Axalta Coating Systems (AXTA) AI Stock Analysis

• Market Cap: $6.14B
• Dividend Yield: N/A
• Average Volume (3M): 4.23M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.96
• 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: 4,672,830
• 30 Day Avg. Volume: 4,233,669
• 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: 1.47
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 5.12
• Enterprise Value/Ebitda: 8.69
• 1Y Price Target: $35.36
• Price Target Upside: 20.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 2.5
• Revenue Forecast (FY): $5.13B

• Rating: 75 Outperform
• Price Target: $32.00 ▲(9.14% Upside)

Axalta Coating Systems' strong financial performance, characterized by solid profitability and reduced debt, is a key strength. The company's attractive valuation further supports its investment appeal. However, technical indicators show mixed signals, and challenges in sales due to macroeconomic headwinds present risks. The balanced sentiment from the earnings call reflects both achievements and challenges, resulting in a moderately positive overall stock score.

Positive Factors

Debt Reduction

Axalta's significant debt reduction enhances financial stability, providing greater flexibility for strategic investments and resilience against economic downturns.

Operational Efficiency

Strong operational efficiency, as evidenced by record EBITDA margins, indicates effective cost management and the ability to sustain profitability.

Share Repurchase Strategy

The strategic share repurchase program reflects confidence in long-term growth prospects and enhances shareholder value through reduced share count.

Negative Factors

Revenue Decline

A decline in net sales indicates challenges in maintaining market demand, which could impact future revenue growth and market share.

Performance Coatings Sales Decline

The decline in Performance Coatings sales suggests difficulties in key markets, potentially affecting the segment's contribution to overall profitability.

Industrial Segment Challenges

Challenges in the Industrial segment, including volume softness, highlight potential vulnerabilities in addressing market demand fluctuations.

Axalta Coating Systems Business Overview & Revenue Model

Company Description

Axalta Coating Systems (AXTA) is a leading global manufacturer of liquid and powder coatings, serving a wide range of industries including automotive, industrial, and architectural sectors. The company specializes in providing high-performance coatings and innovative technologies that enhance the durability and appearance of surfaces. Axalta's core products include automotive paints and coatings, industrial coatings, and decorative architectural coatings, catering to both OEMs (original equipment manufacturers) and refinish markets.

How the Company Makes Money

Axalta 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 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	606.00M	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	5.43B	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: 29.32
• 50DMA: Positive
• 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 Positive. The current price of 29.32 is above the 20-day moving average (MA) of 28.65, above the 50-day MA of 28.98, and below the 200-day MA of 31.31, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.89 is Neutral, 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	75 Outperform	$6.14B	13.91	21.75%	―	-1.83%	40.64%
SHW	72 Outperform	$85.45B	33.66	59.94%	0.92%	0.96%	1.96%
RPM	69 Neutral	$13.85B	20.17	24.05%	1.93%	3.09%	12.25%
EMN	67 Neutral	$7.02B	10.26	12.24%	5.45%	-3.33%	-19.59%
PPG	67 Neutral	$21.53B	17.12	16.31%	2.85%	-12.98%	-11.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	55 Neutral	$16.08B	―	-2.84%	2.53%	-3.01%	82.30%

Axalta Coating Systems Corporate Events

Axalta Coating Systems Reports Strong Q3 2025 Results

Axalta Coating Systems, a global leader in the coatings industry, specializes in providing innovative and sustainable coatings solutions for a variety of applications, including light vehicles, commercial vehicles, and industrial uses. With over 150 years of experience, Axalta serves more than 100,000 customers across 140 countries.

Axalta Coating Systems’ Earnings Call: Balancing Achievements and Challenges

The recent earnings call from Axalta Coating Systems revealed a balanced sentiment, characterized by strong financial achievements alongside notable challenges. The company reported record adjusted EBITDA and EPS, effective cost management, and strategic share repurchases. However, these accomplishments were tempered by sales challenges, particularly in North America, leading to adjusted forecasts due to softer demand.

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.

The most recent analyst rating on (AXTA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Axalta Coating Systems stock, see the AXTA Stock Forecast page.