Axalta Coating Systems (AXTA) AI Stock Analysis

• Market Cap: $6.03B
• Dividend Yield: N/A
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.09
• Revenue Growth: -1.01%
• EPS Growth: 50.58%
• Country: US
• Employees: 12,900
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Chemicals - Specialty
• EPS (TTM): 0.64
• Shares Outstanding: 216,574,140
• 10 Day Avg. Volume: 3,641,152
• 30 Day Avg. Volume: 2,755,885
• PEG Ratio: N/A
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.70
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 6.40
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $37.77
• Price Target Upside: 35.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 73 Outperform
• Price Target: $32.00 ▲(15.03%Upside)

Axalta Coating Systems' overall stock score is driven primarily by strong financial performance and positive earnings call highlights, including record EBITDA. While the valuation is reasonable, bearish technical indicators suggest caution. Challenges in certain segments pose risks, but strategic initiatives provide a positive outlook.

Positive Factors

Earnings Growth

AXTA should generate above average 2025 EPS growth, accelerating in 2026/27.

Financial Performance

AXTA posted a solid beat despite FX headwinds and weakness in Auto OEM markets and refinish claims.

Negative Factors

Business Outlook

The potential for declining volumes in the Refinish business leads to a flat top-line outlook, posing a risk to longer-term earnings growth.

Industry Trends

Advanced driver-assistance systems and smarter cars are expected to significantly reduce accident rates, impacting refinish volumes negatively.

Insurance Trends

Higher auto insurance rates and increased instances of cars being declared a total loss are reducing car repairs, posing challenges for AXTA.

Axalta Coating Systems Business Overview & Revenue Model

Company Description

Axalta 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 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 demonstrates strong financial health with consistent revenue growth and robust profitability. The company effectively manages costs, resulting in improved profit margins. However, vigilance is needed to maintain growth momentum due to a recent dip in total revenue.

Income Statement

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

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

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	885.00M	1.80B	1.62B	1.42B	1.43B	1.28B
EBITDA	889.00M	1.05B	831.00M	754.50M	828.60M	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	3.45B	3.54B	3.70B	3.83B	3.89B
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	318.00M	436.00M	437.40M	142.90M	437.00M	427.20M
Operating Cash Flow	456.00M	576.00M	575.30M	293.80M	558.60M	509.30M
Investing Cash Flow	-448.00M	-440.00M	-205.70M	-106.40M	-716.00M	-61.50M
Financing Cash Flow	-259.00M	-201.00M	-315.00M	-368.90M	-334.50M	-130.90M

Axalta Coating Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 27.82 is below the 20-day moving average (MA) of 29.90, below the 50-day MA of 30.20, and below the 200-day MA of 34.21, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 32.41 is Neutral, neither overbought nor oversold. The STOCH value of 14.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXTA.

Axalta Coating Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	73 Outperform	$6.03B	13.67	22.09%	―	-1.01%	50.58%
SHW	68 Neutral	$85.62B	34.10	62.43%	0.88%	0.31%	2.66%
FUL	68 Neutral	$3.00B	30.20	5.62%	1.65%	-0.09%	-37.60%
EMN	63 Neutral	$8.38B	9.25	14.52%	5.61%	1.60%	-3.97%
PPG	55 Neutral	$23.81B	18.71	16.88%	2.60%	-10.59%	-7.79%
CC	50 Neutral	$1.79B	58.21	4.66%	6.99%	-0.68%	―
Sector *	44 Neutral	C$848.76M	-6.71	-16.27%	2.80%	16.46%	-27.75%

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.