Axalta Coating Systems (AXTA) AI Stock Analysis

• Market Cap: $6.43B
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.08
• Revenue Growth: 0.96%
• EPS Growth: 82.78%
• Country: US
• Employees: 12,900
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 0.59
• Shares Outstanding: 218,559,480
• 10 Day Avg. Volume: 2,472,129
• 30 Day Avg. Volume: 2,487,738
• 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: 1.35
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 5.03
• Enterprise Value/Ebitda: 2.13
• 1Y Price Target: $40.36
• Price Target Upside: 38.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 77 Outperform
• Price Target: $37.00 ▲(27.32%Upside)

Axalta Coating Systems scores a 77.25, reflecting solid financial performance and operational efficiency. Despite challenges such as flat net sales and trade tensions, the company is well-positioned due to strong cash flow and strategic cost management. Valuation metrics are moderate, and technical indicators suggest stability. The overall sentiment from the earnings call is positive, contributing to the company's resilience against macroeconomic headwinds.

Positive Factors

Cost Management

Axalta is cutting costs, leading to a good earnings performance with both costs of goods sold, SG&A, and R&D values falling.

Earnings Performance

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

Market Opportunities

AXTA is benefitting from new wins, helping lift Auto OEM and industrial volumes over the next year.

Negative Factors

Demand Concerns

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

Financial Outlook

A more cautious view on 2025 is taken, reducing EBITDA by ~2%, which is ~2% below consensus.

Market 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 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 coating products and solutions. The company's revenue streams are largely derived from its Performance Coatings and Transportation Coatings segments. The Performance Coatings segment caters to the refinish and industrial end-markets, providing coatings for aftermarket automotive refinishing and various industrial applications. The Transportation Coatings segment focuses on supplying coatings for light and commercial vehicles, serving original equipment manufacturers (OEMs). Axalta's revenue is bolstered by its strong customer relationships, extensive distribution network, and strategic partnerships with automotive OEMs and industrial companies, which ensure a steady demand for its high-quality coating solutions globally.

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
	EBIT
761.00M	706.00M	587.50M	423.20M	462.40M	305.50M
	EBITDA
1.04B	1.05B	831.00M	754.50M	828.60M	598.30M
	Net Income Common Stockholders
449.00M	391.00M	267.40M	191.60M	263.90M	121.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
575.00M	593.00M	700.20M	645.20M	840.60M	1.36B
	Total Assets
7.41B	7.25B	7.27B	7.06B	7.22B	7.16B
	Total Debt
3.42B	3.45B	3.54B	3.70B	3.83B	3.89B
	Net Debt
2.84B	2.85B	2.84B	3.06B	2.99B	2.53B
	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: Negative
• Last Price: 29.06
• 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 29.06 is below the 20-day moving average (MA) of 30.42, below the 50-day MA of 31.30, and below the 200-day MA of 35.03, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 37.87 is Neutral, neither overbought nor oversold. The STOCH value of 14.51 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	77 Outperform	$6.43B	14.23	23.59%	―	0.96%	82.78%
SHW	69 Neutral	$83.07B	31.37	70.22%	0.95%	0.26%	12.82%
EMN	68 Neutral	$8.63B	9.51	16.16%	4.44%	2.78%	1.50%
FUL	66 Neutral	$2.93B	27.25	6.35%	1.74%	0.99%	-27.62%
PPG	58 Neutral	$24.57B	18.33	18.47%	2.51%	-7.67%	-0.58%
Sector *	51 Neutral	$1.99B	-1.26	-21.11%	5.30%	2.92%	-30.46%
CC	49 Neutral	$1.65B	53.45	4.66%	3.18%	-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.