One-glance verdict
Within fair range
$32.00 our estimate vs market $33.44
Wall Street consensus: $39.18 (22.4% higher than our fair-value estimate)
5% above our estimate
Fundamentals snapshot
Axalta Coating Systems Ltd.
AXTA · NYQ · Basic Materials · Specialty Chemicals
Current price
$33.44
52-week range
$24.94 - $38.61
Market cap
$7.16B
Balance sheet
Stretched
4.18x Stretched
Net debt $2.43B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Returns 14.3% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.4% (peer median: 0.9%).
What this company does
Axalta Coating Systems Ltd.
Axalta Coating Systems Ltd. makes and sells special paints and coatings for things like cars, trucks, and buildings. Their money mainly comes from selling these coatings to car repair shops and companies that make new vehicles. This is important because these coatings protect surfaces and make them look good, so people rely on them for everything from fixing a fender bender to painting a new car.
How the company got here
Axalta Coating Systems has a long history, tracing its roots back to 1866. It was originally part of DuPont's performance coatings business before being spun off as an independent company in 2013 and later changing its name to Axalta Coating Systems Ltd. in 2014. This transition allowed Axalta to focus specifically on the coatings industry, aiming to become a leading global supplier of liquid and powder coatings. The company's journey has been shaped by its focus on innovation and expanding its global reach in the specialty chemicals sector.
What it actually does
Axalta makes and sells coatings, which are essentially protective and decorative layers applied to surfaces. Think of the paint on your car, the finish on your appliances, or the protective layer on bridges and buildings. These coatings are designed to prevent corrosion, enhance appearance, and provide specific functionalities. Axalta's products are used across a wide range of industries, from automotive manufacturing and repair to industrial applications and architectural finishes.
Mobility Coatings
This segment focuses on coatings for the automotive industry, including both new vehicles and repairs. It supplies coatings to original equipment manufacturers (OEMs) – the companies that build cars – as well as to independent body shops and dealership repair centers. These coatings are crucial for protecting vehicles from rust and damage, as well as providing the aesthetic colors and finishes consumers expect. This is a significant part of Axalta's business, serving a large and demanding market.
Performance Coatings
The Performance Coatings segment covers a broad array of applications beyond just cars. This includes durable and decorative coatings for industrial products, building materials, and infrastructure. For example, Axalta provides coatings for things like cabinets, furniture, and even large structures like bridges and pipelines, protecting them from the elements and wear. This segment demonstrates Axalta's versatility in applying its coating technology to diverse markets.
What management is betting on now
Axalta's current strategy revolves around driving growth through innovation and operational efficiency. They are investing in developing more sustainable coating solutions, such as waterborne and low-VOC (volatile organic compound) products, to meet increasing environmental regulations and customer demand. The company is also focused on expanding its presence in high-growth regions and leveraging digital tools to improve customer service and streamline operations. This approach aims to strengthen Axalta's position as a leader in the global coatings market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$91.00M
FY2024 Q3
$161.00M
FY2024 Q4
$172.00M
FY2025 Q1
$-17.00M
FY2025 Q2
$97.00M
FY2025 Q3
$87.00M
FY2025 Q4
$286.00M
FY2026 Q1
$18.00M
Revenue
$1.25B
Net income
$90.00M
Diluted EPS
0.42
Operating cash flow
$68.00M
Free cash flow
$18.00M
Fetching…
Sources
Revenue
$1.26B
Net income
$60.00M
Diluted EPS
0.28
Operating cash flow
$344.00M
Free cash flow
$286.00M
Fetching…
Sources
Revenue
$1.29B
Net income
$110.00M
Diluted EPS
0.51
Operating cash flow
$137.00M
Free cash flow
$87.00M
Fetching…
Sources
Revenue
$1.30B
Net income
$109.00M
Diluted EPS
0.50
Operating cash flow
$142.00M
Free cash flow
$97.00M
Fetching…
Sources
Revenue
$1.26B
Net income
$99.00M
Diluted EPS
0.45
Operating cash flow
$26.00M
Free cash flow
$-17.00M
Fetching…
Sources
Revenue
$1.31B
Net income
$137.00M
Diluted EPS
0.63
Operating cash flow
$234.00M
Free cash flow
$172.00M
Fetching…
Sources
Revenue
$1.32B
Net income
$101.00M
Diluted EPS
0.46
Operating cash flow
$194.00M
Free cash flow
$161.00M
Fetching…
Sources
Revenue
$1.35B
Net income
$112.00M
Diluted EPS
0.51
Operating cash flow
$114.00M
Free cash flow
$91.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $32.00 vs current price $33.44
Wall Street consensus is the average analyst price target: $39.18 (22.4% higher than our fair-value estimate).
Our most-likely fair value is $32.00 a share — about 4.3% away from today's price of $33.44, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $2.4B. Interest coverage 4.2x.
Net debt
$2.43B
Interest coverage
4.18x
Axalta Coating Systems Ltd.'s profit covers its interest bill about 4.2 times over.
Stretched
Worse cushion
Baseline
Better cushion
AXTA
BASELINE
Axalta Coating Systems Ltd.
Total debt $3.07B Interest coverage 4.18x This is the baseline the peer rows are being compared against.
Total debt $7.47B Interest coverage 9.00x +116% vs AXTA Carries about 2.2x more debt cushion than AXTA.
Total debt $15.03B Interest coverage 8.16x +96% vs AXTA Carries about 2.0x more debt cushion than AXTA.
Total debt $2.74B Interest coverage 8.66x +107% vs AXTA Carries about 2.1x more debt cushion than AXTA.
Total debt $5.47B Interest coverage 4.37x +5% vs AXTA Has roughly the same debt cushion as AXTA.
Total debt $2.19B Interest coverage 2.83x -32% vs AXTA Carries about 1.5x less debt cushion than AXTA.
What you should know
The case for and against AXTA
2 Rewards
1 Risk
Rewards
-
Returns 14.3% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.4% (peer median: 0.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.52x
Forward P/E
11.74x
P/B
2.84x
P/S
1.39x
EV/EBITDA
9.72x
PEG ratio
2.04x
Profitability
How much profit each dollar creates
Gross margin
34.0%
Operating margin
15.2%
Net margin
6.8%
ROE
14.3%
ROA
6.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.19x
Current ratio
1.53x
Quick ratio
1.01x
Total debt
$3.07B
Total cash
$634.00M
Growth
How the business has been compounding
Revenue TTM
$5.11B
Revenue 5Y CAGR
3.8%
EPS TTM
1.63
EPS 5Y CAGR
26.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$691.00M
Free CF TTM
$453.00M
FCF margin
8.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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