Is AXTA a high-quality business?

AlphaMadera's AlphaQuality grade scores Axalta Coating Systems Ltd. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how AXTA compares to a Buffett-style quality bar.

What is Axalta Coating Systems Ltd.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to AXTA based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes AXTA a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

AXTA - Axalta Coating Systems Ltd.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $34.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B- 66.1 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

C+ 58.7

5yr Avg ROIC 7.0% 45/100
Operating Margin Trend +1.36 pp/yr 90/100

Capital Efficiency

Weight: 15%

B+ 76.8

5yr Avg ROE 12.7% 72/100
5yr Share-Count CAGR -1.6% 85/100

Growth Quality

Weight: 25%

B- 66.6

5yr Revenue CAGR 3.8% 51/100
5yr EPS CAGR 11.2% 79/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

B+ 76.4

5yr FCF Margin 7.7% 61/100
5yr FCF/NI Conversion 1.27x 95/100

Balance Sheet

Weight: 10%

C 55.8

Net Debt / EBITDA 2.58x 58/100
Interest Coverage (EBIT/Int) 3.96x 55/100
Altman Z-Score 2.36 52/100

Stability

Weight: 5%

C- 48.9

EPS Volatility (σ/μ) 0.63 20/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

5 of 5 gurus held; 1 new buy; 2 added; 2 trimmed.

Holders: 5 +1
Avg Δ position: +1.0%
New buys: 1
Full exits: 0

Laffont new
Cooperman increased +70%
Wood decreased -59%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.