Axalta Coating Systems (AXTA) AI Stock Analysis

Compare

349 Followers

Top Page

Axalta Coating Systems

(NYSE:AXTA)

Select Model

Outperform 74 (OpenAI - 4o)

Rating:74Outperform

Price Target:

$35.00

▲(20.65% Upside)

Axalta Coating Systems' overall stock score reflects strong financial performance and positive earnings call highlights, including record-breaking EBITDA and strategic growth in the Mobility segment. While technical indicators suggest a neutral trend, the company's valuation is attractive for growth investors. Challenges in certain segments and a lack of dividend yield are minor concerns.

Positive Factors

Improved Profitability

Improved profitability indicates effective cost management and operational efficiency, which can enhance long-term financial stability and shareholder value.

Strong Cash Flow Generation

Robust cash flow generation supports reinvestment in growth opportunities and provides a buffer against economic downturns, contributing to sustainable business operations.

Debt Reduction

Lower debt levels reduce financial risk and interest expenses, enhancing the company's ability to invest in strategic initiatives and withstand market volatility.

Negative Factors

Decline in Performance Coatings Sales

A decline in sales within a key segment can signal challenges in market demand or competitive pressures, potentially impacting overall revenue and long-term growth prospects.

Refinish Segment Challenges

Challenges in the Refinish segment, particularly in North America, may reflect broader market issues or competitive dynamics, affecting revenue stability and growth potential.

Softer Demand Environment

Prolonged softer demand can lead to reduced sales and profitability, necessitating strategic adjustments to align with market conditions and maintain financial performance.

Axalta Coating Systems (AXTA) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.18B

Dividend YieldN/A

Average Volume (3M)3.72M

Price to Earnings (P/E)14.3

Beta (1Y)1.09

Revenue Growth-1.01%

EPS Growth50.58%

CountryUS

Employees12,900

SectorBasic Materials

Sector Strength58

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.64

Shares Outstanding216,574,140

10 Day Avg. Volume4,207,732

30 Day Avg. Volume3,719,851

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.51

Enterprise Value/Revenue1.79

Enterprise Value/Gross Profit5.25

Enterprise Value/Ebitda8.50

Forecast

1Y Price Target

$34.63

Price Target Upside19.37% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Axalta Coating Systems Business Overview & Revenue Model

Company DescriptionAxalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It operates through two segments, Performance Coatings and Transportation Coatings. The company offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. It also provides functional and decorative liquid, and powder coatings used in various industrial applications, including architectural cladding and fittings, automotive coatings, general industrial, job coaters, energy solutions, HVAC, appliances, industrial wood, coil, and oil and gas pipelines; and coatings for building materials, cabinet, wood and luxury vinyl flooring, and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Tufcote, and Ceranamel for liquid coatings; and Alesta, Nap-Gard, Abcite, Teodur, and Plascoat brands for powder coatings. In addition, the company develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. It also sells its product under the Audurra, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Philadelphia, Pennsylvania.

How the Company Makes MoneyAxalta generates revenue primarily through the sale of its coatings products across various markets. The company operates through multiple segments, including Performance Coatings and Transportation Coatings, each contributing significantly to its overall earnings. Key revenue streams include the sale of automotive coatings to OEMs and the refinish market, as well as industrial coatings for manufacturing and construction applications. Additionally, Axalta benefits from strategic partnerships with automotive manufacturers and distributors, which enhance its market presence and distribution capabilities. The company's focus on innovation and technology also allows it to command premium pricing for its high-performance coatings, further contributing to its profitability.

Axalta Coating Systems Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Breaks down revenue by different business segments, highlighting which areas drive growth and profitability, and revealing strategic focus and market opportunities.

Chart InsightsAxalta Coating Systems' Performance Coatings Refinish segment faces challenges with declining volumes due to reduced collision claims and inventory adjustments, despite a long-term upward trend. The Industrial segment is also under pressure from macroeconomic softness. However, the Mobility Coatings segment shows resilience with organic growth, particularly in China and Latin America, contributing to record EBITDA margins. Strategic initiatives in cost management and innovation are crucial as Axalta navigates North American market challenges, aiming to sustain its financial momentum and operational excellence.

Data provided by:

Main Street Data

Axalta Coating Systems Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 28, 2025

Earnings Call Sentiment Neutral

Axalta demonstrated strong financial performance with record-breaking adjusted EBITDA and EPS amid a challenging market environment. The Mobility segment and operational excellence initiatives were key drivers of this success. However, challenges persist in the Performance Coatings and Refinish segments, particularly in North America. Despite these challenges, the company's disciplined execution and strategic focus position it well for future growth.

Q2-2025 Updates

Positive Updates

Record-Breaking Adjusted EBITDA and EPS

Axalta delivered a record quarter for adjusted EBITDA at $292 million and adjusted diluted earnings per share, despite a challenging global market. This marks the fifth consecutive quarter with adjusted EBITDA margins at or above 21%.

Strong Performance in Mobility Segment

The Mobility segment achieved 2% organic growth, driven by strength in China and Latin America. Adjusted EBITDA margin in this segment expanded by 500 basis points to nearly 20%.

Operational Excellence and Cost Management

Axalta improved its safety record by 55% year-over-year and reduced operating expenses by 6%, driven by $40 million in cost savings from transformation initiatives and closing three manufacturing plants.

Positive Free Cash Flow and Share Repurchases

Cash flow from operations increased 25% year-over-year, driving free cash flow to $101 million. Axalta executed $65 million in share repurchases this quarter.

Negative Updates

Decline in Performance Coatings Sales

Net sales for Performance Coatings declined 6% year-over-year due to lower volumes and unfavorable price-mix, primarily in North America.

Refinish Segment Challenges in North America

The Refinish segment faced headwinds with a 6% decline in net sales year-over-year, impacted by lower collision claims and distributor inventory corrections.

Expected Prolonged Softer Demand Environment

The softer demand environment observed in the first half of the year is expected to persist longer than anticipated, impacting full-year sales expectations.

Company Guidance

During Axalta Coating Systems' Q2 2025 earnings call, the company reported robust financial performance, achieving a record adjusted EBITDA of $292 million with margins exceeding 22%, marking the fifth consecutive quarter above their 21% target. Net sales reached just over $1.3 billion, aligning with their guidance. Axalta executed $65 million in share repurchases and maintained a focus on capital deployment. The Mobility segment reported 2% organic growth, driven by strength in China and Latin America, achieving adjusted EBITDA margins near 20%. Performance Coatings saw net sales decline by 6% year-over-year, but nearly 2% growth was realized from adjacencies and retail. Cash flow from operations increased 25% year-over-year, resulting in $101 million in free cash flow. Full-year adjusted EBITDA is now expected to be between $1.14 billion and $1.165 billion, with adjusted diluted earnings per share projected to range from $2.45 to $2.55.

Axalta Coating Systems Financial Statement Overview

Summary

Axalta Coating Systems demonstrates solid financial health with strong profitability and efficient cash flow management. The company has shown consistent revenue and profit growth, supported by effective cost control and operational efficiency. While the balance sheet is stable, attention to leverage and maintaining growth in free cash flow will be crucial for sustaining long-term financial stability.

Income Statement

Positive

Axalta Coating Systems shows strong financial performance with a consistent revenue growth trajectory, evidenced by a 7.3% increase from 2022 to 2023 and a 1.8% increase from 2023 to 2024. The gross profit margin is robust at 33.0% for TTM, and the net profit margin has improved significantly to 8.6% TTM, indicating effective cost management. EBIT and EBITDA margins are also healthy at 14.5% and 19.9% TTM respectively, showcasing operational efficiency. However, a slight dip in total revenue in the latest TTM period suggests a need for vigilance in maintaining growth momentum.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.65, which is moderate for the industry. The equity ratio stands at 28.0% TTM, indicating a solid equity base. Return on equity has improved to 21.6% TTM, demonstrating efficient use of shareholder funds. While the company has managed its debt levels well, the high total liabilities relative to assets suggest potential leverage risks that need monitoring.

Cash Flow

Positive

Cash flow analysis reveals a strong operating cash flow to net income ratio of 1.26 TTM, indicating robust cash generation relative to profits. The free cash flow to net income ratio is 0.91 TTM, reflecting healthy cash flow after capital expenditures. Free cash flow growth has been positive, with a slight decline in the latest TTM period, suggesting the need for careful capital allocation to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.20B	5.28B	5.18B	4.88B	4.42B	3.74B
Gross Profit	1.77B	1.80B	1.62B	1.42B	1.43B	1.28B
EBITDA	1.10B	1.05B	857.30M	700.00M	778.80M	598.30M
Net Income	446.00M	391.00M	267.40M	191.60M	263.90M	121.60M
Balance Sheet
Total Assets	7.78B	7.25B	7.27B	7.06B	7.22B	7.16B
Cash, Cash Equivalents and Short-Term Investments	625.00M	593.00M	700.20M	645.20M	840.60M	1.36B
Total Debt	20.00M	3.52B	3.54B	3.81B	3.94B	4.00B
Total Liabilities	5.47B	5.29B	5.50B	5.56B	5.68B	5.68B
Stockholders Equity	2.27B	1.91B	1.73B	1.45B	1.49B	1.43B
Cash Flow
Free Cash Flow	415.00M	436.00M	437.40M	142.90M	437.00M	427.20M
Operating Cash Flow	598.00M	576.00M	575.30M	293.80M	558.60M	509.30M
Investing Cash Flow	-487.00M	-440.00M	-205.70M	-106.40M	-716.00M	-61.50M
Financing Cash Flow	-329.00M	-201.00M	-315.00M	-368.90M	-334.50M	-130.90M

Axalta Coating Systems Technical Analysis

Technical Analysis Sentiment

Negative

Last Price29.01

Price Trends

50DMA

29.66

Negative

100DMA

29.70

Negative

200DMA

31.83

Negative

Market Momentum

MACD

-0.36

Negative

RSI

47.68

Neutral

STOCH

87.54

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXTA, the sentiment is Negative. The current price of 29.01 is above the 20-day moving average (MA) of 27.83, below the 50-day MA of 29.66, and below the 200-day MA of 31.83, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 87.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXTA.

Axalta Coating Systems Risk Analysis

Axalta Coating Systems disclosed 47 risk factors in its most recent earnings report. Axalta Coating Systems reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Axalta Coating Systems Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	74 Outperform	$6.18B	14.26	22.09%	―	-1.01%	50.58%
SHW	70 Neutral	$82.59B	32.89	62.43%	0.92%	0.31%	2.66%
EMN	70 Neutral	$7.07B	8.61	14.52%	5.42%	1.60%	-3.97%
RPM	69 Neutral	$14.36B	20.91	24.05%	1.83%	3.09%	12.25%
PPG	63 Neutral	$23.06B	18.12	16.88%	2.63%	-10.59%	-7.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	50 Neutral	$16.57B	―	-2.74%	2.47%	-0.07%	83.36%

* Basic Materials Sector Average

Performance Comparison

AXTA

Axalta Coating Systems

28.21

-7.37

-20.71%

EMN

Eastman Chemical

61.20

-41.27

-40.28%

IFF

International Flavors & Fragrances

64.82

-35.43

-35.34%

PPG

PPG Industries

102.16

-22.05

-17.75%

RPM

RPM International

111.77

-16.01

-12.53%

SHW

Sherwin-Williams Company

333.81

-24.76

-6.91%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 16, 2025