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Fundamental analysis: Axalta Coating Systems Ltd. (AXTA)

Awarener score: 6.2

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

• Business has been shrinking. It's been substantially worse when measured against peer companies.
• Axalta Coating Systems Ltd. business trend stability is good. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 6.3

• AXTA profit margins -on goods and services sold- are usually hardly sufficient. They stand well ranked against rival companies.
• Business profit on sales tends to be good. It's almost average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually good. They remain rather normal in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still slightly worse than similar companies.
• Profits -before income taxes- are usually sufficient considering total sales, and remain almost average when measured against rivals.
• Total net profit tends to be sufficient when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 6.0

• Axalta Coating Systems Ltd. profit -on goods and services sold- has been growing at a normal pace. It's been a slight improvement compared to competitors.
• In recent years, earnings -on operations- have been growing at a very low step, which has been slightly worse than comparable firms.
• Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be rather normal in relation to similar stocks.
• In past years, profits -before income taxes- grew at a very good speed. It was somewhat better than rivals.
• In the previous years, growth trend on total net profit has been very good, and more than average in relation to peer companies.
• Earnings per share have grown at an excellent rhythm in past years. It's been in good shape compared to industry peers.

Miscellaneous score: 7.7

• AXTA had to pay sparse income taxes in relation to profits made in the past years. It's been slightly better than peers.
• Research and development expenses hardly consume a portion of revenues. It's encouraging in relation to competitors.
• The company shows business growth in relation to research and development efforts. It stands close to average when compared to rival companies.

Profitability score: 10.0

• Axalta Coating Systems Ltd. usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
• The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
• Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
• In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 4.7

• AXTA usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands top tier when measured against rival firms.
• The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is substantially worse when measured against industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
• The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks below average when measured against competitors.

Balance Sheet score: 6.9

• Axalta Coating Systems Ltd. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
• The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be close to average when compared to similar firms.
• All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks similar to rivals.
• For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's close to average when compared to peer firms.
• For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
• Usually, sales are mostly on cash. It still ranks great when measured against peers.
• Normally has approximately only a couple of weekly sales worth in inventory. It comes up as excellent in relation to competitors.
• On average, it takes less than one month from the purchase to charging customers. It happens to be top-notch against peers.
• Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
• The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's impressive in relation to similar companies.
• Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands mediocre against rival firms.
• There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
• Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
• Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 5.0

• Axalta Coating Systems Ltd. looks very expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
• In the past twelve months, the company consumed funds. Either it reinvested in the business or genuine fund generation might be challenging, which stands worse than most similar companies.
• The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still below average when measured against industry firms.
• In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
• The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks better than most similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks weak when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
• The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
• In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.5

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Awarener score: 6.2

Conclusion

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