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 decent growth rate and is not valued too expensively.
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
The Return On Assets of ASH (-18.30%) is worse than 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.
The Return On Invested Capital of ASH (3.77%) is comparable to the rest of the industry.
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
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASH is destroying value.
The number of shares outstanding for ASH has been reduced compared to 1 year ago.
ASH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ASH has a worse debt to assets ratio.
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 of 2.07. This is comparable to the rest of the industry: ASH outperforms 59.04% of its industry peers.
ASH has a Debt/Equity ratio of 0.73. This is a neutral value indicating 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 | 2.07 |
ROIC/WACC0.32
WACC11.68%
2.3 Liquidity
A Current Ratio of 2.85 indicates that ASH has no problem at all paying its short term obligations.
ASH's Current ratio of 2.85 is amongst the best of the industry. ASH outperforms 81.93% 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.
Looking at the Quick ratio, with a value of 1.51, ASH is in the better half of 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
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.
The Revenue has grown by 76.88% in the past year. This is a very strong growth!
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)76.88%
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
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
ASH is valuated rather expensively with a Price/Earnings ratio of 18.39.
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 27.19.
ASH is valuated correctly with a Price/Forward Earnings ratio of 15.68.
ASH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ASH is cheaper than 61.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ASH to the average of the S&P500 Index (23.92), we can say ASH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
63.86% 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 | 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.
ASH's earnings are expected to grow with 17.84% in the coming years. This may justify a more expensive valuation.
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%.
ASH's Dividend Yield is a higher than the industry average which is at 2.34.
Compared to an average S&P500 Dividend Yield of 1.92, ASH pays a bit more dividend than the S&P500 average.
| 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 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
ASH has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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%
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.