📊 AXTA Key Takeaways
Is Axalta Coating Systems Ltd. (AXTA) a Good Investment?
Axalta demonstrates solid operational profitability with a 14.4% operating margin and healthy free cash flow generation of $453M, but faces headwinds from flat revenue growth and margin compression on net income. The company maintains reasonable financial leverage and liquidity positions, though elevated debt levels relative to equity warrant monitoring.
Axalta shows solid core profitability, healthy free cash flow generation, and adequate liquidity, which support a fundamentally stable business. However, flat revenue, slightly declining earnings, and still-elevated leverage limit the quality of the growth profile and reduce upside from fundamentals alone.
Why Buy Axalta Coating Systems Ltd. Stock? AXTA Key Strengths
- Strong free cash flow conversion at 8.9% FCF margin with $453M annual generation
- Solid interest coverage ratio of 4.2x provides adequate debt service capability
- Healthy current ratio of 2.06x and quick ratio of 1.50x indicate adequate liquidity
- Respectable ROE of 16.1% demonstrates efficient use of shareholder capital
- Operating margin of 14.4% reflects operational efficiency in manufacturing
- Operating margin of 14.4% and ROE of 16.1% indicate a profitable, reasonably efficient business
- Free cash flow of $453M and an 8.9% FCF margin show the company converts earnings into cash at a healthy level
- Liquidity is solid with a 2.06x current ratio, 1.50x quick ratio, and $657M of cash
AXTA Stock Risks: Axalta Coating Systems Ltd. Investment Risks
- Revenue growth stagnation at 0.0% YoY suggests competitive pressures or market maturity challenges
- Net income declining 0.3% YoY despite stable revenue indicates margin compression and cost pressures
- Elevated debt-to-equity ratio of 1.36x with $3.2B long-term debt creates financial leverage risk
- Absence of gross margin data limits visibility into pricing power and input cost management
- EPS declining 2.2% YoY on diluted basis suggests share dilution or profitability headwinds
- Revenue was flat year over year, suggesting limited near-term growth momentum
- Debt remains meaningful with $3.18B of long-term debt and 1.36x debt-to-equity
- Interest coverage of 4.2x is acceptable but not especially strong if financing costs stay elevated or earnings soften
Key Metrics to Watch
- Revenue growth trajectory and market share trends in paints and coatings sector
- Operating margin sustainability as input costs and competition evolve
- Debt reduction progress and debt-to-equity ratio improvement
- Free cash flow consistency and capital allocation priorities
- Gross margin trends once disclosed to assess pricing versus cost dynamics
- Organic revenue growth and margin expansion
- Debt reduction and interest coverage improvement
Axalta Coating Systems Ltd. (AXTA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.06x current ratio provides a solid financial cushion.
AXTA Profit Margin, ROE & Profitability Analysis
AXTA vs Market Sector: How Axalta Coating Systems Ltd. Compares
How Axalta Coating Systems Ltd. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Axalta Coating Systems Ltd. Stock Overvalued? AXTA Valuation Analysis 2026
Based on fundamental analysis, Axalta Coating Systems Ltd. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Axalta Coating Systems Ltd. Balance Sheet: AXTA Debt, Cash & Liquidity
AXTA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Axalta Coating Systems Ltd.'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.21 reflects profitable operations.
AXTA Revenue Growth, EPS Growth & YoY Performance
AXTA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.3B | $101.0M | $0.46 |
| Q2 2025 | $1.3B | $109.0M | $0.50 |
| Q1 2025 | $1.3B | $41.0M | $0.18 |
| Q3 2024 | $1.3B | $72.0M | $0.33 |
| Q2 2024 | $1.3B | $61.0M | $0.27 |
| Q1 2024 | $1.3B | $41.0M | $0.18 |
| Q3 2023 | $1.2B | $62.4M | $0.28 |
| Q2 2023 | $1.2B | $44.1M | $0.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Axalta Coating Systems Ltd. Dividends, Buybacks & Capital Allocation
AXTA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Axalta Coating Systems Ltd. (CIK: 0001616862)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772752321.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772752289.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772752253.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772752213.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772752185.xml | View → |
❓ Frequently Asked Questions about AXTA
What is the AI rating for AXTA?
Axalta Coating Systems Ltd. (AXTA) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AXTA's key strengths?
Claude: Strong free cash flow conversion at 8.9% FCF margin with $453M annual generation. Solid interest coverage ratio of 4.2x provides adequate debt service capability. ChatGPT: Operating margin of 14.4% and ROE of 16.1% indicate a profitable, reasonably efficient business. Free cash flow of $453M and an 8.9% FCF margin show the company converts earnings into cash at a healthy level.
What are the risks of investing in AXTA?
Claude: Revenue growth stagnation at 0.0% YoY suggests competitive pressures or market maturity challenges. Net income declining 0.3% YoY despite stable revenue indicates margin compression and cost pressures. ChatGPT: Revenue was flat year over year, suggesting limited near-term growth momentum. Debt remains meaningful with $3.18B of long-term debt and 1.36x debt-to-equity.
What is AXTA's revenue and growth?
Axalta Coating Systems Ltd. reported revenue of $5.1B.
Does AXTA pay dividends?
Axalta Coating Systems Ltd. does not currently pay dividends.
Where can I find AXTA SEC filings?
Official SEC filings for Axalta Coating Systems Ltd. (CIK: 0001616862) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AXTA's EPS?
Axalta Coating Systems Ltd. has a diluted EPS of $1.74.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AXTA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Axalta Coating Systems Ltd. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AXTA stock overvalued or undervalued?
Valuation metrics for AXTA: ROE of 16.1% (sector avg: 15%), net margin of 7.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy AXTA stock in 2026?
Our dual AI analysis gives Axalta Coating Systems Ltd. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AXTA's free cash flow?
Axalta Coating Systems Ltd.'s operating cash flow is $649.0M, with capital expenditures of $196.0M. FCF margin is 8.9%.
How does AXTA compare to other Market stocks?
Vs Default sector averages: Net margin 7.4% (avg: 12%), ROE 16.1% (avg: 15%), current ratio 2.06 (avg: 1.8).