📊 AXTA Key Takeaways
Is Axalta Coating Systems Ltd. (AXTA) a Good Investment?
Axalta faces significant financial stress with interest coverage of 0.8x indicating inability to service debt from operating income, compounded by flat revenue growth and declining EPS. Poor capital efficiency (ROE 3.7%, ROA 1.2%) and high leverage (1.31x Debt/Equity) limit financial flexibility, though adequate liquidity provides near-term cushion.
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 liquidity position with $608M cash and 2.1x current ratio
- Reasonable operating margin of 11.6% demonstrates some pricing power
- Positive operating cash flow of $68M shows base business generating cash
- 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
- Critical: Interest coverage of 0.8x means operating income cannot cover interest expenses—financial distress indicator
- Zero revenue growth YoY with declining diluted EPS (-2.2%) signals business contraction and margin compression
- High financial leverage (1.31x Debt/Equity, $3.2B long-term debt) limits strategic flexibility and refinancing options
- Minimal free cash flow generation ($18M FCF, 1.4% FCF margin) relative to asset base and debt obligations
- 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
- Interest coverage ratio trend—must move above 1.25x to indicate financial stabilization
- Revenue growth acceleration—current 0% growth unsustainable with debt burden
- Free cash flow generation and debt reduction pace relative to interest obligations
- Operating margin sustainability under potential economic slowdown
- Organic revenue growth and margin expansion
- Debt reduction and interest coverage improvement
Axalta Coating Systems Ltd. (AXTA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.4% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.10x 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. shows some fundamental concerns 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 |
|---|---|---|---|
| Q1 2026 | $1.3B | $90.0M | $0.42 |
| 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 |
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
❓ Frequently Asked Questions about AXTA
What is the AI rating for AXTA?
Axalta Coating Systems Ltd. (AXTA) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AXTA's key strengths?
Claude: Strong liquidity position with $608M cash and 2.1x current ratio. Reasonable operating margin of 11.6% demonstrates some pricing power. 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: Critical: Interest coverage of 0.8x means operating income cannot cover interest expenses—financial distress indicator. Zero revenue growth YoY with declining diluted EPS (-2.2%) signals business contraction and margin compression. 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 $1.3B.
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 $0.42.
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 May 2026, Axalta Coating Systems Ltd. has a SELL rating with 78% 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 3.7% (sector avg: 15%), net margin of 7.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AXTA stock in 2026?
Our dual AI analysis gives Axalta Coating Systems Ltd. a combined SELL 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 $68.0M, with capital expenditures of $50.0M. FCF margin is 1.4%.
How does AXTA compare to other Market stocks?
Vs Default sector averages: Net margin 7.2% (avg: 12%), ROE 3.7% (avg: 15%), current ratio 2.10 (avg: 1.8).