ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
59.85 USD
+1.18 (+2.01%)
59.85 USD
0 (0%)
ASH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. ASH has an average financial health and profitability rating. ASH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ASH had positive earnings in the past year.
In the past year ASH had a positive cash flow from operations.
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's Return On Assets of -18.30% is on the low side compared to the rest of the industry. ASH is outperformed by 84.34% of its industry peers.
With a Return On Equity value of -44.33%, ASH is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
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 6.09%.
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
Looking at the Operating Margin, with a value of 10.96%, ASH is in the better half of the industry, outperforming 61.45% of the companies in the same industry.
ASH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 33.00%, ASH is doing good in the industry, outperforming 65.06% of the companies in the same industry.
ASH's Gross Margin has improved in the last couple of years.
| 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
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
An Altman-Z score of 2.03 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.03, ASH is in the better half of the industry, outperforming 60.24% 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 48.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC0.33
WACC11.57%
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 81.93% of its industry peers.
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
The earnings per share for ASH have decreased strongly by -24.16% in the last year.
ASH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
ASH shows a strong growth in Revenue. In the last year, 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
Based on estimates for the next years, ASH will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.84% on average per year.
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
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
With a Price/Earnings ratio of 17.65, ASH is valued on the expensive side.
ASH's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. ASH is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.05, ASH is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as ASH.
ASH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
65.06% 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 | 8.81 |
4.3 Compensation for Growth
ASH's 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)1.02
PEG (5Y)4.53
EPS Next 2Y18.46%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.83%. 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 2.46.
ASH's Dividend Yield is a higher than the S&P500 average which is at 1.93.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of ASH is nicely growing with an annual growth rate of 8.42%!
ASH has paid a dividend for at least 10 years, which is 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
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 2Y18.46%
EPS Next 3Y17.84%
59.85
+1.18 (+2.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners96.47%
Inst Owner Change-0.16%
Ins Owners0.58%
Ins Owner Change3%
Market Cap2.74B
Revenue(TTM)1.82B
Net Income(TTM)-844.00M
Analysts77.65
Price Target64.39 (7.59%)
Short Float %8.44%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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)1.77%
PT rev (3m)-0.32%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-42.09%
EPS NY rev (1m)-8.45%
EPS NY rev (3m)-12.38%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.05 | ||
| P/S | 1.5 | ||
| P/FCF | N/A | ||
| P/OCF | 29.11 | ||
| P/B | 1.44 | ||
| P/tB | 4.3 | ||
| EV/EBITDA | 8.81 |
EPS(TTM)3.39
EY5.66%
EPS(NY)3.98
Fwd EY6.64%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)2.06
OCFY3.44%
SpS39.9
BVpS41.64
TBVpS13.91
PEG (NY)1.02
PEG (5Y)4.53
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 | 2.03 |
F-Score6
WACC11.57%
ROIC/WACC0.33
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 3 / 10 to ASHLAND INC (ASH). This can be considered as Overvalued.
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 17.65 and the Price/Book (PB) ratio is 1.44.
Can you provide the financial health for ASH stock?
The financial health rating of ASHLAND INC (ASH) is 5 / 10.