AXTA

Axalta Coating Systems

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Basic Materials

industry

Specialty Chemicals

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/30/26

Business Summary

Axalta Coating Systems generates cash by manufacturing and selling high-performance coatings used in transportation, industrial, and refinish applications. The business benefits from recurring demand in vehicle repair and industrial maintenance, where coatings are consumable and performance-critical rather than discretionary. Its moat is rooted in formulation expertise, customer qualification cycles, and integration into OEM and refinish distribution networks that create switching costs. With operating margins at 16.10%, the model demonstrates pricing power and process efficiency, allowing it to convert specialized chemical inputs into high-value, performance-driven end products.

VALUATION

P/E

16.6

Market Cap ($M USD)

$6,155

Forward P/E

10.2

PEG

1.1

PRICE TO SALES

1.2

PRICE TO BOOK

2.6

EV / EBITDA

8.6

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$1.75

Next Year EPS Growth Estimate

$2.82

Next Year Revenue Growth Estimate

3.30%

Return on Equity (ROE)

16.10%

Operating Margin

14.40%

Debt-to-Equity

1.4

Piotroski F-Score

6

Altman Z-Score

2.3

Return on Invested Capital (ROIC)

9.20%%

Current Ratio

2.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

AXTA screens as a classic GARP candidate with asymmetric setup. A 16.6 P/E collapsing to a 10.2 Forward P/E implies a sharp earnings inflection, and the 1.1 forward PEG suggests growth is being priced almost fairly, not aggressively. The Altman Z-Score of 2.3 puts the company in the gray zone—not distressed, but not fortress-grade either—while a 2.1 current ratio supports near-term liquidity stability. At a $6,155M market cap with a 1.2 Price/Sales and 2.6 Price/Book, the market is valuing this as a stable cyclical rather than a compounder, which creates potential mispricing if the earnings ramp materializes as projected.

AI Exposure / Tech Reliance

As a Specialty Chemicals company, AXTA operates in a segment where process optimization, formulation efficiency, and automation increasingly intersect with AI-driven manufacturing systems. Digital coating technologies and predictive maintenance integration across industrial customers create structural resilience. While not a pure AI play, the business is levered to industrial modernization rather than being disrupted by it.

The Bull Case

A value-oriented GARP investor buys this because the internal math works. A 9.20% ROIC against a 16.10% operating margin shows the company can convert revenue into real operating profit, and a Piotroski F-Score of 6 signals decent balance sheet and earnings quality discipline. The 10.2 Forward P/E against $1.75 in next-year EPS suggests a meaningful earnings acceleration relative to today’s 16.6 multiple, implying forward multiple compression without price appreciation. With a modest 14.40% Debt/Equity and a 2.1 current ratio, the balance sheet is not overextended, and at 1.2 Price/Sales, investors are not overpaying for revenue durability. This is a steady compounder priced like a cyclical.

The Bear Case

The red flags are subtle but real. A 3.30% Return on Equity is weak relative to the 2.6 Price/Book multiple, indicating inefficient equity utilization. The 1.1 PEG Forward suggests growth is only fairly valued—not cheap—and any disappointment in the projected EPS of $1.75 could quickly re-rate the 10.2 Forward P/E higher. The Altman Z-Score of 2.3 keeps the firm out of the safe zone, meaning macro shocks or demand contraction could pressure solvency metrics. Add in a 1.4 TTM yield with no stated dividend per share and zero 5-year average dividend growth, and shareholders are not being materially compensated while they wait.

Market Sentiment & Smart Money

Short Interest %

3.20%

Analyst Consensus

2.13

Average Analyst Price Target

$37.07

Institutional Ownership %

110.80%

1-Year Beta

1.01

Insider Buying % (6 Mo)

0.50%%

Distance to 52-Week High

80.80%%

Distance to 52-Week Low

115.70%%