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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#707
Positioning
Market Dominance
Manufacturing
Chemicals
$6.2B
Rakesh Sachdev
Axalta Coating Systems Ltd. manufactures, markets, and distributes high-performance coatings systems. It operates through two segments, Performance Coatings and Transportation Coatings. The company develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles.
Headcount
12.0K
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = AXTA ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AXTA Axalta Coating Systems Ltd. | 60 | 60 | 75 | 47 | 17.5x | 7.0x | 17.6% | 5.5% | 34.8% | 14.8% | 8.1% | -4.7% | 0.0% | 218.0x | $6.2B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Axalta Coating Systems Ltd. (AXTA) receives a "Hold" rating with a composite score of 59.8/100. It ranks #707 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
PHILADELPHIA, Pennsylvania
In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for AXTA.
View All RatingsROIC 18.4% vs WACC 7.8% (spread +10.6%)
GM 35% vs sector 44%, OM 15% vs sector 3%
Capital turnover 1.83x, R&D intensity 1.4%
Rev growth -5%, 10yr history
Interest coverage 4.2x, Net debt/EBITDA 2.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Axalta Coating Systems Ltd. (AXTA) as a Hold with a composite score of 59.8/100 at a current price of $34.18. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
Axalta Coating Systems Ltd. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 59.8/100 places it at rank #707 in our full universe.
Narrow
High
Poor
Undervalued
Returns on equity of 17.6% exceed cost of capital.
Value factor score of 75 suggests attractive pricing.
Stable competitive position in a defensive sector.
Leverage of 218% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
Axalta Coating Systems Ltd. represents a hold based on multi-factor quantitative performance.
Our model assigns Axalta Coating Systems Ltd. a Hold rating, with a composite score of 59.8/100 and 3 out of 5 stars. Ranked #707 of 7,333 stocks, AXTA presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 60/100, AXTA shows adequate but unremarkable business quality. The company reports a return on equity of 17.6% (sector avg: -1.9%), gross margins of 34.8% (sector avg: 44.1%), net margins of 8.1% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
AXTA carries a solid value score of 75/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 17.48x, an EV/EBITDA of 6.99x, a P/B ratio of 3.07x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 42/100, AXTA exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -4.7% vs. a sector average of 6.7% and a return on assets of 5.5% (sector: 0.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
AXTA is currently showing below-average momentum at 47/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -4.7% year-over-year, while a beta of 1.01 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
AXTA shows good financial stability with a score of 79/100. Key stability metrics include a beta of 1.01 and a debt-to-equity ratio of 218.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
AXTA carries a short interest score of 66/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 218.00x). At $6.2B market cap (mid-cap), Axalta Coating Systems Ltd. offers reasonable institutional liquidity.
Axalta Coating Systems Ltd. is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #707 of 7,333 overall (90th percentile). Key comparisons include ROE of 17.6% exceeding the -1.9% sector median and operating margins of 14.8% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While AXTA currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Investment (42) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 39% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 1026% BELOW SECTOR MEDIAN
Gross Margin 21% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Arnhold LLC significantly increased its stake in Axalta Coating Systems, more than doubling its position from 236,419 shares to 500,700 shares in Q4, with the holding now valued at $16.2 million and representing 1.2% of the firm's $1.3 billion AUM. Despite the aggressive purchase, Axalta shares have underperformed, declining 11.1% over the past year compared to the S&P 500's 15.4% gain.
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Leeward Investments purchased 323,314 shares of Axalta Coating Systems for approximately $9.48 million in February 2026, despite the stock being down nearly 10% over the past year. The investment appears contrarian, as Axalta has delivered strong operational results including record adjusted EBITDA of $294 million and 22.8% margins, suggesting the stock's underperformance may mask improving fundamentals.
Trinity Street Asset Management completely exited its position in Axalta Coating Systems, selling 770,919 shares worth approximately $22.1 million. The exit represents a full liquidation of the fund's stake in the specialty coatings company. Trinity simultaneously increased its positions in higher-growth companies like Taiwan Semiconductor Manufacturing, suggesting the fund manager sees better growth prospects in the semiconductor and technology sectors compared to the slower-growing industrial coatings industry.
Graphic Packaging delivers fiber-based packaging solutions to major consumer brands worldwide, serving food, beverage, and retail sectors.