A Business at a Glance
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Axalta Coating Systems Ltd.
AXTA
$7.1B
Mkt Cap
$32.76
+3.41%
Axalta Coating Systems Ltd. (AXTA) has a current P/E ratio of 18.8, compared to its historical median P/E of 28.4. The stock is currently considered Fair based on its historical valuation range.
Axalta Coating Systems Ltd. (AXTA) has a 5-year average return on invested capital (ROIC) of 9.5%. This is below average and may indicate limited pricing power.
Axalta Coating Systems Ltd. (AXTA) has a market capitalization of $8.4B. It is classified as a mid-cap stock.
Axalta Coating Systems Ltd. (AXTA) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.97%.
Based on historical P/E analysis, Axalta Coating Systems Ltd. (AXTA) appears fair. The current P/E of 18.8 is 34% below its historical median of 28.4. The estimated fair value CAGR (P/E method) is 13.0%.
Axalta Coating Systems Ltd. (AXTA) operates in the Paints, Varnishes, Lacquers, Enamels & Allied Prods industry, within the Materials sector.
Axalta Coating Systems is a global manufacturer and distributor of high-performance coatings systems with over 150 years of heritage in the industry. The company operates through two segments—Performance Coatings and Mobility Coatings—serving four end-markets: refinish, industrial, light vehicle, and commercial vehicle. Performance Coatings provides liquid and powder coating solutions to body shops and industrial manufacturers, with particular strength in color-matching technology for automotive refinish applications and specialized coatings for building products, construction, and energy solutions. Mobility Coatings supplies coatings to original equipment manufacturers for light and commercial vehicles globally. The company's business model combines direct sales forces and technical support with independent, locally-based distributors across North America, Latin America, Europe/Middle East/Africa, and Asia-Pacific, enabling it to leverage its technology portfolio globally while meeting local customer demands. Axalta's competitive advantages include proprietary color-matching formulations that would be costly for competitors to replicate, a portfolio of sustainable and high-performance products, and strong customer relationships built on reliability and technical service. The company generates revenue through both transactional sales and indexed pricing arrangements, with over 50% of Mobility Coatings revenue tied to raw material indices, providing a natural hedge against cost volatility.
【Margin resilience amid demand recovery】 Management expects 2026 to begin with softer demand in Performance Coatings due to distributor destocking and industrial weakness, followed by sequential improvement beginning in the second quarter as destocking abates, claims activity stabilizes, and Class 8 commercial vehicle production recovers. The company plans to implement mid-single-digit pricing in Refinish during 2026 to offset inflation impacts, while maintaining its disciplined cost structure and productivity initiatives to sustain adjusted EBITDA margins above 22% for the full year. Management anticipates positive price mix inflecting positively from Q2 onward across Performance Coatings, supported by volume recovery in the second half driven by interest rate reductions, easing insurance costs, and higher used vehicle prices. The pending merger with Akzo Nobel is expected to strengthen the combined portfolio, enhance the financial profile, and create significant long-term value, with management identifying $600 million in synergy potential and targeting combined EBITDA margins approaching 20% on an investment-grade balance sheet.
| Metric | Target | Period |
|---|---|---|
| Net sales | up low single digits | FY2026 |
| Adjusted diluted earnings per share | $2.55–$2.70 | FY2026 |
| Adjusted EBITDA | $1,140–$1,170 million | FY2026 |
| Adjusted EBITDA margin | above 22% | FY2026 |
| Free cash flow | greater than $500 million | FY2026 |
| Interest expense | approximately $150 million | FY2026 |
| Global auto production | approximately 91 million builds | FY2026 |
| North America Class 8 builds | approximately 274,000 units | FY2026 |
| Net leverage ratio | below 2x | End of FY2026 |
Net sales (FY2026): “For the full year, we expect revenue to be up low single digits, driven by positive price mix, favorable FX, and higher volumes in the second half.”
Adjusted diluted earnings per share (FY2026): “We expect adjusted diluted earnings per share to be between $2.55 and $2.70 per share, representing approximately 5% growth at the midpoint versus 2025.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.1B | 5.1B | 5.3B | 5.2B | 4.9B | 4.4B |
| Net Income | 369M | 378M | 391M | 267M | 192M | 264M |
| EPS | $1.45 | $1.74 | $1.78 | $1.21 | $0.86 | $1.14 |
| Free Cash Flow | 488M | 453M | 436M | 437M | 143M | 437M |
| ROIC | 10.1% | 10.5% | 11.9% | 9.7% | 6.9% | 8.3% |
| Gross Margin | - | 34.4% | 34.1% | 31.2% | 29.0% | 32.4% |
| Debt/Equity | 1.30 | 1.41 | 1.84 | 2.09 | 2.62 | 2.67 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 705M | 735M | 706M | 588M | 423M | 462M |
| Operating Margin | 13.8% | 14.4% | 13.4% | 11.3% | 8.7% | 10.5% |
| ROE | 15.2% | 17.8% | 21.5% | 16.8% | 13.0% | 18.0% |
| Shares Outstanding | 256M | 217M | 220M | 221M | 223M | 231M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.4B | 4.1B | 4.1B | 4.4B | 4.7B | 4.5B | 3.7B | 4.4B | 4.9B | 5.2B | 5.3B | 5.1B | 5.1B |
| Gross Margin | 34.0% | 36.8% | 38.2% | 36.5% | 33.9% | 34.9% | 34.2% | 32.4% | 29.0% | 31.2% | 34.1% | 34.4% | N/A |
| R&D | 50M | 52M | 58M | 65M | 73M | 70M | 55M | 62M | 66M | 74M | 74M | 71M | 72M |
| SG&A | 992M | 915M | 960M | 935M | 876M | 822M | 695M | 739M | 772M | 840M | 847M | 805M | 803M |
| EBIT | 370M | 466M | 405M | 364M | 442M | 488M | 306M | 462M | 423M | 588M | 706M | 735M | 705M |
| Op. Margin | 8.4% | 11.3% | 9.9% | 8.3% | 9.4% | 10.9% | 8.2% | 10.5% | 8.7% | 11.3% | 13.4% | 14.4% | 13.8% |
| Net Income | 27M | 92M | 39M | 37M | 207M | 249M | 122M | 264M | 192M | 267M | 391M | 378M | 369M |
| Net Margin | 0.6% | 2.2% | 0.9% | 0.8% | 4.4% | 5.6% | 3.3% | 6.0% | 3.9% | 5.2% | 7.4% | 7.4% | 7.2% |
| Non-Recurring | 8.5M | 63M | 116M | 44M | 80M | 52M | 78M | 59M | 27M | 19M | 65M | 30M | 16M |
| Returns on Capital | |||||||||||||
| ROIC | N/A | 11.8% | 6.2% | 5.3% | 8.0% | 8.6% | 7.4% | 8.3% | 6.9% | 9.7% | 11.9% | 10.5% | 10.1% |
| ROE | N/A | 8.4% | 3.5% | 3.1% | 16.7% | 19.5% | 8.7% | 18.0% | 13.0% | 16.8% | 21.5% | 17.8% | 15.2% |
| ROA | N/A | 3.1% | 0.7% | 0.6% | 3.1% | 3.7% | 1.7% | 3.7% | 2.7% | 3.7% | 5.4% | 5.1% | 4.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 251M | 410M | 559M | 540M | 496M | 573M | 509M | 559M | 294M | 575M | 576M | 649M | 691M |
| Free Cash Flow | 63M | 272M | 423M | 415M | 353M | 461M | 427M | 437M | 143M | 437M | 436M | 453M | 488M |
| Owner Earnings | -65M | -93M | -99M | -304M | -462M | 204M | 174M | 227M | -31M | 273M | 268M | 329M | -893M |
| CapEx | 188M | 138M | 136M | 125M | 143M | 113M | 82M | 122M | 151M | 138M | 140M | 196M | 203M |
| Maint. CapEx | 309M | 472M | 617M | 805M | 921M | 353M | 320M | 317M | 303M | 276M | 280M | 295M | 1.6B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 309M | 472M | 617M | 805M | 921M | 353M | 320M | 317M | 303M | 276M | 280M | 295M | 1.6B |
| CapEx/OCF | 74.9% | 33.7% | 24.4% | 23.1% | 28.9% | 19.6% | 16.1% | 21.8% | 51.4% | 24.0% | 24.3% | 30.2% | 29.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 58M | 254M | 105M | 26M | 244M | 200M | 50M | 100M | 165M | 165M |
| Buyback Yield | N/A | N/A | N/A | 0.7% | 4.6% | 1.5% | 0.4% | 3.2% | 3.5% | 0.7% | 1.3% | 2.3% | 2.0% |
| Stock-Based Comp | 8.0M | 30M | 41M | 39M | 37M | 16M | 15M | 15M | 22M | 26M | 28M | 25M | 27M |
| Debt Repayment | 121M | 127M | 1.8B | 50M | 511M | 28M | 1.2B | 27M | 2.0B | 904M | 420M | 230M | 230M |
| Balance Sheet | |||||||||||||
| Net Debt | -351M | 3.0B | 2.7B | 3.1B | 3.2B | 2.9B | 2.6B | 3.2B | 3.2B | 2.9B | 2.9B | 2.7B | 2.5B |
| Cash & Equiv. | 382M | 485M | 535M | 770M | 694M | 1.0B | 1.4B | 841M | 645M | 700M | 593M | 657M | 608M |
| Long-Term Debt | 700K | 3.4B | 3.2B | 3.9B | 3.8B | 3.8B | 3.8B | 3.7B | 3.7B | 3.5B | 3.4B | 3.2B | 3.1B |
| Debt/Equity | N/A | 3.21 | 2.90 | 3.07 | 3.21 | 2.90 | 2.79 | 2.67 | 2.62 | 2.09 | 1.84 | 1.41 | 1.30 |
| Interest Coverage | 1.7 | 2.4 | 2.3 | 2.5 | 2.8 | 3.0 | 2.0 | 3.4 | 3.0 | 2.8 | 3.4 | 4.2 | 4.1 |
| Equity | N/A | 1.1B | 1.1B | 1.3B | 1.2B | 1.4B | 1.4B | 1.5B | 1.5B | 1.7B | 1.9B | 2.3B | 2.4B |
| Total Assets | N/A | 5.8B | 5.9B | 6.8B | 6.7B | 6.8B | 7.2B | 7.2B | 7.1B | 7.3B | 7.2B | 7.6B | 7.6B |
| Total Liabilities | N/A | 4.7B | 4.6B | 5.4B | 5.4B | 5.4B | 5.7B | 5.7B | 5.6B | 5.5B | 5.3B | 5.2B | 5.1B |
| Intangibles | N/A | 1.2B | 1.1B | 1.4B | 1.3B | 1.2B | 1.1B | 1.3B | 1.1B | 1.1B | 1.1B | 1.1B | 1.1B |
| Retained Earnings | N/A | -133M | -58M | -21M | 199M | 443M | 563M | 827M | 1.0B | 1.3B | 1.7B | 2.1B | 2.1B |
| Working Capital | N/A | 973M | 978M | 1.2B | 1.3B | 1.5B | 1.7B | 1.2B | 1.3B | 1.4B | 1.4B | 1.4B | 1.5B |
| Current Assets | N/A | 1.8B | 1.9B | 2.3B | 2.3B | 2.6B | 2.9B | 2.6B | 2.7B | 2.8B | 2.7B | 2.8B | 2.8B |
| Current Liabilities | N/A | 875M | 942M | 1.1B | 1.0B | 1.1B | 1.2B | 1.3B | 1.4B | 1.4B | 1.4B | 1.4B | 1.3B |
| Per Share Data | |||||||||||||
| EPS | 0.12 | 0.38 | 0.16 | 0.15 | 0.85 | 1.06 | 0.52 | 1.14 | 0.86 | 1.21 | 1.78 | 1.74 | 1.45 |
| Owner EPS | -0.29 | -0.38 | -0.41 | -1.24 | -1.90 | 0.87 | 0.74 | 0.98 | -0.14 | 1.24 | 1.22 | 1.51 | -3.49 |
| Book Value | N/A | 4.45 | 4.64 | 5.22 | 4.95 | 5.76 | 6.13 | 6.45 | 6.51 | 7.83 | 8.70 | 10.80 | 9.47 |
| Cash Flow/Share | 1.10 | 1.70 | 2.31 | 2.21 | 2.04 | 2.44 | 2.18 | 2.41 | 1.32 | 2.61 | 2.62 | 2.99 | 7.53 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 228.3M | 241.1M | 242.5M | 244.7M | 243.6M | 234.9M | 233.8M | 231.5M | 223.3M | 220.7M | 219.7M | 217.2M | 255.7M |
| Valuation | |||||||||||||
| P/E Ratio | 221.9 | 68.3 | 168.8 | 215.5 | 26.9 | 28.6 | 54.6 | 28.8 | 29.4 | 28.3 | 19.3 | 18.6 | 22.7 |
| P/FCF | 96.5 | 23.6 | 15.5 | 19.1 | 15.8 | 15.4 | 15.5 | 17.4 | 39.5 | 17.3 | 17.3 | 15.5 | 17.2 |
| EV/EBIT | 25.2 | 19.0 | 21.7 | 28.4 | 18.3 | 18.3 | 25.7 | 21.2 | 19.1 | 16.5 | 13.9 | 12.2 | 15.5 |
| Price/Book | 5.8 | 6.0 | 5.8 | 6.2 | 4.6 | 5.3 | 4.6 | 5.1 | 3.9 | 4.4 | 3.9 | 3.0 | 3.5 |
| Price/Sales | 1.3 | 1.7 | 1.6 | 1.7 | 1.5 | 1.5 | 1.5 | 1.6 | 1.2 | 1.3 | 1.5 | 1.3 | 1.6 |
| FCF Yield | 1.0% | 4.2% | 6.5% | 5.2% | 6.3% | 6.5% | 6.4% | 5.8% | 2.5% | 5.8% | 5.8% | 6.4% | 5.8% |
| Market Cap | 6.1B | 6.4B | 6.5B | 7.9B | 5.6B | 7.1B | 6.6B | 7.6B | 5.6B | 7.6B | 7.5B | 7.0B | 8.4B |
| Avg. Price | 24.47 | 29.42 | 27.03 | 30.84 | 29.40 | 27.78 | 24.11 | 30.45 | 25.77 | 29.69 | 34.93 | 31.47 | 32.76 |
| Year-End Price | 26.63 | 26.64 | 27.01 | 32.33 | 22.87 | 30.27 | 28.38 | 32.80 | 25.32 | 34.25 | 34.37 | 32.42 | 32.76 |
Axalta Coating Systems Ltd. passes 5 of 9 quality checks, suggesting mixed fundamentals.
Axalta Coating Systems Ltd. trades at 18.8x trailing earnings, compared to its 15-year median P/E of 28.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 15.4x vs a median of 16.5x. The company's 5-year average ROIC is 9.5% with a gross margin of 32.2%. Total shareholder yield (buybacks) is 2.0%. At current prices, the estimated annualized return to fair value is +1.1%.
Axalta Coating Systems Ltd. (AXTA) reported annual revenue of $5.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Axalta Coating Systems Ltd. (AXTA) has a net profit margin of 7.4%. This is a modest margin.
Axalta Coating Systems Ltd. (AXTA) generated $453 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Axalta Coating Systems Ltd. (AXTA) has a debt-to-equity ratio of 1.41. This indicates moderate leverage.
Axalta Coating Systems Ltd. (AXTA) reported earnings per share (EPS) of $1.74 in its most recent fiscal year.
Axalta Coating Systems Ltd. (AXTA) has a return on equity (ROE) of 17.8%. This indicates the company generates strong returns for shareholders.
Axalta Coating Systems Ltd. (AXTA) has a 5-year average gross margin of 32.2%. This indicates decent pricing power.
The Ledger Terminal provides 13 years of financial data for Axalta Coating Systems Ltd. (AXTA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Axalta Coating Systems Ltd. (AXTA) has a book value per share of $10.80, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to begin with softer demand in Performance Coatings due to distributor destocking and industrial weakness, followed by sequential improvement beginning in the second quarter as destocking abates, claims activity stabilizes, and Class 8 commercial vehicle production recovers. The company plans to implement mid-single-digit pricing in Refinish during 2026 to offset inflation impacts, while maintaining its disciplined cost structure and productivity initiatives to sustain adjusted EBITDA margins above 22% for the full year. Management anticipates positive price mix inflecting positively from Q2 onward across Performance Coatings, supported by volume recovery in the second half driven by interest rate reductions, easing insurance costs, and higher used vehicle prices. The pending merger with Akzo Nobel is expected to strengthen the combined portfolio, enhance the financial profile, and create significant long-term value, with management identifying $600 million in synergy potential and targeting combined EBITDA margins approaching 20% on an investment-grade balance sheet.
Based on recent SEC filings and earnings calls, Axalta Coating Systems Ltd. (AXTA) has provided the following forward guidance: Net sales: up low single digits (FY2026); Adjusted diluted earnings per share: $2.55–$2.70 (FY2026); Adjusted EBITDA: $1,140–$1,170 million (FY2026); Adjusted EBITDA margin: above 22% (FY2026); Free cash flow: greater than $500 million (FY2026), plus 4 additional metrics.
Adjusted EBITDA (FY2026): “Adjusted EBITDA is expected to be between $1,140 million and $1,170 million, which will be another record year for Axalta.”
Adjusted EBITDA margin (FY2026): “Adjusted EBITDA margins are also expected to be above 22% for the year.”
Free cash flow (FY2026): “And finally, we expect full year free cash flow of greater than $500 million, even as we continue to drive productivity by investing $180 million-$200 million of CapEx back in the business.”
Interest expense (FY2026): “For full-year 2026, we expect interest expense of approximately $150 million, representing an improvement of more than $25 million versus last year and nearly 27% lower than 2024.”
Global auto production (FY2026): “In mobility, we are now assuming global auto production of approximately 91 million builds, down from our prior outlook of 92 million units.”
North America Class 8 builds (FY2026): “In commercial vehicle, external forecasts for North America Class 8 builds have increased, and we now assume approximately 274,000 units, up 10% from previous expectations.”