ASHLAND INC (ASH) Stock Fundamental Analysis
NYSE:ASH - New York Stock Exchange, Inc. - US0441861046 - Common Stock - Currency: USD
ASH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. ASH has an average financial health and profitability rating. ASH has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ASH was profitable.
ASH had positive earnings in 4 of the past 5 years.
Of the past 5 years ASH 4 years had a positive operating cash flow.
1.2 Ratios
ASH has a Return On Assets of -0.44%. This is in the lower half of the industry: ASH underperforms 65.88% of its industry peers.
ASH's Return On Equity of -0.89% is on the low side compared to the rest of the industry. ASH is outperformed by 61.18% of its industry peers.
ASH's Return On Invested Capital of 3.71% is in line compared to the rest of the industry. ASH outperforms 44.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.81%.
The 3 year average ROIC (3.69%) for ASH is below the current ROIC(3.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -0.89% | ||
| ROIC | 3.71% |
ROA(3y)6.97%
ROA(5y)3.37%
ROE(3y)13.48%
ROE(5y)6.34%
ROIC(3y)3.69%
ROIC(5y)3.32%
1.3 Margins
In the last couple of years the Profit Margin of ASH has declined.
Looking at the Operating Margin, with a value of 11.05%, ASH is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
In the last couple of years the Operating Margin of ASH has grown nicely.
ASH's Gross Margin of 32.80% is fine compared to the rest of the industry. ASH outperforms 62.35% of its industry peers.
ASH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.05% | ||
| PM (TTM) | N/A | ||
| GM | 32.8% |
OM growth 3Y-1.66%
OM growth 5Y9.22%
PM growth 3Y-8.44%
PM growth 5Y-19.4%
GM growth 3Y0.22%
GM growth 5Y1.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ASH is destroying value.
The number of shares outstanding for ASH has been reduced compared to 1 year ago.
The number of shares outstanding for ASH has been reduced compared to 5 years ago.
The debt/assets ratio for ASH is higher compared to a year ago.
2.2 Solvency
ASH has an Altman-Z score of 2.15. 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 decent Altman-Z score value of 2.15, ASH is doing good in the industry, outperforming 63.53% of the companies in the same industry.
ASH has a Debt/Equity ratio of 0.51. This is a neutral value indicating ASH is somewhat dependend on debt financing.
The Debt to Equity ratio of ASH (0.51) is better than 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.46
WACC8.05%
2.3 Liquidity
ASH has a Current Ratio of 2.52. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
ASH has a Current ratio of 2.52. This is in the better half of the industry: ASH outperforms 71.76% of its industry peers.
A Quick Ratio of 1.27 indicates that ASH should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, ASH perfoms like the industry average, outperforming 54.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.16% over the past year.
Measured over the past years, ASH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.23% on average per year.
Looking at the last year, ASH shows a decrease in Revenue. The Revenue has decreased by -4.35% in the last year.
ASH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.33% yearly.
EPS 1Y (TTM)22.16%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-37.78%
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-14.38%
3.2 Future
The Earnings Per Share is expected to grow by 11.51% on average over the next years. This is quite good.
Based on estimates for the next years, ASH will show a decrease in Revenue. The Revenue will decrease by -0.38% on average per year.
EPS Next Y-1.89%
EPS Next 2Y10.24%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue Next Year-8.23%
Revenue Next 2Y-2.75%
Revenue Next 3Y-0.38%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.57, which 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 72.94% of the companies listed in the same industry.
ASH is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.74 indicates a reasonable valuation of ASH.
Based on the Price/Forward Earnings ratio, ASH is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ASH to the average of the S&P500 Index (22.10), we can say ASH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
71.76% of the companies in the same industry are more expensive than ASH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y10.24%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
The stock price of ASH dropped by -22.68% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.34, ASH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, ASH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
On average, the dividend of ASH grows each year by 8.69%, which is quite nice.
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)8.69%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
The dividend of ASH is growing, but earnings are growing more, so the dividend growth is sustainable.
DPN/A
EPS Next 2Y10.24%
EPS Next 3Y11.51%
58.37
-1.27 (-2.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.23%
Inst Owner Change2.9%
Ins Owners1%
Ins Owner Change4.82%
Market Cap2.75B
Analysts80
Price Target89.87 (53.97%)
Short Float %3.1%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend1.59
Dividend Growth(5Y)8.69%
DPN/A
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)26.19%
Min EPS beat(2)-2.71%
Max EPS beat(2)55.09%
EPS beat(4)3
Avg EPS beat(4)16.04%
Min EPS beat(4)-2.71%
Max EPS beat(4)55.09%
EPS beat(8)4
Avg EPS beat(8)18.52%
EPS beat(12)7
Avg EPS beat(12)14.06%
EPS beat(16)7
Avg EPS beat(16)8.53%
Revenue beat(2)0
Avg Revenue beat(2)-3.95%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-3.22%
Revenue beat(12)2
Avg Revenue beat(12)-2.09%
Revenue beat(16)2
Avg Revenue beat(16)-6.96%
PT rev (1m)-3.29%
PT rev (3m)-8.64%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)-12.84%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-4.71%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 10.74 | ||
| P/S | 1.35 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.06 | ||
| P/tB | 4.09 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)4.3
EY7.37%
EPS(NY)5.43
Fwd EY9.31%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS43.37
BVpS54.94
TBVpS14.29
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -0.89% | ||
| ROCE | 4.7% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 6.69% | ||
| OM | 11.05% | ||
| PM (TTM) | N/A | ||
| GM | 32.8% | ||
| FCFM | N/A |
ROA(3y)6.97%
ROA(5y)3.37%
ROE(3y)13.48%
ROE(5y)6.34%
ROIC(3y)3.69%
ROIC(5y)3.32%
ROICexc(3y)4.03%
ROICexc(5y)3.59%
ROICexgc(3y)7.3%
ROICexgc(5y)6.62%
ROCE(3y)4.67%
ROCE(5y)4.21%
ROICexcg growth 3Y0.9%
ROICexcg growth 5Y11.64%
ROICexc growth 3Y2.34%
ROICexc growth 5Y15.15%
OM growth 3Y-1.66%
OM growth 5Y9.22%
PM growth 3Y-8.44%
PM growth 5Y-19.4%
GM growth 3Y0.22%
GM growth 5Y1.06%
F-ScoreN/A
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.15 |
F-ScoreN/A
WACC8.05%
ROIC/WACC0.46
Cap/Depr(3y)55.62%
Cap/Depr(5y)53.3%
Cap/Sales(3y)6.32%
Cap/Sales(5y)6.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.16%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-37.78%
EPS Next Y-1.89%
EPS Next 2Y10.24%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-14.38%
Revenue Next Year-8.23%
Revenue Next 2Y-2.75%
Revenue Next 3Y-0.38%
Revenue Next 5YN/A
EBIT growth 1Y27.68%
EBIT growth 3Y-1.63%
EBIT growth 5Y8.86%
EBIT Next Year72.58%
EBIT Next 3Y27.03%
EBIT Next 5YN/A
FCF growth 1Y275.34%
FCF growth 3Y-15.55%
FCF growth 5Y23.86%
OCF growth 1Y69.14%
OCF growth 3Y-9.8%
OCF growth 5Y11.27%