 30.43, above the 50-day MA of 29.35, and above the 200-day MA of 30.41, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 69.74 is Neutral, neither overbought nor oversold. The STOCH value of 91.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXTA.

Axalta Coating Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	77 Outperform	$6.88B	15.48	21.75%	―	-1.83%	40.64%
EMN	72 Outperform	$7.22B	10.42	12.24%	5.33%	-3.33%	-19.59%
RPM	71 Outperform	$13.50B	19.68	24.05%	1.96%	3.09%	12.25%
PPG	67 Neutral	$23.20B	18.32	16.31%	2.69%	-12.98%	-11.34%
SHW	66 Neutral	$80.28B	31.64	59.94%	0.98%	0.96%	1.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	61 Neutral	$17.05B	-40.99	-2.84%	2.40%	-3.01%	82.30%

Axalta Coating Systems Corporate Events

Axalta Grants Executive Retention Bonuses Amid Akzo Merger

On November 18, 2025, Axalta Coating Systems Ltd. entered into an all-stock, merger-of-equals agreement with Dutch-based Akzo Nobel N.V., and on December 15, 2025, Axalta’s board compensation committee approved cash retention bonuses for several senior executives in connection with this planned transaction. The bonuses, totaling more than $3.4 million for three named executive officers, will vest and be paid in full six months after the merger’s closing, with prorated or full payments available in cases of qualifying termination, death, or disability, signaling the company’s intent to secure leadership continuity and stability through the merger integration period and protect key talent for stakeholders during the transition.

Axalta Coating Systems Announces Merger with Akzo Nobel

On November 18, 2025, Axalta Coating Systems Ltd. and Akzo Nobel N.V. announced a merger agreement to combine in an all-stock merger of equals, creating a leading global coatings company with an enterprise value of approximately $25 billion. The merger aims to enhance value for stakeholders by leveraging complementary portfolios, achieving significant cost synergies of approximately $600 million, and expanding geographic reach and innovation capabilities. The combined entity, to be dual-headquartered in Amsterdam and Philadelphia, will be listed on the New York Stock Exchange and Euronext Amsterdam, with a focus on delivering exceptional value to customers and driving substantial growth and shareholder value creation.

Axalta Coating Systems Amends Credit Agreement with Barclays

On October 28, 2025, Axalta Coating Systems Dutch Holding B B.V. and Axalta Coating Systems U.S. Holdings, Inc. entered into the Seventeenth Amendment to their Credit Agreement with Barclays Bank PLC. This amendment allows the company to use borrowings to fund repurchases of its common shares, potentially impacting its financial strategy and shareholder value.