ScoreWhy is Axalta Coating Systems Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 6.23% and Operating profit at 18.46% over the last 5 years
2
Positive results in Jun 25
- ROCE(HY) Highest at 22.09%
- DEBT-EQUITY RATIO (HY) Lowest at 123.05 %
- INTEREST COVERAGE RATIO(Q) Highest at 563.27
3
With ROCE of 15.91%, it has a attractive valuation with a 2.09 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -25.61%, its profits have risen by 40.9% ; the PEG ratio of the company is 0.4
4
Below par performance in long term as well as near term
- Along with generating -25.61% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Axalta Coating Systems Ltd. should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Axalta Coating Systems Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Axalta Coating Systems Ltd.
-27.91%
-0.54
31.75%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.23%
EBIT Growth (5y)
18.46%
EBIT to Interest (avg)
3.12
Debt to EBITDA (avg)
3.47
Net Debt to Equity (avg)
1.37
Sales to Capital Employed (avg)
0.97
Tax Ratio
20.32%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.29%
ROE (avg)
17.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
3.58
EV to EBIT
13.14
EV to EBITDA
9.66
EV to Capital Employed
2.09
EV to Sales
1.96
PEG Ratio
0.44
Dividend Yield
NA
ROCE (Latest)
15.91%
ROE (Latest)
19.35%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
ROCE(HY)
Highest at 22.09%
DEBT-EQUITY RATIO
(HY)
Lowest at 123.05 %
INTEREST COVERAGE RATIO(Q)
Highest at 563.27
RAW MATERIAL COST(Y)
Fallen by -2.42% (YoY
OPERATING PROFIT(Q)
Highest at USD 276 MM
OPERATING PROFIT MARGIN(Q)
Highest at 21.15 %
-2What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 4.44 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.85 times
Here's what is working for Axalta Coating Systems Ltd.
Interest Coverage Ratio
Highest at 563.27
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 123.05 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Profit
Highest at USD 276 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 21.15 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Raw Material Cost
Fallen by -2.42% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 74 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Axalta Coating Systems Ltd.
Inventory Turnover Ratio
Lowest at 4.44 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.85 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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