Axalta Coating Systems (AXTA) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Basic Materials•Specialty Chemicals

AverageMetricSide Score: 58/100

ProfitabilityProfit20/30

GrowthGrowth6/25

Balance SheetBalance16/25

Cash QualityCash16/20

Price & Volume

Market Cap $7.50B

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturers (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings for building materials, cabinet, wood and luxury vinyl flooring, and furniture applications under the Imron Industrial, Tufcote Industrial, Corlar Industrial, Strenex Industrial, PercoTop, Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, rail, motorcycles, marine and aviation, trailers, recreational vehicles, and personal sport vehicles under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company also offers products under the Audurra, Abcite, Alesta, AquaEC, Axalta Irus Mix, Axalta Irus Scan, Axalta NextJet, Axalta Nimbus, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Hydropon, Imron ExcelPro, Imron Elite, Imron, Lutophen, Nap-Gard, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, Rival, U-POL, and Vermeera brands. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Philadelphia, Pennsylvania.

Moat Signals

Competitive analysis based on 44 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~14.1% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Strong Moat

Consistently high ROE averaging 18.4% suggests a durable competitive advantage and efficient capital allocation.

Risk Signals

Data-driven red flags and warnings across 44 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~13.8% — no sign of cost or pricing stress.

Earnings Quality

Healthy

FCF covers net income by 1.3x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 1.3 — conservative capital structure with low financial risk.

Revenue Decline

Watch

Revenue has softened, declining in 5 quarters. Monitor for further erosion.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Shares decreased 2.9% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $5.11B
Q. Revenue: $1.25B
TTM EBITDA: $1.01B
TTM Op. Income: $705.00M
Q. Op. Income: $146.00M
TTM Net Income: $369.00M
Q. Net Income: $90.00M
EPS: $0.42
Shares Out.: $213.60M

$5.11B in TTM revenue declined 2.6% YoY, reaching $1.25B last quarter. TTM EBITDA of $1.01B and TTM operating income of $705.00M shows growth is flowing through. Net income of $369.00M TTM confirms the company is converting revenue into profit. Revenue is contracting — assess whether this is cyclical or structural.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 33.2%
EBITDA Margin: 17.7%
Op. Margin: 11.6%
Net Margin: 7.2%

Op. margin of 11.6% is down 2.3% YoY — costs are rising relative to revenue. Net margin at 7.2% and gross margin of 33.2% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 20.3x
P/S Ratio: 1.5x
P/B Ratio: 3.1x

At 20.3x P/E, the stock trades in line with market averages — fairly valued. P/S of 1.5x and P/B of 3.1x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $7.56B
Cash: $611.00M
Long-Term Debt: $3.13B
Book Value: $2.42B
D/E Ratio: 1.3
Debt/EBITDA: 14.1

With $7.56B in assets and $3.13B in long-term debt, the D/E of 1.3and book value of $2.42B — reflects moderate leverage — debt is manageable but worth monitoring.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $68.00M
Free Cash Flow: $18.00M
FCF Margin: 0.4%
FCF / Net Income: 0.2

FCF of $18.00M on $68.00M in operating cash flow. The FCF / Net Income ratio of 0.0x indicates partial cash conversion — earnings quality needs attention.