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.

Snowflake

Fundamentals

Mediocre balance sheet with acceptable track record.


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


Market Performance


7 Day Return

2.8%

NYSE:AXTA

0.3%

US Chemicals

-0.3%

US Market


1 Year Return

0.4%

NYSE:AXTA

-11.2%

US Chemicals

3.9%

US Market

AXTA outperformed the Chemicals industry which returned -11.6% over the past year.

AXTA underperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

AXTAIndustryMarket
7 Day2.8%0.3%-0.3%
30 Day3.6%1.0%2.3%
90 Day8.5%-4.5%2.3%
1 Year0.4%0.4%2.5%-11.2%6.2%3.9%
3 Year7.3%7.3%42.4%16.0%46.4%36.7%
5 Yearn/a35.7%5.9%59.6%41.8%

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 based on future cash flows and its price relative to the stock market?

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Axalta Coating Systems's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Axalta Coating Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Axalta Coating Systems is overvalued based on earnings compared to the US Chemicals industry average.

Axalta Coating Systems is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Axalta Coating Systems is poor value based on expected growth next year.


Price Based on Value of Assets

Axalta Coating Systems is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

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

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Axalta Coating Systems's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Axalta Coating Systems's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).

Axalta Coating Systems's revenue growth is positive but not above the United States of America market average.

Axalta Coating Systems's earnings growth is positive but not above the United States of America market average.

Axalta Coating Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Axalta Coating Systems is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

44.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Axalta Coating Systems has delivered over 20% year on year earnings growth in the past 5 years.

Axalta Coating Systems's 1-year earnings growth exceeds its 5-year average (324.9% vs 44.4%)

Axalta Coating Systems's earnings growth has exceeded the US Chemicals industry average in the past year (324.9% vs 5.4%).


Return on Equity

Axalta Coating Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Axalta Coating Systems used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Axalta Coating Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Axalta Coating Systems's financial position?


Financial Position Analysis

Axalta Coating Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Axalta Coating Systems's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Axalta Coating Systems's level of debt (302.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (323.6% vs 302.2% today).

Debt is not well covered by operating cash flow (11.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Axalta Coating Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Axalta Coating Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Axalta Coating Systems has not reported any payouts.

Unable to verify if Axalta Coating Systems's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Axalta Coating Systems has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Axalta Coating Systems's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Axalta Coating Systems's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Robert Bryant (51yo)

0.8yrs

Tenure

US$4,348,333

Compensation

Mr. Robert W. Bryant is the Chief Executive Officer of Axalta Coating Systems Ltd. since December 11, 2018 and is its Director since 2018. Mr. Robert W. Bryant was Interim Chief Executive Officer of Axalta ...


CEO Compensation Analysis

Robert's remuneration is lower than average for companies of similar size in United States of America.

Robert's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.8yrs

Average Tenure

53yo

Average Age

The average tenure for the Axalta Coating Systems management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

61yo

Average Age

The average tenure for the Axalta Coating Systems board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellUS$740,50515 Feb 19
Charles Shaver
EntityIndividual
Shares27,912
Max PriceUS$26.53
SellUS$1,365,09708 Feb 19
Charles Shaver
EntityIndividual
Shares52,217
Max PriceUS$26.42
SellUS$1,023,97317 Aug 18
Joseph McDougall
EntityIndividual
Shares34,281
Max PriceUS$29.87

Ownership Breakdown


Management Team

  • Anthony Massey (36yo)

    Principal Accounting Officer

    • Tenure: 0.2yrs
  • Chris Mecray

    Vice President of Investor Relations

    • Tenure: 4.3yrs
  • Steve Markevich (59yo)

    Executive VP and President of Transportation Coatings & Greater China

    • Tenure: 6.1yrs
    • Compensation: $4.18m
  • Sean Lannon (40yo)

    Senior VP & CFO

    • Tenure: 0.8yrs
    • Compensation: $1.33m
  • John McCool (66yo)

    President

  • Ashish Jawadiwar

    VP and Chief Information & Digital Officer

    • Tenure: 0.3yrs
  • Robert Bryant (51yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: $4.35m
  • Michael Finn (53yo)

    Consultant

    • Tenure: 0.6yrs
    • Compensation: $3.43m
  • Barry Snyder (56yo)

    Senior VP & CTO

    • Tenure: 4.5yrs
  • Tabitha Oman

    VP & Chief Compliance Officer


Board Members

  • Bill Cook (66yo)

    Director

    • Tenure: 0.2yrs
  • Bob McLaughlin (62yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: $298.95k
  • Liz Lempres (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $274.97k
  • Marc Garrett (57yo)

    Chairman & Presiding Director

    • Tenure: 0.1yrs
    • Compensation: $283.56k
  • Sam Smolik (65yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: $287.87k
  • Robert Bryant (51yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: $4.35m
  • Debbie Kissire (61yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: $284.97k

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$7.132b
  • Shares outstanding: 234.60m
  • Website: Click here

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. It operates in two segments, Performance Coatings and Transportation Coating ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 00:51
End of Day Share Price2019/07/18 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.