ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
62.34 USD
+2.43 (+4.06%)
62.34 USD
0 (0%)
Overall ASH gets a fundamental rating of 4 out of 10. We evaluated ASH against 82 industry peers in the Chemicals industry. ASH has an average financial health and profitability rating. ASH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ASH was profitable.
ASH had a positive operating cash flow in the past year.
Of the past 5 years ASH 4 years were profitable.
ASH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ASH has a Return On Assets of -18.30%. This is amonst the worse of the industry: ASH underperforms 84.34% of its industry peers.
Looking at the Return On Equity, with a value of -44.33%, ASH is doing worse than 78.31% of the companies in the same industry.
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 6.10%.
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
ASH has a better Operating Margin (10.96%) than 61.45% of its industry peers.
ASH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.00%, ASH is in the better half of the industry, outperforming 65.06% of the companies in the same industry.
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
ASH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ASH has less shares outstanding
Compared to 5 years ago, ASH has less shares outstanding
ASH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.07 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASH has a Altman-Z score (2.07) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.73 indicates that ASH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, ASH perfoms like the industry average, outperforming 48.19% 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
WACC11.68%
2.3 Liquidity
ASH has a Current Ratio of 2.85. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.85, ASH belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
ASH has a Quick Ratio of 1.51. This is a normal value and indicates that ASH is financially healthy and should not expect problems in meeting its short term obligations.
ASH has a better Quick ratio (1.51) than 61.45% of its industry peers.
| 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%.
ASH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
The Revenue has grown by 76.88% in the past year. This is a very strong growth!
Measured over the past years, ASH shows a decrease in Revenue. The Revenue has been decreasing by -1.98% on average per year.
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
The Earnings Per Share is expected to grow by 17.84% on average over the next years. This is quite good.
Based on estimates for the next years, ASH will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y17.28%
EPS Next 2Y18.46%
EPS Next 3Y17.84%
EPS Next 5YN/A
Revenue Next Year2.22%
Revenue Next 2Y2.94%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 18.39 indicates a rather expensive valuation of ASH.
ASH's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ASH to the average of the S&P500 Index (27.19), we can say ASH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.68, the valuation of ASH can be described as correct.
Based on the Price/Forward Earnings ratio, ASH is valued a bit cheaper than 61.45% of the companies in the same industry.
ASH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASH is valued a bit cheaper than 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ASH's earnings are expected to grow with 17.84% in the coming years.
PEG (NY)1.06
PEG (5Y)4.72
EPS Next 2Y18.46%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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 2Y18.46%
EPS Next 3Y17.84%
62.34
+2.43 (+4.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.47%
Inst Owner Change0.28%
Ins Owners0.58%
Ins Owner Change3%
Market Cap2.85B
Revenue(TTM)1.82B
Net Income(TTM)-844.00M
Analysts78.82
Price Target64.39 (3.29%)
Short Float %8.44%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend1.63
Dividend Growth(5Y)8.42%
DP-9%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.1%
Min EPS beat(2)-16.19%
Max EPS beat(2)-14%
EPS beat(4)1
Avg EPS beat(4)3.45%
Min EPS beat(4)-16.19%
Max EPS beat(4)55.09%
EPS beat(8)4
Avg EPS beat(8)19%
EPS beat(12)4
Avg EPS beat(12)8.65%
EPS beat(16)7
Avg EPS beat(16)7.96%
Revenue beat(2)0
Avg Revenue beat(2)-2.64%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-1.52%
Revenue beat(4)0
Avg Revenue beat(4)-4.36%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.52%
Revenue beat(8)0
Avg Revenue beat(8)-3.5%
Revenue beat(12)0
Avg Revenue beat(12)-3.26%
Revenue beat(16)2
Avg Revenue beat(16)-2.36%
PT rev (1m)3.27%
PT rev (3m)-0.63%
EPS NQ rev (1m)-2.46%
EPS NQ rev (3m)-40.8%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)-12.38%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 15.68 | ||
| P/S | 1.56 | ||
| P/FCF | N/A | ||
| P/OCF | 30.32 | ||
| P/B | 1.5 | ||
| P/tB | 4.48 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)3.39
EY5.44%
EPS(NY)3.98
Fwd EY6.38%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)2.06
OCFY3.3%
SpS39.9
BVpS41.64
TBVpS13.91
PEG (NY)1.06
PEG (5Y)4.72
Graham Number56.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.3% | ||
| ROE | -44.33% | ||
| ROCE | 4.78% | ||
| ROIC | 3.77% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 5.84% | ||
| OM | 10.96% | ||
| PM (TTM) | N/A | ||
| GM | 33% | ||
| FCFM | N/A |
ROA(3y)-4.11%
ROA(5y)1.18%
ROE(3y)-10.91%
ROE(5y)0.81%
ROIC(3y)3.45%
ROIC(5y)3.62%
ROICexc(3y)3.67%
ROICexc(5y)3.89%
ROICexgc(3y)6.18%
ROICexgc(5y)6.83%
ROCE(3y)4.36%
ROCE(5y)4.58%
ROICexgc growth 3Y-14.59%
ROICexgc growth 5Y4.26%
ROICexc growth 3Y-8.07%
ROICexc growth 5Y10.64%
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%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 41.35% | ||
| Cap/Sales | 5.37% | ||
| Interest Coverage | 3.7 | ||
| Cash Conversion | 21.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.07 |
F-Score6
WACC11.68%
ROIC/WACC0.32
Cap/Depr(3y)53.76%
Cap/Depr(5y)50.24%
Cap/Sales(3y)6.54%
Cap/Sales(5y)5.86%
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 Y17.28%
EPS Next 2Y18.46%
EPS Next 3Y17.84%
EPS Next 5YN/A
Revenue 1Y (TTM)76.88%
Revenue growth 3Y-8.63%
Revenue growth 5Y-1.98%
Sales Q2Q%-8.43%
Revenue Next Year2.22%
Revenue Next 2Y2.94%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y107.8%
EBIT growth 3Y-14.93%
EBIT growth 5Y3.26%
EBIT Next Year97.52%
EBIT Next 3Y32.52%
EBIT Next 5YN/A
FCF growth 1Y-101.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-77.13%
OCF growth 3YN/A
OCF growth 5Y-14.27%
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 18.39 and the Price/Book (PB) ratio is 1.5.
Can you provide the financial health for ASH stock?
The financial health rating of ASHLAND INC (ASH) is 5 / 10.