ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
62.3 USD
-0.16 (-0.26%)
62.3 USD
0 (0%)
Taking everything into account, ASH scores 4 out of 10 in our fundamental rating. ASH was compared to 83 industry peers in the Chemicals industry. ASH has an average financial health and profitability rating. 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.
- 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
- With a Return On Assets value of -18.30%, ASH is not doing good in the industry: 85.54% of the companies in the same industry are doing better.
- 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.
- ASH had an Average Return On Invested Capital over the past 3 years of 3.45%. This 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
- With a decent Operating Margin value of 10.96%, ASH is doing good in the industry, outperforming 61.45% of the companies in the same industry.
- In the last couple of years the Operating Margin of ASH has grown nicely.
- 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.
- ASH has less shares outstanding than it did 1 year ago.
- 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.
- With a Altman-Z score value of 2.07, ASH perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
- A Debt/Equity ratio of 0.73 indicates that ASH is somewhat dependend on debt financing.
- ASH's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. ASH outperforms 46.99% of its industry peers.
| 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.
- ASH has a better Current ratio (2.85) than 80.72% of its industry peers.
- 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.
- 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
- The earnings per share for ASH have decreased strongly by -24.16% in the last year.
- 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.
- Looking at the last year, ASH shows a very strong growth in Revenue. The Revenue has grown by 76.88%.
- The Revenue has been decreasing by -1.98% on average over the past years.
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 17.88% on average over the next years. This is quite good.
- 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.
- 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
- The Price/Earnings ratio is 18.38, which indicates a rather expensive current valuation of ASH.
- ASH's Price/Earnings is on the same level as the industry average.
- ASH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- ASH is valuated correctly with a Price/Forward Earnings ratio of 15.66.
- Based on the Price/Forward Earnings ratio, ASH is valued a bit cheaper than 63.86% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. ASH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
- ASH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASH is cheaper than 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.21 |
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 17.88% in the coming years.
PEG (NY)1.06
PEG (5Y)4.71
EPS Next 2Y18.07%
EPS Next 3Y17.88%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.63%, ASH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.23, ASH pays a bit more dividend than its industry peers.
- 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.42%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
- The earnings of ASH are negative and hence is the payout ratio. ASH will probably not be able to sustain this dividend level.
- ASH's earnings are growing more than its dividend. This makes the dividend growth 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 18.38 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.