Is the business good?
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.
11%
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 9.1% · 12 months to Q1 2026
- Cash conversion
- 1.32×
Cash conversion · 0.91× a year ago · every dollar of reported profit arrived as cash, and more
- 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 from the cash flow statement.
Specialty Chemicals
Ranks #21 of 36 by Smart Score