Is Axalta Coating Systems Ltd. (AXTA) Halal?

NYSE Basic Materials United States $5.7B
✗ NOT HALAL
Confidence: 90/100
Axalta Coating Systems Ltd. (AXTA) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 51.1% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Axalta Coating Systems Ltd. operates in the Basic Materials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 51.1%
/ 30%
10.4%
/ 30%
19.5%
/ 30%
0.25%
/ 5%
✗ NOT HALAL
DJIM 51.1%
/ 33%
10.4%
/ 33%
19.5%
/ 33%
0.25%
/ 5%
✗ NOT HALAL
MSCI 42.5%
/ 33%
8.6%
/ 33%
16.2%
/ 33%
0.25%
/ 5%
✗ NOT HALAL
S&P 51.1%
/ 33%
10.4%
/ 33%
19.5%
/ 33%
0.25%
/ 5%
✗ NOT HALAL
FTSE 42.5%
/ 33%
8.6%
/ 33%
16.2%
/ 50%
0.25%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
15.4
Forward: 9.4
EPS
$1.74
P/B Ratio
2.4
EV/EBITDA
8.4
EV: $8.4B
Revenue
$5.1B
Growth: -3.7%
Beta
1.3
High volatility
Current Ratio
2.1

Profitability

Gross Margin 34.4%
Operating Margin 15.2%
Net Margin 7.4%
Return on Equity (ROE) 17.4%
Return on Assets (ROA) 6.6%

Cash Flow & Balance Sheet

Operating Cash Flow$649M
Free Cash Flow$453M
Total Debt$3.2B
Debt-to-Equity138.4
Current Ratio2.1
Total Assets$7.6B

Price & Trading

Last Close$27.36
50-Day MA$31.70
200-Day MA$30.35
Avg Volume3.2M
Beta1.3
52-Week Range
$24.94
$35.72

About Axalta Coating Systems Ltd. (AXTA)

CEO
Mr. Chrishan Anthon Sebastian Villavarayan
Employees
12,300
Sector
Basic Materials
Industry
Specialty Chemicals
Country
United States
Exchange
NYSE
Market Cap
$5.7B
Currency
USD

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturers (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings for building materials, cabinet, wood and luxury vinyl flooring, and furniture applications under the Imron Industrial, Tufcote Industrial, Corlar Industrial, Strenex Industrial, PercoTop, Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, rail, motorcycles, marine and aviation, trailers, recreational vehicles, and personal sport vehicles under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company also offers products under the Audurra, Abcite, Alesta, AquaEC, Axalta Irus Mix, Axalta Irus Scan, Axalta NextJet, Axalta Nimbus, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Hydropon, Imron ExcelPro, Imron Elite, Imron, Lutophen, Nap-Gard, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, Rival, U-POL, and Vermeera brands. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Philadelphia, Pennsylvania.

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Frequently Asked Questions

Is Axalta Coating Systems Ltd. (AXTA) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Axalta Coating Systems Ltd. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Axalta Coating Systems Ltd.'s debt ratio?

Axalta Coating Systems Ltd.'s debt ratio is 51.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 42.5%.

What are Axalta Coating Systems Ltd.'s key financial metrics?

Axalta Coating Systems Ltd. has a market capitalization of $5.7B, trailing P/E ratio of 15.4, and revenue of $5.1B. The company maintains a gross margin of 34.4% and a net margin of 7.4%. Return on equity stands at 17.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.