ASHLAND INC (ASH)
US0441861046 - Common Stock
ASH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 has a decent growth rate and is not valued too expensively. Finally ASH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ASH was profitable.
In the past year ASH had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ASH reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: ASH reported negative operating cash flow in multiple years.
1.2 Ratios
ASH's Return On Assets of 2.58% is in line compared to the rest of the industry. ASH outperforms 56.47% of its industry peers.
ASH's Return On Equity of 4.99% is in line compared to the rest of the industry. ASH outperforms 50.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.94%, ASH is doing worse than 62.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ASH is below the industry average of 7.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 4.99% | ||
| ROIC | 2.94% |
ROA(3y)7.08%
ROA(5y)4.16%
ROE(3y)14.18%
ROE(5y)7.99%
ROIC(3y)4.04%
ROIC(5y)3.3%
1.3 Margins
Looking at the Profit Margin, with a value of 7.02%, ASH is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
In the last couple of years the Profit Margin of ASH has grown nicely.
ASH has a Operating Margin of 8.39%. This is comparable to the rest of the industry: ASH outperforms 49.41% of its industry peers.
In the last couple of years the Operating Margin of ASH has declined.
ASH has a Gross Margin (29.82%) which is comparable to the rest of the industry.
ASH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.39% | ||
| PM (TTM) | 7.02% | ||
| GM | 29.82% |
OM growth 3Y7.6%
OM growth 5Y-6.83%
PM growth 3YN/A
PM growth 5Y13.03%
GM growth 3Y0.86%
GM growth 5Y-3.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASH is destroying value.
ASH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.32 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ASH (2.32) is better than 63.53% of its industry peers.
The Debt to FCF ratio of ASH is 4.43, which is a neutral value as it means it would take ASH, 4.43 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.43, ASH is doing good in the industry, outperforming 74.12% of the companies in the same industry.
ASH has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
ASH's Debt to Equity ratio of 0.45 is fine compared to the rest of the industry. ASH outperforms 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.38
WACC7.69%
2.3 Liquidity
A Current Ratio of 2.98 indicates that ASH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.98, ASH belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
A Quick Ratio of 1.84 indicates that ASH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.84, ASH is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.64% 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.
EPS 1Y (TTM)10.64%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%207.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.77%
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 15.11% on average per year.
ASH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.07% yearly.
EPS Next Y16.05%
EPS Next 2Y15.94%
EPS Next 3Y15.11%
EPS Next 5YN/A
Revenue Next Year-0.09%
Revenue Next 2Y2.2%
Revenue Next 3Y5.07%
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.
4. Valuation
4.1 Price/Earnings Ratio
ASH is valuated rather expensively with a Price/Earnings ratio of 17.68.
Based on the Price/Earnings ratio, ASH is valued a bit cheaper than the industry average as 67.06% of the companies are valued more expensively.
ASH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.20.
With a Price/Forward Earnings ratio of 15.24, ASH is valued correctly.
ASH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ASH is cheaper than 61.18% of the companies in the same industry.
ASH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 15.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASH is valued a bit cheaper than the industry average as 62.35% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow 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 | 12.91 | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
ASH's 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 15.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)1.45
EPS Next 2Y15.94%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.08%.
ASH's Dividend Yield is a higher than the industry average which is at 3.10.
Compared to an average S&P500 Dividend Yield of 2.23, ASH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
On average, the dividend of ASH grows each year by 8.39%, which is quite nice.
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)8.39%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
53.38% of the earnings are spent on dividend by ASH. This is a bit on the high side, but may be sustainable.
ASH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.38%
EPS Next 2Y15.94%
EPS Next 3Y15.11%
ASHLAND INC
NYSE:ASH (11/22/2024, 8:24:05 PM)
After market: 79.05 0 (0%)79.05
+1.41 (+1.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 15.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.1
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 4.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.39% | ||
| PM (TTM) | 7.02% | ||
| GM | 29.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.64%
EPS 3Y2.51%
EPS 5Y
EPS Q2Q%
EPS Next Y16.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y