On December 31, 2024, Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) executed a strategic reduction in its holdings of Axalta Coating Systems Ltd (AXTA, Financial). The firm decreased its position by 239,193 shares, which resulted in a portfolio impact of -0.03%. This transaction reflects the firm's ongoing strategy to adjust its portfolio in response to market conditions and stock valuations. The shares were traded at a price of $34.22, and post-transaction, the firm holds 14,321,654 shares of Axalta, representing 1.6% of its portfolio and 6.57% of Axalta's total shares.

About Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio)

Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) is a renowned Dallas-based investment firm, recognized for managing the Vanguard Windsor II and Selected Value Funds. The firm adheres to a disciplined investment philosophy that emphasizes maintaining below-market price-to-earnings and price-to-book ratios, coupled with above-market dividend yields. This approach has historically enabled the firm to achieve superior returns, as evidenced by the Selected Value Funds' average annual return of 9.33% over a decade ending March 31, 2010, despite negative market returns during the same period.

Axalta Coating Systems Ltd Overview

Axalta Coating Systems Ltd, a USA-based company, is a leading manufacturer and distributor of high-performance coatings. The company operates through two primary segments: Mobility Coatings and Performance Coatings. With a market capitalization of $8.07 billion, Axalta is considered modestly overvalued, with a GF Value of $33.09. The company's current stock price stands at $37.01, reflecting a price-to-earnings ratio of 20.79. Axalta's [GF-Score](https://www.gurufocus.com/term/gf-score/AXTA) of 83/100 suggests good outperformance potential, making it an attractive consideration for value investors.

Financial Performance and Metrics

Axalta has demonstrated robust financial performance, with a 26.90% earnings growth over the past three years. The company maintains a [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/AXTA) of 8/10, indicating strong profitability. Despite a modestly overvalued status, Axalta's financial metrics, including a [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/AXTA) rank of 5/10 and an [Operating Margin](https://www.gurufocus.com/term/operating-margin/AXTA) growth of 5.30%, underscore its solid financial foundation. The company's [interest coverage](https://www.gurufocus.com/term/interest-coverage/AXTA) ratio of 3.44 further highlights its ability to meet financial obligations.

Portfolio Impact and Strategic Alignment

The reduction in Axalta shares aligns with Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio)'s strategy of maintaining a balanced portfolio, with a focus on financial and technology sectors. The firm's top holdings include companies such as Air Products & Chemicals Inc (APD, Financial), Carnival Corp (CCL, Financial), and Enbridge Inc (ENB, Financial). This strategic adjustment reflects the firm's commitment to optimizing its portfolio in response to market dynamics and stock valuations.

Market Context and Other Investors

Axalta has attracted interest from other notable investors, including John Rogers (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio), indicating a shared interest among prominent value investors. The stock has experienced a year-to-date price change of 10.28%, reflecting its market dynamics and investor sentiment. This interest from multiple gurus underscores Axalta's potential as a valuable investment opportunity.

Conclusion and Implications for Value Investors

The transaction by Barrow, Hanley, Mewhinney & Strauss (Trades, Portfolio) highlights a strategic adjustment in response to Axalta's valuation and market conditions. Value investors may find the firm's approach and Axalta's financial metrics insightful when evaluating potential investment opportunities. The firm's disciplined investment philosophy and Axalta's strong financial performance make this transaction noteworthy for those seeking to understand the dynamics of value investing in the current market environment.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.