AXTA (Axalta Coating Systems) Financial Strength: 5 (As of Jun. 2026) — 25% Above Median

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AXTA Axalta Coating Systems Ltd AXTA
80 GF Score
Price $36.28
GF Value $33.29
Valuation Fairly Valued
! 6 Warning Signs
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What is Axalta Coating Systems Financial Strength?

Axalta Coating Systems AXTA +1.31% 80 Financial Strength is 5 as of Jun. 2026, which is 25% above its 10-year median of 4.00. GuruFocus rates AXTA with a GF Score™ of 80/100 and a GF Value™ of $33.29 (Fairly Valued). The stock has 6 warning signs investors should review.

Axalta Coating Systems has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Axalta Coating Systems's Interest Coverage for the quarter that ended in Jun. 2026 was 4.51. Axalta Coating Systems's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.57. As of today, Axalta Coating Systems's Altman Z-Score is 2.42.


Axalta Coating Systems  (NYSE:AXTA) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Axalta Coating Systems has the Financial Strength Rank of 5.


Axalta Coating Systems Financial Strength Related Terms


AXTA vs NEU, EMN, PRM: Financial Strength Comparison

For the Specialty Chemicals subindustry, Axalta Coating Systems's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Chemicals Industry

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

* The bar in red indicates where Axalta Coating Systems's Financial Strength falls into.


AXTA
80GF Score
Axalta Coating Systems Ltd AXTA
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Axalta Coating Systems Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Axalta Coating Systems's Interest Expense for the months ended in Jun. 2026 was $-37 Mil. Its Operating Income for the months ended in Jun. 2026 was $167 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $2,549 Mil.

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

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*167/-37
=4.51

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Axalta Coating Systems's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(519 + 2549) / 5384
=0.57

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Axalta Coating Systems has a Z-score of 2.42, indicating it is in Grey Zones. This implies that Axalta Coating Systems is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.42 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
Axalta Coating Systems (AXTA) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Axalta Coating Systems and its competitors. This is 25% above median its historical median of 4.00. Over the past decade, Axalta Coating Systems' Financial Strength has ranged from 3.00 to 5.00.
Is Axalta Coating Systems' Financial Strength too high?
Axalta Coating Systems' current Financial Strength of 5 is 25% above median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 5.00. 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' Financial Strength compare to NEU and EMN?
Axalta Coating Systems' Financial Strength of 5 can be compared against companies in the Chemicals industry. Historically, Axalta Coating Systems' own Financial Strength has ranged from 3.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Chemicals company?
A good Financial Strength depends on the Chemicals industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Axalta Coating Systems and its competitors. Axalta Coating Systems's current Financial Strength is 5, which is 25% above median its own 10-year median of 4.00. 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 $33.29, compared to a current price of $36.28 — trading 9% above its estimated fair value. The current Financial Strength is 5, which is 25% above median its 10-year median of 4.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Axalta Coating Systems (AXTA), the current Financial Strength is 5 as of Jun. 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 $36.28 is trading 9% above its estimated GF Value™ of $33.29. GuruFocus considers Axalta Coating Systems to be Fairly Valued.

Key valuation signals for AXTA:

  • Financial Strength: 5 (25% above median its 10-year median of 4.00)
  • GF Value™: $33.29 vs. price of $36.28 (9% above fair value)
  • GF Score™: 80/100 with 6 warning signs

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

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

$36.28
Price
$33.29
GF Value