AXTAAxalta Coating Systems Ltd.
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (1.4×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AXTA?
Axalta Coating Systems Ltd. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.2 points above what the capital costs: growth creates value
- Operating margin
- 14%
Operating margin · Specialty Chemicals median 7.4% · 12 months to Q1 2026
- Cash conversion
- 1.38×
Cash conversion · 0.94× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 8.2% |
| FY2021 | 10% |
| FY2022 | 8.7% |
| FY2023 | 11% |
| FY2024 | 13% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q1 2026
- 34%
- Operating margin12 months to Q1 2026
- 14%
- Net margin12 months to Q1 2026
- 7.2%
- Free cash flow margin
- 9.6%
- R&D as % of revenue
- 1.4%
- Revenue, trailing twelve months
- $5.11B
- Free cash flow, trailing twelve months
- $488M
- Net income, trailing twelve months
- $369M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.