Trade-Ideas LLC identified

Axalta Coating Systems

(

AXTA

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Axalta Coating Systems as such a stock due to the following factors:

  • AXTA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.9 million.
  • AXTA traded 281,819 shares today in the pre-market hours as of 8:59 AM, representing 18.8% of its average daily volume.

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More details on AXTA:

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high performance coatings products primarily for the transportation industry. It operates through two segments, Performance Coatings and Transportation Coatings. AXTA has a PE ratio of 3. Currently there are 6 analysts that rate Axalta Coating Systems a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Axalta Coating Systems has been 2.2 million shares per day over the past 30 days. Axalta Coating Systems has a market cap of $6.8 billion and is part of the basic materials sector and chemicals industry. Shares are up 7.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Axalta Coating Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.

Highlights from the ratings report include:

  • AXALTA COATING SYSTEMS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AXALTA COATING SYSTEMS LTD turned its bottom line around by earning $0.39 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings ($1.20 versus $0.39).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 293.2% when compared to the same quarter one year prior, rising from -$25.10 million to $48.50 million.
  • 37.57% is the gross profit margin for AXALTA COATING SYSTEMS LTD which we consider to be strong. Regardless of AXTA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.52% trails the industry average.
  • The debt-to-equity ratio is very high at 2.83 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, AXTA has managed to keep a strong quick ratio of 1.55, which demonstrates the ability to cover short-term cash needs.
  • In its most recent trading session, AXTA has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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