Axalta Coating Systems (AXTA) AI Stock Analysis

• Market Cap: $6.73B
• Dividend Yield: N/A
• Average Volume (3M): 3.18M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.05
• Revenue Growth: -1.01%
• EPS Growth: 50.58%
• Country: US
• Employees: 12,900
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.64
• Shares Outstanding: 216,574,140
• 10 Day Avg. Volume: 2,957,120
• 30 Day Avg. Volume: 3,183,797
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 8.50
• 1Y Price Target: $36.20
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $34.00 ▲(10.50% Upside)

Axalta Coating Systems' strong financial performance and record-breaking earnings drive its stock score. The company's effective cost management and strategic focus in the Mobility segment are significant strengths. However, technical indicators suggest potential overbought conditions, and valuation metrics indicate moderate attractiveness. Challenges in the Performance Coatings and Refinish segments, along with a lack of dividend yield, are notable risks.

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

Industry Risks

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 (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 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

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	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: Positive
• Last Price: 30.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 30.77 is above the 20-day moving average (MA) of 29.35, above the 50-day MA of 29.74, and below the 200-day MA of 33.71, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 60.65 is Neutral, neither overbought nor oversold. The STOCH value of 83.85 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	74 Outperform	$6.73B	15.10	22.09%	―	-1.01%	50.58%
SHW	72 Outperform	$91.74B	36.54	62.43%	0.84%	0.31%	2.66%
FUL	70 Outperform	$3.24B	32.58	5.62%	1.54%	-0.09%	-37.60%
EMN	65 Neutral	$7.66B	9.37	14.52%	4.95%	1.60%	-3.97%
PPG	63 Neutral	$25.47B	20.01	16.88%	2.41%	-10.59%	-7.79%
CC	51 Neutral	$2.25B	59.33	-87.50%	4.71%	2.48%	-459.90%
Sector *	43 Neutral	C$909.73M	-8.58	0.05%	2.69%	23.40%	-43.48%

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.