ASHLAND INC (ASH)
US0441861046 - Common Stock
We assign a fundamental rating of 5 out of 10 to ASH. ASH was compared to 84 industry peers in the Chemicals industry. ASH has an average financial health and profitability rating. ASH is valued correctly, but it does not seem to be growing. ASH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ASH was profitable.
ASH had a positive operating cash flow in the past year.
Of the past 5 years ASH 4 years were profitable.
Of the past 5 years ASH 4 years had a positive operating cash flow.
1.2 Ratios
ASH has a Return On Assets (2.58%) which is in line with its industry peers.
ASH has a Return On Equity of 4.99%. This is comparable to the rest of the industry: ASH outperforms 53.57% of its industry peers.
ASH has a Return On Invested Capital (2.94%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.35%.
| 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
With a decent Profit Margin value of 7.02%, ASH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ASH's Profit Margin has improved in the last couple of years.
ASH has a Operating Margin (8.39%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ASH has declined.
With a Gross Margin value of 29.82%, ASH perfoms like the industry average, outperforming 54.76% of the companies in the same 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
ASH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 2.44 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASH's Altman-Z score of 2.44 is fine compared to the rest of the industry. ASH outperforms 66.67% of its industry peers.
ASH has a debt to FCF ratio of 4.43. This is a neutral value as ASH would need 4.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.43, ASH is in the better half of the industry, outperforming 76.19% 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 has a better Debt to Equity ratio (0.45) than 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.41
WACC7.25%
2.3 Liquidity
ASH has a Current Ratio of 2.98. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
ASH has a Current ratio of 2.98. This is in the better half of the industry: ASH outperforms 76.19% of its industry peers.
ASH has a Quick Ratio of 1.84. This is a normal value and indicates that ASH is financially healthy and should not expect problems in meeting its short term obligations.
ASH's Quick ratio of 1.84 is fine compared to the rest of the industry. ASH outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The earnings per share for ASH have decreased strongly by -28.88% in the last year.
Measured over the past 5 years, ASH shows a small growth in Earnings Per Share. The EPS has been growing by 2.45% on average per year.
The Revenue has decreased by -8.54% in the past year.
The Revenue has been decreasing by -3.28% on average over the past years.
EPS 1Y (TTM)-28.88%
EPS 3Y13%
EPS 5Y2.45%
EPS Q2Q%21.14%
Revenue 1Y (TTM)-8.54%
Revenue growth 3Y2.81%
Revenue growth 5Y-3.28%
Sales Q2Q%-0.37%
3.2 Future
ASH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.13% yearly.
The Revenue is expected to grow by 1.04% on average over the next years.
EPS Next Y12.78%
EPS Next 2Y16.24%
EPS Next 3Y17.13%
EPS Next 5YN/A
Revenue Next Year-3.46%
Revenue Next 2Y-0.77%
Revenue Next 3Y1.04%
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 23.48, ASH is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as ASH.
ASH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.62.
Based on the Price/Forward Earnings ratio of 15.57, the valuation of ASH can be described as correct.
ASH's Price/Forward Earnings is on the same level as the industry average.
ASH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
ASH's Enterprise Value to EBITDA is on the same level as the industry average.
ASH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ASH is cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.25 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ASH does not grow enough to justify the current Price/Earnings ratio.
ASH's earnings are expected to grow with 17.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)9.6
EPS Next 2Y16.24%
EPS Next 3Y17.13%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 1.88%. 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 2.93.
ASH's Dividend Yield is comparable with the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of ASH is nicely growing with an annual growth rate of 8.39%!
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)8.39%
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.
The dividend of ASH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.38%
EPS Next 2Y16.24%
EPS Next 3Y17.13%
ASHLAND INC
NYSE:ASH (9/6/2024, 8:04:00 PM)
After market: 85 -0.01 (-0.01%)85.01
-1.26 (-1.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(4)
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 | 23.48 | ||
| Fwd PE | 15.57 | ||
| 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)1.84
PEG (5Y)9.6
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)-28.88%
EPS 3Y13%
EPS 5Y
EPS Q2Q%
EPS Next Y12.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.54%
Revenue growth 3Y2.81%
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