ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
63.32 USD
+0.23 (+0.36%)
63.32 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ASH. ASH was compared to 82 industry peers in the Chemicals industry. ASH has only an average score on both its financial health and profitability. ASH has a correct valuation and a medium 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.
- 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
- The Return On Assets of ASH (-18.30%) is worse than 85.37% of its industry peers.
- ASH has a worse Return On Equity (-44.33%) than 79.27% of its industry peers.
- ASH's Return On Invested Capital of 3.77% is in line compared to the rest of the industry. ASH outperforms 54.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ASH 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
- The Operating Margin of ASH (10.96%) is better than 60.98% of its industry peers.
- ASH's Operating Margin has improved in the last couple of years.
- ASH's Gross Margin of 33.00% is fine compared to the rest of the industry. ASH outperforms 64.63% 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
- 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
- Compared to 5 years ago, ASH has less shares outstanding
- Compared to 1 year ago, ASH has a worse debt to assets ratio.
2.2 Solvency
- ASH has an Altman-Z score of 2.08. 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.
- ASH has a Altman-Z score of 2.08. This is comparable to the rest of the industry: ASH outperforms 58.54% 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 | 2.08 |
ROIC/WACC0.32
WACC11.76%
2.3 Liquidity
- A Current Ratio of 2.85 indicates that ASH has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.85, ASH belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
- A Quick Ratio of 1.51 indicates that ASH should not have too much problems paying its short term obligations.
- ASH's Quick ratio of 1.51 is fine compared to the rest of the industry. ASH outperforms 62.20% 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.
- ASH shows a strong growth in Revenue. In the last year, the Revenue has grown by 76.88%.
- 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.
- The Revenue is expected to grow by 3.00% on average over the next years.
EPS Next Y17.28%
EPS Next 2Y18.46%
EPS Next 3Y17.84%
EPS Next 5YN/A
Revenue Next Year2.22%
Revenue Next 2Y2.89%
Revenue Next 3Y3%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 18.68.
- The rest of the industry has a similar Price/Earnings ratio as ASH.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ASH is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.93, the valuation of ASH can be described as correct.
- ASH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ASH is cheaper than 62.20% of the companies in the same industry.
- ASH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASH indicates a somewhat cheap valuation: ASH is cheaper than 64.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.28 |
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)1.08
PEG (5Y)4.79
EPS Next 2Y18.46%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
- ASH has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.28, 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 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
- 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 2Y18.46%
EPS Next 3Y17.84%
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 18.68 and the Price/Book (PB) ratio is 1.52.
Can you provide the financial health for ASH stock?
The financial health rating of ASHLAND INC (ASH) is 5 / 10.