ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
52.9 USD
+0.36 (+0.69%)
52.9 USD
0 (0%)
ASH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. ASH has only an average score on both its financial health and profitability. ASH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ASH had positive earnings in the past year.
ASH had a positive operating cash flow in the past year.
Of the past 5 years ASH 4 years were profitable.
Of the past 5 years ASH 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -18.30%, ASH is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
The Return On Equity of ASH (-44.33%) is worse than 79.01% of its industry peers.
ASH has a Return On Invested Capital (3.75%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.07%.
The 3 year average ROIC (2.84%) for ASH is below the current ROIC(3.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.3% | ||
| ROE | -44.33% | ||
| ROIC | 3.75% |
ROA(3y)-4.11%
ROA(5y)1.18%
ROE(3y)-10.91%
ROE(5y)0.81%
ROIC(3y)2.84%
ROIC(5y)3.25%
1.3 Margins
The Operating Margin of ASH (10.90%) is better than 61.73% of its industry peers.
In the last couple of years the Operating Margin of ASH has declined.
ASH has a better Gross Margin (32.93%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of ASH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.9% | ||
| PM (TTM) | N/A | ||
| GM | 32.93% |
OM growth 3Y-26.76%
OM growth 5Y-8.78%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.64%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
A Debt/Equity ratio of 0.73 indicates that ASH is somewhat dependend on debt financing.
The Debt to Equity ratio of ASH (0.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.46
WACC8.11%
2.3 Liquidity
A Current Ratio of 2.85 indicates that ASH has no problem at all paying its short term obligations.
ASH has a better Current ratio (2.85) than 81.48% of its industry peers.
A Quick Ratio of 1.51 indicates that ASH should not have too much problems paying its short term obligations.
The Quick ratio of ASH (1.51) is better than 60.49% 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%.
The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
Looking at the last year, ASH shows a very strong growth in Revenue. The Revenue has grown by 76.98%.
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)76.98%
Revenue growth 3Y-8.63%
Revenue growth 5Y-1.98%
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.
ASH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
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.
When comparing the Revenue 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
Based on the Price/Earnings ratio of 15.60, the valuation of ASH can be described as correct.
Based on the Price/Earnings ratio, ASH is valued a bit cheaper than 62.96% of the companies in the same industry.
ASH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.18 indicates a correct valuation of ASH.
Based on the Price/Forward Earnings ratio, ASH is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, ASH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASH is valued a bit cheaper than 67.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.19 |
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)0.56
PEG (5Y)4
EPS Next 2Y22.9%
EPS Next 3Y22.37%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 4.16, ASH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, ASH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of ASH is nicely growing with an annual growth rate of 8.49%!
ASH has paid a dividend for at least 10 years, which is 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)8.49%
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 2Y22.9%
EPS Next 3Y22.37%
52.9
+0.36 (+0.69%)
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 Change3%
Market Cap2.42B
Revenue(TTM)1.82B
Net Income(TTM)-844.00M
Analysts77.65
Price Target63.27 (19.6%)
Short Float %4.72%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.64
Dividend Growth(5Y)8.49%
DP-9%
Div Incr Years15
Div Non Decr Years15
Ex-Date
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)-2.36%
PT rev (3m)-2.51%
EPS NQ rev (1m)-27.31%
EPS NQ rev (3m)-38.07%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)-2.04%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.18 | ||
| P/S | 1.32 | ||
| P/FCF | N/A | ||
| P/OCF | 25.72 | ||
| P/B | 1.27 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)3.39
EY6.41%
EPS(NY)4.34
Fwd EY8.21%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)2.06
OCFY3.89%
SpS39.93
BVpS41.65
TBVpS13.91
PEG (NY)0.56
PEG (5Y)4
Graham Number56.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.3% | ||
| ROE | -44.33% | ||
| ROCE | 4.75% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 5.81% | ||
| OM | 10.9% | ||
| PM (TTM) | N/A | ||
| GM | 32.93% | ||
| FCFM | N/A |
ROA(3y)-4.11%
ROA(5y)1.18%
ROE(3y)-10.91%
ROE(5y)0.81%
ROIC(3y)2.84%
ROIC(5y)3.25%
ROICexc(3y)3.03%
ROICexc(5y)3.5%
ROICexgc(3y)5.23%
ROICexgc(5y)6.26%
ROCE(3y)3.59%
ROCE(5y)4.12%
ROICexgc growth 3Y-32.85%
ROICexgc growth 5Y-9.76%
ROICexc growth 3Y-27.68%
ROICexc growth 5Y-4.2%
OM growth 3Y-26.76%
OM growth 5Y-8.78%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.64%
GM growth 5Y0.26%
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 | 250 | ||
| Cash Conversion | 21.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | N/A |
F-Score6
WACC8.11%
ROIC/WACC0.46
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 Y28.1%
EPS Next 2Y22.9%
EPS Next 3Y22.37%
EPS Next 5YN/A
Revenue 1Y (TTM)76.98%
Revenue growth 3Y-8.63%
Revenue growth 5Y-1.98%
Sales Q2Q%-8.43%
Revenue Next Year2.06%
Revenue Next 2Y2.89%
Revenue Next 3Y3.1%
Revenue Next 5YN/A
EBIT growth 1Y106.76%
EBIT growth 3Y-33.08%
EBIT growth 5Y-10.59%
EBIT Next Year109.86%
EBIT Next 3YN/A
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 5 / 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 4 / 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 15.6 and the Price/Book (PB) ratio is 1.27.
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.