Axalta Coating Systems Ltd. (AXTA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+48.6%

$53.39

vs $35.93 price

Levered DCF

$32.66

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.39

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	18.46×	19.22×	28.07×	29.28×	29.05×	54.9×	28.68×	26.92×
P/B	2.97×	3.92×	4.35×	3.88×	5.12×	4.69×	5.25×	4.64×
P/S	1.36×	1.42×	1.45×	1.16×	1.73×	1.8×	1.59×	1.19×
EV / EBITDA	9.39×	10.63×	12.35×	12.57×	13.48×	15.78×	11.85×	11.01×
Gross margin	32.6%	34.1%	31.2%	29.0%	32.4%	34.2%	34.9%	33.9%
Operating margin	14.9%	13.4%	11.3%	8.7%	10.5%	8.2%	10.9%	9.4%
Net margin	7.4%	7.4%	5.2%	3.9%	6.0%	3.3%	5.6%	4.4%
Current ratio	2.06×	2.01×	1.98×	1.94×	1.93×	2.48×	2.4×	2.22×
Debt / equity	1.45×	1.84×	2.09×	2.62×	2.58×	2.79×	2.9×	3.21×
Interest coverage	3.96×	3.44×	2.76×	3.02×	3.45×	2.04×	3×	2.77×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.7%	0.0%	0.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.1%	20.4%	15.5%	13.2%	17.7%	8.5%	18.4%	17.2%
Return on invested capital	8.4%	9.4%	7.5%	5.5%	6.0%	5.0%	6.4%	6.2%
Return on assets	5.0%	5.4%	3.7%	2.7%	3.7%	1.7%	3.7%	3.1%
Free cash flow yield	6.5%	5.8%	5.8%	2.5%	5.7%	6.4%	6.5%	6.3%
Earnings yield	5.4%	5.2%	3.6%	3.4%	3.4%	1.8%	3.5%	3.7%
Enterprise value	$9.7B	$10.4B	$10.4B	$8.8B	$10.7B	$9.3B	$10B	$8.8B
Net debt / EBITDA	2.64×	2.98×	3.45×	4.5×	3.81×	4.44×	3.44×	3.98×
Cash conversion cycle (days)	109	100	99	98	85	95	89	78