ASHLAND INC (ASH) Stock Fundamental Analysis
NYSE:ASH - New York Stock Exchange, Inc. - US0441861046 - Common Stock - Currency: USD
Overall ASH gets a fundamental rating of 3 out of 10. We evaluated ASH against 85 industry peers in the Chemicals industry. While ASH seems to be doing ok healthwise, there are quite some concerns on its profitability. ASH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ASH was profitable.
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 (-2.14%) is worse than 65.88% of its industry peers.
The Return On Equity of ASH (-4.38%) is worse than 61.18% of its industry peers.
ASH has a Return On Invested Capital of 3.68%. This is comparable to the rest of the industry: ASH outperforms 41.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.14% | ||
| ROE | -4.38% | ||
| ROIC | 3.68% |
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
ASH's Profit Margin has declined in the last couple of years.
ASH has a Operating Margin of 11.38%. This is in the better half of the industry: ASH outperforms 62.35% of its industry peers.
ASH's Operating Margin has improved in the last couple of years.
ASH's Gross Margin of 33.28% is fine compared to the rest of the industry. ASH outperforms 64.71% of its industry peers.
In the last couple of years the Gross Margin of ASH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.38% | ||
| PM (TTM) | N/A | ||
| GM | 33.28% |
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
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
The number of shares outstanding for ASH has been reduced compared to 5 years ago.
ASH has a worse debt/assets ratio than last year.
2.2 Solvency
ASH has an Altman-Z score of 2.03. 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.
The Altman-Z score of ASH (2.03) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.52 indicates that ASH is somewhat dependend on debt financing.
ASH's Debt to Equity ratio of 0.52 is fine compared to the rest of the industry. ASH outperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC0.45
WACC8.14%
2.3 Liquidity
A Current Ratio of 2.32 indicates that ASH has no problem at all paying its short term obligations.
The Current ratio of ASH (2.32) is better than 62.35% of its industry peers.
A Quick Ratio of 1.15 indicates that ASH should not have too much problems paying its short term obligations.
The Quick ratio of ASH (1.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
ASH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.64%, which is quite good.
ASH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.23% yearly.
Looking at the last year, ASH shows a decrease in Revenue. The Revenue has decreased by -7.63% in the last year.
Measured over the past years, ASH shows a decrease in Revenue. The Revenue has been decreasing by -0.33% on average per year.
EPS 1Y (TTM)19.64%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-22.05%
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-16.7%
3.2 Future
Based on estimates for the next years, ASH will show a small growth in Earnings Per Share. The EPS will grow by 7.19% on average per year.
Based on estimates for the next years, ASH will show a decrease in Revenue. The Revenue will decrease by -2.63% on average per year.
EPS Next Y-13.42%
EPS Next 2Y3.47%
EPS Next 3Y7.19%
EPS Next 5YN/A
Revenue Next Year-12.39%
Revenue Next 2Y-5.31%
Revenue Next 3Y-2.63%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.29 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 76.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ASH to the average of the S&P500 Index (27.30), we can say ASH is valued rather cheaply.
The Price/Forward Earnings ratio is 11.16, which indicates a very decent valuation of ASH.
ASH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ASH is cheaper than 70.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ASH to the average of the S&P500 Index (21.76), we can say ASH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 11.16 |
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 77.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y3.47%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, ASH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.57, ASH pays a bit more dividend than its industry peers.
ASH's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of ASH is nicely growing with an annual growth rate of 8.69%!
ASH has been paying a dividend for at least 10 years, so it has a reliable track record.
ASH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.69%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
The dividend of ASH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y3.47%
EPS Next 3Y7.19%
53.42
-1.05 (-1.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.19%
Inst Owner Change-0.01%
Ins Owners0.53%
Ins Owner Change0.85%
Market Cap2.44B
Analysts78.67
Price Target69.61 (30.31%)
Short Float %3.35%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)21.99%
Min EPS beat(2)-11.11%
Max EPS beat(2)55.09%
EPS beat(4)2
Avg EPS beat(4)10.8%
Min EPS beat(4)-11.11%
Max EPS beat(4)55.09%
EPS beat(8)4
Avg EPS beat(8)17.83%
EPS beat(12)6
Avg EPS beat(12)12.38%
EPS beat(16)7
Avg EPS beat(16)9.07%
Revenue beat(2)0
Avg Revenue beat(2)-6.08%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-5.65%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.35%
Revenue beat(12)1
Avg Revenue beat(12)-2.65%
Revenue beat(16)2
Avg Revenue beat(16)-6.02%
PT rev (1m)0.55%
PT rev (3m)-16%
EPS NQ rev (1m)-1.1%
EPS NQ rev (3m)-14.66%
EPS NY rev (1m)-2.6%
EPS NY rev (3m)-11.66%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-5.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 11.16 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.95 | ||
| P/tB | 3.92 | ||
| EV/EBITDA | 7.47 |
EPS(TTM)4.02
EY7.53%
EPS(NY)4.79
Fwd EY8.96%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS42.68
BVpS56.01
TBVpS13.64
PEG (NY)N/A
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.14% | ||
| ROE | -4.38% | ||
| ROCE | 4.65% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.81% | ||
| ROICexgc | 6.58% | ||
| OM | 11.38% | ||
| PM (TTM) | N/A | ||
| GM | 33.28% | ||
| 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.03 |
F-ScoreN/A
WACC8.14%
ROIC/WACC0.45
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)19.64%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-22.05%
EPS Next Y-13.42%
EPS Next 2Y3.47%
EPS Next 3Y7.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-16.7%
Revenue Next Year-12.39%
Revenue Next 2Y-5.31%
Revenue Next 3Y-2.63%
Revenue Next 5YN/A
EBIT growth 1Y37.04%
EBIT growth 3Y-1.63%
EBIT growth 5Y8.86%
EBIT Next Year59.92%
EBIT Next 3Y23.95%
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%