Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Axalta Coating Systems's 3-Year RORE % for the quarter that ended in Mar. 2026 was 12.32%.
The industry rank for Axalta Coating Systems's 3-Year RORE % or its related term are showing as below:
AXTA's 3-Year RORE % is ranked better than 57.32% of 1523
companies
in the Chemicals industry
Industry Median: 6.28
vs AXTA: 12.32
Axalta Coating Systems (NYSE:AXTA) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Axalta Coating Systems 3-Year RORE % Related Terms
Axalta Coating Systems 3-Year RORE % Historical Data
* 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.
For the Specialty Chemicals subindustry, Axalta Coating Systems's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Axalta Coating Systems's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Axalta Coating Systems's 3-Year RORE % falls into.
* 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Axalta Coating Systems (AXTA) has a 3-Year RORE % of 12.32 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Axalta Coating Systems and its competitors. According to the industry distribution chart, Axalta Coating Systems ranks #650 out of 1523 companies in the Chemicals industry, placing it in the top 42.7%.
Is Axalta Coating Systems' 3-Year RORE % too high?
Axalta Coating Systems' current 3-Year RORE % is 12.32. The Chemicals industry median 3-Year RORE % is 6.28. Axalta Coating Systems' value of 12.32 is 96.2% above this industry median. Based on the distribution chart, Axalta Coating Systems ranks #650 out of 1523 companies in the Chemicals industry, which is above the industry midpoint. Overall, Axalta Coating Systems has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Axalta Coating Systems' 3-Year RORE % compare to NEU and EMN?
According to the Chemicals industry distribution chart, Axalta Coating Systems ranks #650 out of 1523 companies for 3-Year RORE %. This puts Axalta Coating Systems in the upper half of its industry. The industry median 3-Year RORE % is 6.28. Axalta Coating Systems' value of 12.32 is 96.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Chemicals company?
The median 3-Year RORE % among Chemicals companies is 6.28, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Axalta Coating Systems's current 3-Year RORE % of 12.32 is 96.2% above 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Axalta Coating Systems and its competitors. For the Chemicals industry, the median 3-Year RORE % is 6.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axalta Coating Systems's current 3-Year RORE % is 12.32. 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 $34.01 — trading 2.2% above its estimated fair value. The current 3-Year RORE % is 12.32 and 96.2% above the Chemicals industry median of 6.28. Axalta Coating Systems' overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Axalta Coating Systems (AXTA), the current 3-Year RORE % is 12.32 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 $34.01 is trading 2.2% above its estimated GF Value™ of $33.29.
GuruFocus considers Axalta Coating Systems to be Fairly Valued.
Key valuation signals for AXTA:
3-Year RORE %: 12.32
GF Value™: $33.29 vs. price of $34.01 (2.2% above fair value)
Industry Position: 96.2% above the Chemicals median (#650 of 1523)
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 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.
82GF Score
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