AXTA (Axalta Coating Systems) Interest Coverage: 3.84 (As of Mar. 2026) — 33% Above Median


AXTA Axalta Coating Systems Ltd AXTA
80 GF Score
Price $34.66
GF Value $33.28
Valuation Fairly Valued
! 6 Warning Signs
View Full Analysis

What is Axalta Coating Systems Interest Coverage?

Axalta Coating Systems AXTA +3.03% 80 Interest Coverage is 3.84 as of Mar. 2026, which is 33% above its 10-year median of 2.89. GuruFocus rates AXTA with a GF Score™ of 80/100 and a GF Value™ of $33.28 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,237 Chemicals companies, Axalta Coating Systems ranks worse than 70.82% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Axalta Coating Systems's Operating Income for the three months ended in Mar. 2026 was $146 Mil. Axalta Coating Systems's Interest Expense for the three months ended in Mar. 2026 was $-38 Mil. Axalta Coating Systems's interest coverage for the quarter that ended in Mar. 2026 was 3.84. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Axalta Coating Systems's Interest Coverage or its related term are showing as below:

AXTA' s Interest Coverage Range Over the Past 10 Years
Min: 2.04   Med: 2.89   Max: 4.18
Current: 4.15


AXTA's Interest Coverage is ranked worse than
70.82% of 1237 companies
in the Chemicals industry
Industry Median: 10.26 vs AXTA: 4.15

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Axalta Coating Systems  (NYSE:AXTA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Axalta Coating Systems Interest Coverage Related Terms


Axalta Coating Systems Interest Coverage Historical Data

* Premium members only.

The historical data trend for Axalta Coating Systems's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Axalta Coating Systems Interest Coverage Chart

Axalta Coating Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.45 3.02 2.76 3.44 4.18

Axalta Coating Systems Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 4.29 4.53 3.86 3.84

AXTA vs NEU, PRM, BCPC: Interest Coverage Comparison

For the Specialty Chemicals subindustry, Axalta Coating Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Axalta Coating Systems Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Axalta Coating Systems's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Axalta Coating Systems's Interest Coverage falls into.


AXTA
80GF Score
Axalta Coating Systems Ltd AXTA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Axalta Coating Systems Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Axalta Coating Systems's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Axalta Coating Systems's Interest Expense was $-176 Mil. Its Operating Income was $735 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,179 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*735/-176
=4.18

Axalta Coating Systems's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Axalta Coating Systems's Interest Expense was $-38 Mil. Its Operating Income was $146 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,127 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*146/-38
=3.84

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 3.84 mean?
Axalta Coating Systems (AXTA) has a Interest Coverage of 3.84 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Axalta Coating Systems and its competitors. This is 33% above median its historical median of 2.89. Over the past decade, Axalta Coating Systems' Interest Coverage has ranged from 2.04 to 4.18. According to the industry distribution chart, Axalta Coating Systems ranks #876 out of 1237 companies in the Chemicals industry, placing it in the top 70.8%.
Is Axalta Coating Systems' Interest Coverage too high?
Axalta Coating Systems' current Interest Coverage of 3.84 is 33% above median its 10-year median of 2.89. Over the past 10 years, this metric has ranged from a low of 2.04 to a high of 4.18. The Chemicals industry median Interest Coverage is 10.26. Axalta Coating Systems' value of 3.84 is 62.6% below this industry median. Based on the distribution chart, Axalta Coating Systems ranks #876 out of 1237 companies in the Chemicals industry, which is below the industry midpoint. Overall, Axalta Coating Systems has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Axalta Coating Systems' Interest Coverage compare to NEU and PRM?
According to the Chemicals industry distribution chart, Axalta Coating Systems ranks #876 out of 1237 companies for Interest Coverage. This places Axalta Coating Systems in the lower half of its industry. The industry median Interest Coverage is 10.26. Axalta Coating Systems' value of 3.84 is 62.6% below this benchmark. Historically, Axalta Coating Systems' own Interest Coverage has ranged from 2.04 to 4.18 over the past decade. While the company's 10-year median is 2.89 vs. the industry median of 10.26, Axalta Coating Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.26, based on 1,237 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Axalta Coating Systems's current Interest Coverage of 3.84 is 62.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Axalta Coating Systems and its competitors. For the Chemicals industry, the median Interest Coverage is 10.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axalta Coating Systems's current Interest Coverage is 3.84, which is 33% above median its own 10-year median of 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axalta Coating Systems stock overvalued right now?
Based on GuruFocus' analysis, Axalta Coating Systems (AXTA) is currently considered Fairly Valued. The stock's GF Value™ is $33.28, compared to a current price of $34.66 — trading 4.1% above its estimated fair value. The current Interest Coverage is 3.84, which is 33% above median its 10-year median of 2.89 and 62.6% below the Chemicals industry median of 10.26. Axalta Coating Systems' overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Axalta Coating Systems (AXTA), the current Interest Coverage is 3.84 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Axalta Coating Systems (AXTA) Overvalued in 2026?

Based on GuruFocus' analysis, Axalta Coating Systems stock appears to be overvalued. The current stock price of $34.66 is trading 4.1% above its estimated GF Value™ of $33.28. GuruFocus considers Axalta Coating Systems to be Fairly Valued.

Key valuation signals for AXTA:

  • Interest Coverage: 3.84 (33% above median its 10-year median of 2.89)
  • GF Value™: $33.28 vs. price of $34.66 (4.1% above fair value)
  • GF Score™: 80/100 with 6 warning signs
  • Industry Position: 62.6% below the Chemicals median (#876 of 1237)

No single metric tells the full story. See the AXTA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Axalta Coating Systems Business Description

Other Exchanges 0U6C:UK9AX:Germany
Address 1050 Constitution Avenue, Philadelphia, PA, USA, 19112
Axalta Coating Systems Ltd is a manufacturer, marketer, and distributor of high-performance coatings systems. It operates in two segments: Performance Coatings and Mobility Coatings. The Performance Coatings segment provides liquid and powder coatings solutions to a fragmented and local customer base. Its end markets include refinish and industrial, and the Mobility Coatings segment relates to the provision of coating technologies to original equipment manufacturers of light and commercial vehicles. The majority of its revenue is generated from the Mobility Coatings segment. Geographically, the company generates maximum revenue from the Europe, Middle East and Africa (EMEA) region, followed by North America, Asia Pacific, and Latin America.
80GF Score

Get the complete analysis for AXTA

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$34.66
Price
$33.28
GF Value