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Axalta AXTA

Axalta scores weak on business quality (4.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$32.63Oct 10, 2026
Business qualityWeak
Next earningsOct 29, 2026, before the open
Insiders, 90 daysQuiet

Why it matters

  1. What Axalta does

    Axalta Coating Systems makes liquid and powder coatings for automotive and industrial customers, who pay to protect and finish metal and plastic surfaces. Revenue sits at $5.1B after a 3.0% drop in sales.

  2. What it does best

    Axalta dominates refinish automotive coatings via deep body-shop integration, locking in technicians with proprietary color matching tools. Gross margin hits 34.0%, landing it in the top quartile of its sector.

  3. The main risk

    Net debt sits at $2.5B with interest coverage at 4.3x, leaving earnings vulnerable to any drop in operating income or further interest rate spikes.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 13.6% with a 72nd percentile free cash flow margin, showing steady cash conversion relative to peers.

MoatFair

Switching costs lock body shops into its ecosystem, supported by a gross margin in the sector's top quartile at 34.0%.

GrowthSlow

Revenue fell 3.0% to $5.1B, showing a fading top-line trend compared to prior annual growth.

Financial healthFair

Total debt of $3.2B outweighs cash of $657M, though free cash flow reached $495M. Balance-sheet leverage remains a heavy anchor.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on AXTA

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is AXTA a good business?

Axalta scores weak on the Cluenex quality check (4.1 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.

Are insiders buying AXTA?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does AXTA report earnings?

Oct 29, 2026, before the open.

For members

See AXTA today

  • Today's verdict on AXTA, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Axalta (AXTA)”, https://cluenex.com/stocks/axta/, data as of Oct 10, 2026.