AXTA

Axalta Coating SystemsNYSE:AXTA Stock Report

Market Cap

US$6.6b

7D

-2.2%

1Y

17.1%

Updated

16 Sep, 2021

Data

Company Financials +
AXTA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance4/6
Financial Health3/6
Dividends0/6

AXTA Overview

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.

Share Price & News

How has Axalta Coating Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AXTA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AXTA's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.2%

AXTA

-0.1%

US Chemicals

-0.6%

US Market


1 Year Return

17.1%

AXTA

23.0%

US Chemicals

33.7%

US Market

Return vs Industry: AXTA underperformed the US Chemicals industry which returned 23% over the past year.

Return vs Market: AXTA underperformed the US Market which returned 33.7% over the past year.


Shareholder returns

AXTAIndustryMarket
7 Day-2.2%-0.1%-0.6%
30 Day-7.2%-1.1%1.4%
90 Day-6.8%2.3%5.4%
1 Year17.1%17.1%25.3%23.0%35.7%33.7%
3 Year-4.9%-4.9%38.2%17.8%61.2%51.2%
5 Year2.9%2.9%96.4%58.6%123.8%99.4%

Long-Term Price Volatility Vs. Market

How volatile is Axalta Coating Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Axalta Coating Systems Fundamentals Summary

How do Axalta Coating Systems's earnings and revenue compare to its market cap?
AXTA fundamental statistics
Market CapUS$6.64b
Earnings (TTM)US$293.80m
Revenue (TTM)US$4.29b

22.6x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AXTA income statement (TTM)
RevenueUS$4.29b
Cost of RevenueUS$2.74b
Gross ProfitUS$1.55b
ExpensesUS$1.26b
EarningsUS$293.80m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.25
Gross Margin36.14%
Net Profit Margin6.85%
Debt/Equity Ratio254.0%

How did AXTA perform over the long term?

See historical performance and comparison

Valuation

Is Axalta Coating Systems undervalued compared to its fair value and its price relative to the market?

49.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXTA ($28.86) is trading below our estimate of fair value ($57.13)

Significantly Below Fair Value: AXTA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AXTA is good value based on its PE Ratio (22.6x) compared to the US Chemicals industry average (22.8x).

PE vs Market: AXTA is poor value based on its PE Ratio (22.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AXTA is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: AXTA is overvalued based on its PB Ratio (4.5x) compared to the US Chemicals industry average (2.7x).


Future Growth

How is Axalta Coating Systems forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXTA's forecast earnings growth (21% per year) is above the savings rate (2%).

Earnings vs Market: AXTA's earnings (21% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AXTA's revenue (6.2% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: AXTA's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AXTA's Return on Equity is forecast to be high in 3 years time (28.2%)


Past Performance

How has Axalta Coating Systems performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXTA has a large one-off loss of $126.7M impacting its June 30 2021 financial results.

Growing Profit Margin: AXTA's current net profit margins (6.8%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: AXTA's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: AXTA's earnings growth over the past year (283.6%) exceeds its 5-year average (20.3% per year).

Earnings vs Industry: AXTA earnings growth over the past year (283.6%) exceeded the Chemicals industry 38.9%.


Return on Equity

High ROE: AXTA's Return on Equity (19.2%) is considered low.


Financial Health

How is Axalta Coating Systems's financial position?


Financial Position Analysis

Short Term Liabilities: AXTA's short term assets ($3.0B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: AXTA's short term assets ($3.0B) do not cover its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: AXTA's debt to equity ratio (254%) is considered high.

Reducing Debt: AXTA's debt to equity ratio has reduced from 267.7% to 254% over the past 5 years.

Debt Coverage: AXTA's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: AXTA's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

What is Axalta Coating Systems's current dividend yield, its reliability and sustainability?

0.17%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AXTA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AXTA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AXTA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AXTA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AXTA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Robert Bryant (53 yo)

2.92yrs

Tenure

US$6,473,355

Compensation

Mr. Robert W. Bryant has been the Chief Executive Officer and President of Axalta Coating Systems Ltd. since October 7, 2018 and has been its Director since December 2018. Mr. Bryant served as an Executive...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD6.47M) is about average for companies of similar size in the US market ($USD6.50M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AXTA's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: AXTA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Axalta Coating Systems Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Axalta Coating Systems Ltd.
  • Ticker: AXTA
  • Exchange: NYSE
  • Founded: 1866
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$6.642b
  • Shares outstanding: 230.16m
  • Website: https://www.axalta.com

Number of Employees


Location

  • Axalta Coating Systems Ltd.
  • Two Commerce Square
  • Suite 3600
  • Philadelphia
  • Pennsylvania
  • 19103
  • United States

Listings


Biography

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 Lati...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:55
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.