Axalta Coating Systems (AXTA) AI Stock Analysis

• Market Cap: $6.76B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.07
• Revenue Growth: 0.96%
• EPS Growth: 82.78%
• Country: US
• Employees: 12,900
• Sector: Basic Materials
• Sector Strength: 75
• Industry: Chemicals - Specialty
• EPS (TTM): 0.59
• Shares Outstanding: 218,559,480
• 10 Day Avg. Volume: 1,945,273
• 30 Day Avg. Volume: 2,287,898
• PEG Ratio: -1.20
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.52
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 5.03
• Enterprise Value/Ebitda: 2.13
• 1Y Price Target: $40.31
• Price Target Upside: 32.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $35.00 ▲(14.68%Upside)

Axalta Coating Systems demonstrates strong financial performance and effective operational management, reflected in its solid earnings call results. However, technical analysis presents mixed signals, and valuation metrics are reasonable but not particularly attractive. Macroeconomic challenges and trade tensions add uncertainty, balancing the positive aspects.

Positive Factors

Cost Savings

The company is set to benefit from continued momentum on the cost savings program and potential share gains in each of its businesses.

Financial Performance

AXTA continues to post record earnings despite weakness in the vast majority of its end-markets.

Free Cash Flow

AXTA is trading at >9% FCF yield on 2026E basis, indicating strong free cash flow generation.

Negative Factors

Market Concerns

The stock sold off over concerns regarding the slow refinish markets.

Market Demand

Incrementally negative commentary surrounding Refinish demand, with the industry now expected to decline more than previously anticipated, impacts the stock negatively.

Valuation

The updated price target for Axalta reflects lower peer multiples, suggesting a less favorable valuation environment.

Axalta Coating Systems Business Overview & Revenue Model

Company Description

Axalta Coating Systems (AXTA) is a leading global manufacturer and supplier of liquid and powder coatings. The company serves a wide range of industrial sectors, including automotive, transportation, general industrial, and architectural. Axalta is known for its innovative coating systems that enhance durability, aesthetics, and performance across numerous surfaces and materials.

How the Company Makes Money

Axalta Coating Systems generates revenue primarily through the sale of its liquid and powder coating products. The company's revenue streams are divided into two main segments: Performance Coatings and Transportation Coatings. Performance Coatings include refinish and industrial coatings, which cater to the automotive aftermarket and a variety of industrial applications. Transportation Coatings are focused on the original equipment manufacturer (OEM) transportation sector, providing coatings for automobiles, commercial vehicles, and other transportation-related industries. Axalta's earnings are bolstered by strategic partnerships with major automotive manufacturers and industrial clients, as well as ongoing investments in research and development to innovate and expand its product offerings. The company also benefits from a global distribution network that helps reach a diverse customer base across different regions.

Axalta Coating Systems Financial Statement Overview

Summary

Axalta Coating Systems exhibits strong financial performance with impressive revenue growth and profitability metrics. The company maintains a robust gross profit margin of 33.03% and a net profit margin of 8.56%. Operational efficiency is demonstrated by EBIT and EBITDA margins of 14.51% and 19.92%, respectively. However, the balance sheet indicates a moderate debt-to-equity ratio of 1.65, suggesting a higher reliance on debt, though cash flow generation remains strong.

Income Statement

Axalta Coating Systems has shown impressive revenue growth and improving profitability metrics. The TTM gross profit margin stands at 33.03% and the net profit margin at 8.56%, both of which are strong indicators of the company’s ability to manage costs effectively. The revenue growth rate over the past year has been healthy, despite a slight decline in the most recent period. The EBIT and EBITDA margins of 14.51% and 19.92% respectively, reflect solid operational efficiency.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 1.65, indicating a balanced approach to leveraging. The return on equity (ROE) at 21.63% demonstrates strong profitability relative to shareholders' equity. However, the equity ratio of 28.02% suggests a higher reliance on debt, which could pose risks if interest rates rise or cash flows falter.

Cash Flow

Axalta's cash flow generation capabilities are robust, as seen in the operating cash flow to net income ratio of 1.26 and a free cash flow to net income ratio of 0.91. Despite a slight decrease in free cash flow growth, the company maintains strong cash conversion, indicating efficient management of capital expenditures and operational activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.24B	5.28B	5.18B	4.88B	4.42B	3.74B
Gross Profit	1.73B	1.80B	1.62B	1.42B	1.43B	1.28B
EBITDA	1.04B	1.05B	831.00M	754.50M	828.60M	598.30M
Net Income	449.00M	391.00M	267.40M	191.60M	263.90M	121.60M
Balance Sheet
Total Assets	7.41B	7.25B	7.27B	7.06B	7.22B	7.16B
Cash, Cash Equivalents and Short-Term Investments	575.00M	593.00M	700.20M	645.20M	840.60M	1.36B
Total Debt	3.42B	3.45B	3.54B	3.70B	3.83B	3.89B
Total Liabilities	5.29B	5.29B	5.50B	5.56B	5.68B	5.68B
Stockholders Equity	2.08B	1.91B	1.73B	1.45B	1.49B	1.43B
Cash Flow
Free Cash Flow	407.00M	436.00M	437.40M	142.90M	437.00M	427.20M
Operating Cash Flow	568.00M	576.00M	575.30M	293.80M	558.60M	509.30M
Investing Cash Flow	-465.00M	-440.00M	-205.70M	-106.40M	-716.00M	-61.50M
Financing Cash Flow	-127.00M	-201.00M	-315.00M	-368.90M	-334.50M	-130.90M

Axalta Coating Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXTA, the sentiment is Neutral. The current price of 30.52 is above the 20-day moving average (MA) of 30.01, below the 50-day MA of 31.06, and below the 200-day MA of 34.74, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 63.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AXTA.

Axalta Coating Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	76 Outperform	$6.76B	15.15	23.59%	―	0.96%	82.78%
FUL	75 Outperform	$3.46B	34.79	5.62%	1.47%	-0.09%	-37.60%
SHW	74 Outperform	$88.17B	33.29	70.22%	0.90%	0.26%	12.82%
EMN	69 Neutral	$9.27B	10.39	16.16%	4.13%	2.78%	1.50%
PPG	64 Neutral	$26.83B	20.17	18.47%	2.30%	-7.67%	-0.58%
Sector *	62 Neutral	$10.33B	10.17	-0.16%	2.78%	2.22%	-32.59%
CC	57 Neutral	$2.10B	68.27	4.66%	2.49%	-0.68%	―

Axalta Coating Systems Corporate Events

Axalta Coating Systems Holds Annual General Meeting

On June 4, 2025, Axalta Coating Systems held its Annual General Meeting where nine directors were elected for terms expiring at the 2026 AGM. Additionally, members approved PricewaterhouseCoopers LLP as the independent auditor and endorsed the executive compensation plan for 2024, indicating continued shareholder support for the company’s leadership and financial strategies.

The most recent analyst rating on (AXTA) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Axalta Coating Systems stock, see the AXTA Stock Forecast page.