ASHLAND INC (ASH) Stock Fundamental Analysis
USA - NYSE:ASH - US0441861046 - Common Stock
48.18 USD
-0.83 (-1.69%)
48.18 USD
0 (0%)
Taking everything into account, ASH scores 3 out of 10 in our fundamental rating. ASH was compared to 82 industry peers in the Chemicals industry. ASH has a bad profitability rating. Also its financial health evaluation is rather negative. ASH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ASH had positive earnings in the past year.
ASH had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ASH reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: ASH reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of ASH (-19.70%) is worse than 85.37% of its industry peers.
With a Return On Equity value of -48.19%, ASH is not doing good in the industry: 81.71% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 1.35%, ASH is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.7% | ||
| ROE | -48.19% | ||
| ROIC | 1.35% |
ROA(3y)-2.67%
ROA(5y)-2.41%
ROE(3y)0.23%
ROE(5y)-1.61%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ASH's Operating Margin of 8.12% is in line compared to the rest of the industry. ASH outperforms 48.78% of its industry peers.
Looking at the Gross Margin, with a value of 31.79%, ASH is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
ASH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.12% | ||
| PM (TTM) | N/A | ||
| GM | 31.79% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.09%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
ASH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ASH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.61, we must say that ASH is in the distress zone and has some risk of bankruptcy.
ASH has a Altman-Z score of 1.61. This is comparable to the rest of the industry: ASH outperforms 41.46% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that ASH is somewhat dependend on debt financing.
ASH has a Debt to Equity ratio (0.73) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.61 |
ROIC/WACC0.18
WACC7.34%
2.3 Liquidity
ASH has a Current Ratio of 2.68. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
ASH has a better Current ratio (2.68) than 73.17% of its industry peers.
ASH has a Quick Ratio of 1.33. This is a normal value and indicates that ASH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ASH (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
ASH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.16%.
Measured over the past 5 years, ASH shows a small growth in Earnings Per Share. The EPS has been growing by 3.90% on average per year.
EPS 1Y (TTM)-24.16%
EPS 3Y-16.05%
EPS 5Y3.9%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.43%
3.2 Future
ASH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.37% yearly.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y28.1%
EPS Next 2Y22.9%
EPS Next 3Y22.37%
EPS Next 5YN/A
Revenue Next Year2.06%
Revenue Next 2Y2.89%
Revenue Next 3Y3.1%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.21 indicates a correct valuation of ASH.
Compared to the rest of the industry, the Price/Earnings ratio of ASH indicates a somewhat cheap valuation: ASH is cheaper than 64.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ASH to the average of the S&P500 Index (25.07), we can say ASH is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.09, the valuation of ASH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ASH is valued a bit cheaper than 70.73% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ASH to the average of the S&P500 Index (34.08), we can say ASH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASH is valued expensively inside the industry as 82.93% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 88.56 |
4.3 Compensation for Growth
ASH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ASH's earnings are expected to grow with 22.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)3.65
EPS Next 2Y22.9%
EPS Next 3Y22.37%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.00, ASH pays a bit more dividend than its industry peers.
ASH's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of ASH decreases each year by -72.02%.
ASH has been paying a dividend for at least 10 years, so it has a reliable track record.
ASH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-72.02%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
ASH pays out 0.21% of its income as dividend. This is a sustainable payout ratio.
DP0.21%
EPS Next 2Y22.9%
EPS Next 3Y22.37%
48.18
-0.83 (-1.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change-5.32%
Ins Owners0.53%
Ins Owner Change0.38%
Market Cap2.20B
Revenue(TTM)N/A
Net Income(TTM)-910.23M
Analysts77.65
Price Target63.58 (31.96%)
Short Float %4.72%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend0
Dividend Growth(5Y)-72.02%
DP0.21%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.65%
Min EPS beat(2)-16.19%
Max EPS beat(2)-11.11%
EPS beat(4)1
Avg EPS beat(4)6.27%
Min EPS beat(4)-16.19%
Max EPS beat(4)55.09%
EPS beat(8)4
Avg EPS beat(8)16.33%
EPS beat(12)5
Avg EPS beat(12)10.01%
EPS beat(16)7
Avg EPS beat(16)8.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.71%
Min Revenue beat(2)-5.65%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-4.33%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.68%
Revenue beat(12)0
Avg Revenue beat(12)-3.16%
Revenue beat(16)2
Avg Revenue beat(16)-5.33%
PT rev (1m)-1.89%
PT rev (3m)-3.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.34%
EPS NY rev (1m)-1.22%
EPS NY rev (3m)-6.87%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 11.09 | ||
| P/S | 2.5 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.17 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 88.56 |
EPS(TTM)3.39
EY7.04%
EPS(NY)4.34
Fwd EY9.01%
FCF(TTM)-5.29
FCFYN/A
OCF(TTM)-6.05
OCFYN/A
SpS19.3
BVpS41.33
TBVpS13.26
PEG (NY)0.51
PEG (5Y)3.65
Graham Number56.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.7% | ||
| ROE | -48.19% | ||
| ROCE | 1.7% | ||
| ROIC | 1.35% | ||
| ROICexc | 1.42% | ||
| ROICexgc | 2.09% | ||
| OM | 8.12% | ||
| PM (TTM) | N/A | ||
| GM | 31.79% | ||
| FCFM | N/A |
ROA(3y)-2.67%
ROA(5y)-2.41%
ROE(3y)0.23%
ROE(5y)-1.61%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.09%
GM growth 5Y-1.57%
F-Score2
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 35.83 | ||
| Cap/Depr | -105% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.61 |
F-Score2
WACC7.34%
ROIC/WACC0.18
Cap/Depr(3y)49.75%
Cap/Depr(5y)49.78%
Cap/Sales(3y)4.84%
Cap/Sales(5y)5.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.16%
EPS 3Y-16.05%
EPS 5Y3.9%
EPS Q2Q%-14.29%
EPS Next Y28.1%
EPS Next 2Y22.9%
EPS Next 3Y22.37%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.43%
Revenue Next Year2.06%
Revenue Next 2Y2.89%
Revenue Next 3Y3.1%
Revenue Next 5YN/A
EBIT growth 1Y-32.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year57.59%
EBIT Next 3Y23.24%
EBIT Next 5YN/A
FCF growth 1Y-603.6%
FCF growth 3Y-91.56%
FCF growth 5Y-68.89%
OCF growth 1Y-241.75%
OCF growth 3Y-89.84%
OCF growth 5Y-69.99%
ASHLAND INC / ASH FAQ
Can you provide the ChartMill fundamental rating for ASHLAND INC?
ChartMill assigns a fundamental rating of 3 / 10 to ASH.
Can you provide the valuation status for ASHLAND INC?
ChartMill assigns a valuation rating of 5 / 10 to ASHLAND INC (ASH). This can be considered as Fairly Valued.
Can you provide the profitability details for ASHLAND INC?
ASHLAND INC (ASH) has a profitability rating of 2 / 10.
What is the valuation of ASHLAND INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ASHLAND INC (ASH) is 14.21 and the Price/Book (PB) ratio is 1.17.
What is the earnings growth outlook for ASHLAND INC?
The Earnings per Share (EPS) of ASHLAND INC (ASH) is expected to grow by 28.1% in the next year.