Axalta Coating Systems (AXTA) is one of the world’s leading suppliers of paints and varnishes. The company creates high-quality coatings that are used commonly for automobiles, commercial vehicles, and industrial applications. Over 150 years of continuous operations have seen the company open up 48 production centres worldwide. The company has 13 thousand employees serving over 100 thousand customers in 130 countries. More than 30 research laboratories at Axalta are dedicated to improving the company’s technology.
Trading in Axalta Coating Systems Ltd. (AXTA) began the day at $26.71 and reached an intraday high of $27.44. A low of $26.565 was also recorded during the trading session on Wednesday. Wednesday’s trading volume of 4.06 million was less than -74.92% of the overall daily average trading volume of 4.06 million.
The EBITDA margin of 21% is higher than that of the closest competitor: PPG Industries (17%), AkzoNobel (13%), etc. Following the lockdown, Axalta’s revenues recovered quite quickly. Recent reports show that the company has been able to reduce operating costs by $50 million, providing additional proof of its business model’s flexibility.
Axalta Coating Systems (AXTA) plans to retain its current growth rate by investing in research and development while launching 250 new products each year. China accounts for more than 40% of the global paints and varnishes market, so further recovery of the Chinese economy, particularly the automotive market, where there is a deferred demand should have a positive’s financial result. Also, in the U.S. auto market, low-interest rates have spurred recovery.
This company faces a pandemic threat. However, its strengthened balance sheet ensures that any adverse effects will be minimal. More specifically, the amount of free cash flow stayed about the same at $514 million.
Paraphrase the following sentence: Investors prioritize the company’s profitability ratios over how the company performs at the profitability side. Potential investors use a return on equity metric to assess how well their capital is being used to generate profits. According to their reported performance, Axalta Coating Systems (AXTA) generated a 7.20% return on equity. It is among the most used investment ratios because ROI measurement is easy and flexible. Executives can use it to evaluate their investment performance and investors to evaluate the quality of their stock investment. As a result, the ROI entry for AXTA’s scenario is 7.90%. The return on assets ratio or ROA metric is another principle metric of profitability. It analyzes the effectiveness of a business’s handling of its assets over an extended time to generate profits. Over the last twelve months, Axalta Coating Systems Ltd.’s ROA came to 1.40%.