NYSE:AXTA

Stock Analysis Report

Axalta Coating Systems

Executive Summary

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.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.9%

AXTA

-3.8%

US Chemicals

-1.1%

US Market


1 Year Return

-37.7%

AXTA

-32.5%

US Chemicals

-13.6%

US Market

Return vs Industry: AXTA underperformed the US Chemicals industry which returned -28.4% over the past year.

Return vs Market: AXTA underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

AXTAIndustryMarket
7 Day-6.9%-3.8%-1.1%
30 Day-34.7%-22.0%-17.8%
90 Day-46.5%-30.6%-22.5%
1 Year-37.7%-37.7%-28.2%-32.5%-11.9%-13.6%
3 Year-48.3%-48.3%-11.0%-28.3%12.1%4.9%
5 Year-48.0%-48.0%-1.5%-23.0%30.5%16.3%

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

Valuation

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

44.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXTA ($17.27) is trading below our estimate of fair value ($31.36)

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


Price To Earnings Ratio

PE vs Industry: AXTA is poor value based on its PE Ratio (16.2x) compared to the Chemicals industry average (15.3x).

PE vs Market: AXTA is poor value based on its PE Ratio (16.2x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: AXTA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AXTA is overvalued based on its PB Ratio (3x) compared to the US Chemicals industry average (1.4x).


Next Steps

Future Growth

How is Axalta Coating Systems forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXTA's forecast earnings growth (17.8% per year) is above the savings rate (1.7%).

Earnings vs Market: AXTA's earnings (17.8% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: AXTA's earnings are forecast to grow, but not significantly.

Revenue vs Market: AXTA's revenue (1.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AXTA's revenue (1.4% 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 (23%)


Next Steps

Past Performance

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

34.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXTA has a large one-off loss of $95.2M impacting its December 31 2019 financial results.

Growing Profit Margin: AXTA's current net profit margins (5.6%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: AXTA's earnings have grown significantly by 34.7% per year over the past 5 years.

Accelerating Growth: AXTA's earnings growth over the past year (20.2%) is below its 5-year average (34.7% per year).

Earnings vs Industry: AXTA earnings growth over the past year (20.2%) exceeded the Chemicals industry -7.2%.


Return on Equity

High ROE: AXTA's Return on Equity (17.9%) is considered low.


Next Steps

Financial Health

How is Axalta Coating Systems's financial position?


Financial Position Analysis

Short Term Liabilities: AXTA's short term assets ($2.6B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: AXTA's short term assets ($2.6B) do not cover its long term liabilities ($4.3B).


Debt to Equity History and Analysis

Debt Level: AXTA's debt to equity ratio (269.6%) is considered high.

Reducing Debt: AXTA's debt to equity ratio has reduced from 325.4% to 269.6% over the past 5 years.

Debt Coverage: AXTA's debt is not well covered by operating cash flow (15.1%).

Interest Coverage: AXTA's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: AXTA has a high level of physical assets or inventory.

Debt Coverage by Assets: AXTA's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


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 payouts.

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

1.5yrs

Average management tenure


CEO

Robert Bryant (51yo)

1.5s

Tenure

US$9,975,228

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD9.98M) is above average for companies of similar size in the US market ($USD5.53M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Bryant
CEO, President & Director1.5yrsUS$9.98m0.049% $1.9m
Sean Lannon
Senior VP & CFO1.5yrsUS$4.30m0.011% $409.9k
Brian Berube
Senior VP0.75yrUS$4.81mno data
Steven Markevich
Executive VP and President of Transportation Coatings & Greater China6.83yrsUS$4.87m0.038% $1.5m
Barry Snyder
Senior VP0.75yrno datano data
Robert Roop
VP & CTO0.75yrno datano data
Ashish Jawadiwar
VP and Chief Information & Digital Officer1yrno datano data
Christopher Mecray
Vice President of Investor Relations5.08yrsno datano data
Tabitha Oman
VP & Chief Compliance Officerno datano datano data
Robert Ferris
VP of Corporate Affairs & Chief Communications Officer2.5yrsno datano data

1.5yrs

Average Tenure

56yo

Average Age

Experienced Management: AXTA's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Bryant
CEO, President & Director1.5yrsUS$9.98m0.049% $1.9m
William Cook
Independent Director0.92yrUS$131.24kno data
Robert McLaughlin
Independent Director6yrsUS$314.26k0.024% $922.8k
Elizabeth Lempres
Independent Director3yrsUS$299.26k0.0088% $336.8k
Mark Garrett
Chairman & Presiding Director0.83yrUS$330.51k0.012% $451.7k
Samuel Smolik
Independent Director3.58yrsUS$301.76k0.011% $437.5k
Deborah Kissire
Independent Director3.33yrsUS$301.76k0.0088% $336.8k

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: AXTA's board of directors are not considered experienced ( 2.9 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$3.828b
  • Shares outstanding: 235.25m
  • Website: https://www.axalta.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXTANYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2014
9AXDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2014
0U6CLSE (London Stock Exchange)YesCommon StockGBUSDNov 2014

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 Latin America. It operates through two segments, Performance Coatings and Transportation Coatings. The company offers water and solvent borne products and systems used to refinish 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 claddings and fittings, automotive components, general industrial and HVAC products, job coaters, electrical insulation coatings, appliances, aluminum extrusions, rebars, and oil and gas pipelines; and wood coatings under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Tufcote and Ceranamel for liquid coatings; and Alesta, Nap-Gard, Abcite, and Plascoat brands for powder. In addition, the company develops and supplies a line of coatings products, such as electrocoat, primer, basecoat, and clearcoat products for OEMs of light and commercial vehicles; and various coatings systems for various commercial applications, including HDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands; and sells and ships its products to light vehicle OEM customers. It sells its product under the Audurra, Challenger, Chemophan, ColorNet, Corlar, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 00:53
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.