AXTA Stock Fair Value Calculation – Sell Rating Triggered by Share Price Increase in Axalta Coating Systems
June 19, 2023
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Axalta Coating Systems ($NYSE:AXTA), a leading global supplier of liquid and powder coatings, has recently seen a large increase in its share price. This has triggered a sell rating from analysts, due to the stock’s significant appreciation. Axalta Coating Systems produces a variety of coatings tailored to the needs of different industries. Its products are used in the automotive, light and industrial equipment, commercial vehicles, and general industrial markets. The company’s recent price increase has been attributed to the strong performance of its core business in the automotive and commercial vehicle segments.
In addition, Axalta Coating Systems has made significant investments in technology and innovation which have contributed to its growth. The company’s focus on technological advancement has helped increase its competitive advantage, allowing it to stay ahead of the competition. Despite its strong financial performance, analysts have downgraded Axalta Coating Systems’ stock due to concerns over the potential for price volatility. While the company’s short-term outlook remains positive, analysts are concerned that the stock could be subject to sudden changes in market sentiment. Furthermore, some investors fear that the company may not be able to sustain its current rate of growth. Despite these concerns, Axalta Coating Systems remains committed to providing quality coatings that meet the needs of its customers. With continued investments in technology and innovation, the company is well-positioned to maintain its competitive edge in the industry. The company’s focus on developing cutting-edge coatings and services may help it to continue its growth trajectory in the future.
Price History
On Thursday, AXALTA Coating Systems stock opened at $32.4 and closed at $32.6, representing a slight increase of 0.2% from the previous closing price of $32.5. This share price increase has triggered a sell rating on the stock, indicating that investors may wish to reconsider their positions. The share price increase may be driven by the company’s recent quarterly or yearly performance, as well as investor sentiment towards the company’s prospects in the future.
While the company has reported strong growth in revenues and profits in recent quarters, it is important to remember that share prices can rise and fall rapidly and unpredictably. As such, investors may wish to conduct further research and review their portfolios before making any decisions about their investments in AXALTA Coating Systems. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AXTA. More…
| Total Revenues | Net Income | Net Margin |
| 4.99k | 210.6 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AXTA. More…
| Operations | Investing | Financing |
| 285.9 | -101.6 | -249.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AXTA. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7k | 5.39k | 7.09 |
Key Ratios Snapshot
Some of the financial key ratios for AXTA are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | 0.5% | 8.7% |
| FCF Margin | ROE | ROA |
| 2.7% | 18.0% | 3.9% |
Analysis – AXTA Stock Fair Value Calculation
At GoodWhale, we have performed an analysis of AXALTA COATING SYSTEMS’ financials and have determined that the fair value of its share should be around USD 32.5. This was calculated using our proprietary Valuation Line which takes into account various factors such as the company’s revenue, expenses, debts, assets, etc. Currently, AXALTA COATING SYSTEMS stock is traded at USD 32.6, which is very close to our fair value estimation. We believe that this price is a fair one and represents the true value of the share. More…
Peers
Axalta Coating Systems Ltd is one of the world’s leading suppliers of liquid and powder coatings. The company’s products are used in a variety of industries, including automotive, aerospace, architectural, industrial, and consumer applications. Axalta Coating Systems’ competitors include Fuchs Petrolub SE, Itaconix PLC, and Hartalega Holdings Bhd.
– Fuchs Petrolub SE ($OTCPK:FUPBY)
Fuchs Petrolub SE is a specialty chemicals company that produces and markets lubricants, greases, and related specialties. The company operates in three segments: Lubricants, Greases, and Specialties. The Lubricants segment offers engine oils, transmission fluids, and industrial oils. The Greases segment offers greases for the automotive, industrial, and marine industries. The Specialties segment offers metal working fluids, cleaners, and corrosion preventives. Fuchs Petrolub SE was founded in 1931 and is headquartered in Mannheim, Germany.
– Itaconix PLC ($LSE:ITX)
Itaconix PLC is a United Kingdom-based company, which is engaged in the development and commercialization of polymers and other products. The Company’s segments include Polymer Products, which is engaged in the development and commercialization of Itaconicon and other polymers; and Other Products, which is engaged in the development and commercialization of products, including resins, adhesives and coatings. Its products are used in a range of applications, including detergents, hair care, and cosmetics. The Company’s products are sold in the United Kingdom, the United States, Europe, Asia and South America.
– Hartalega Holdings Bhd ($KLSE:5168)
Hartalega Holdings Bhd is a Malaysian-based company that manufactures and sells nitrile gloves. The company has a market cap of 6.22 billion as of 2022 and a return on equity of 23.22%. Hartalega Holdings is the world’s largest producer of nitrile gloves, and has a significant market share in the global glove market. The company has a strong financial position, with robust cash flow and low debt levels. Hartalega Holdings is well-positioned to continue its growth trajectory in the coming years.
Summary
Axalta Coating Systems’ share price has recently seen a significant rise, triggering a “sell” rating from analysts. This may indicate that the stock is currently overvalued relative to its peers in the industry and is due for a pullback. Investors should consider the company’s fundamentals and current competitive position to determine if the stock is really worth its current price. Factors like the company’s earnings growth, cash flow, debt levels and operating margins should be reviewed.
Analysts should also look at industry trends and factors that could impact the company’s competitive positioning, such as technological advancement, geographical expansion or customer demand. Investors should be aware of the risks associated with Axalta Coating Systems, such as declines in customer demand or technological disruption, before making any decisions.
