ASHLAND INC (ASH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ASH • US0441861046
60.94 USD
-0.79 (-1.28%)
Last: Jan 30, 2026, 10:20 AM
We assign a fundamental rating of 4 out of 10 to ASH. ASH was compared to 83 industry peers in the Chemicals industry. ASH has an average financial health and profitability rating. ASH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ASH was profitable.
- In the past year ASH had a positive cash flow from operations.
- ASH had positive earnings in 4 of the past 5 years.
- ASH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -18.30%, ASH is doing worse than 85.54% of the companies in the same industry.
- ASH has a Return On Equity of -44.33%. This is in the lower half of the industry: ASH underperforms 79.52% of its industry peers.
- ASH has a Return On Invested Capital of 3.77%. This is comparable to the rest of the industry: ASH outperforms 55.42% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.11%.
- The last Return On Invested Capital (3.77%) for ASH is above the 3 year average (3.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.3% | ||
| ROE | -44.33% | ||
| ROIC | 3.77% |
ROA(3y)-4.11%
ROA(5y)1.18%
ROE(3y)-10.91%
ROE(5y)0.81%
ROIC(3y)3.45%
ROIC(5y)3.62%
1.3 Margins
- The Operating Margin of ASH (10.96%) is better than 61.45% of its industry peers.
- ASH's Operating Margin has improved in the last couple of years.
- ASH has a Gross Margin of 33.00%. This is in the better half of the industry: ASH outperforms 65.06% of its industry peers.
- In the last couple of years the Gross Margin of ASH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.96% | ||
| PM (TTM) | N/A | ||
| GM | 33% |
OM growth 3Y-6.9%
OM growth 5Y5.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.33%
GM growth 5Y1.71%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ASH is destroying value.
- Compared to 1 year ago, ASH has less shares outstanding
- ASH has less shares outstanding than it did 5 years ago.
- ASH has a worse debt/assets ratio than last year.
2.2 Solvency
- ASH has an Altman-Z score of 2.07. This is not the best score and indicates that ASH is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of ASH (2.07) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.73 indicates that ASH is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.73, ASH is in line with its industry, outperforming 46.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.32
WACC11.7%
2.3 Liquidity
- A Current Ratio of 2.85 indicates that ASH has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.85, ASH belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
- A Quick Ratio of 1.51 indicates that ASH should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.51, ASH is doing good in the industry, outperforming 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.51 |
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%.
- The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
- The Revenue has grown by 76.88% in the past year. This is a very strong growth!
- ASH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.98% yearly.
EPS 1Y (TTM)-24.16%
EPS 3Y-16.05%
EPS 5Y3.9%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)76.88%
Revenue growth 3Y-8.63%
Revenue growth 5Y-1.98%
Sales Q2Q%-8.43%
3.2 Future
- Based on estimates for the next years, ASH will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.88% on average per year.
- ASH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
EPS Next Y17.38%
EPS Next 2Y18.07%
EPS Next 3Y17.88%
EPS Next 5YN/A
Revenue Next Year2.22%
Revenue Next 2Y2.89%
Revenue Next 3Y3%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- ASH is valuated rather expensively with a Price/Earnings ratio of 17.98.
- 61.45% of the companies in the same industry are more expensive than ASH, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ASH to the average of the S&P500 Index (28.39), we can say ASH is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.32, which indicates a correct valuation of ASH.
- 63.86% of the companies in the same industry are more expensive than ASH, based on the Price/Forward Earnings ratio.
- ASH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.98 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
- ASH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASH is cheaper than 67.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
- ASH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ASH's earnings are expected to grow with 17.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)4.61
EPS Next 2Y18.07%
EPS Next 3Y17.88%
5. Dividend
5.1 Amount
- ASH has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
- ASH's Dividend Yield is a higher than the industry average which is at 2.23.
- Compared to an average S&P500 Dividend Yield of 1.82, ASH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
- The dividend of ASH is nicely growing with an annual growth rate of 8.42%!
- ASH has been paying a dividend for at least 10 years, so it has a reliable track record.
- ASH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.42%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
- ASH has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of ASH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-9%
EPS Next 2Y18.07%
EPS Next 3Y17.88%
ASHLAND INC / ASH FAQ
Can you provide the ChartMill fundamental rating for ASHLAND INC?
ChartMill assigns a fundamental rating of 4 / 10 to ASH.
What is the valuation status of ASHLAND INC (ASH) stock?
ChartMill assigns a valuation rating of 4 / 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 4 / 10.
Can you provide the PE and PB ratios for ASH stock?
The Price/Earnings (PE) ratio for ASHLAND INC (ASH) is 17.98 and the Price/Book (PB) ratio is 1.46.
Can you provide the financial health for ASH stock?
The financial health rating of ASHLAND INC (ASH) is 5 / 10.