ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
59.15 USD
-1.47 (-2.42%)
59.15 USD
0 (0%)
ASH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
In the past year ASH was profitable.
ASH had a positive operating cash flow in the past year.
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
With a Return On Assets value of -18.30%, ASH is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
ASH's Return On Equity of -44.33% is on the low side compared to the rest of the industry. ASH is outperformed by 79.27% of its industry peers.
ASH has a Return On Invested Capital (3.77%) 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 6.05%.
The 3 year average ROIC (3.45%) for ASH is below the current ROIC(3.77%), indicating increased profibility in the last year.
| 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
Looking at the Operating Margin, with a value of 10.96%, ASH is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
In the last couple of years the Operating Margin of ASH has grown nicely.
ASH's Gross Margin of 33.00% is fine compared to the rest of the industry. ASH outperforms 65.85% of its industry peers.
ASH's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for ASH is higher compared to a year ago.
2.2 Solvency
ASH has an Altman-Z score of 2.05. 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.
Looking at the Altman-Z score, with a value of 2.05, ASH is in line with its industry, outperforming 57.32% of the companies in the same industry.
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 | 2.05 |
ROIC/WACC0.47
WACC8.03%
2.3 Liquidity
ASH has a Current Ratio of 2.85. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
ASH has a Current ratio of 2.85. This is amongst the best in the industry. ASH outperforms 81.71% of its industry peers.
A Quick Ratio of 1.51 indicates that ASH should not have too much problems paying its short term obligations.
ASH has a Quick ratio of 1.51. This is in the better half of the industry: ASH outperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for ASH have decreased strongly by -24.16% in the last year.
ASH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
Looking at the last year, ASH shows a very strong growth in Revenue. 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
Based on estimates for the next years, ASH will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.84% on average per year.
ASH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y18.24%
EPS Next 2Y19.27%
EPS Next 3Y17.84%
EPS Next 5YN/A
Revenue Next Year2.17%
Revenue Next 2Y2.97%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ASH is valuated rather expensively with a Price/Earnings ratio of 17.45.
The rest of the industry has a similar Price/Earnings ratio as ASH.
Compared to an average S&P500 Price/Earnings ratio of 26.54, ASH is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.76 indicates a correct valuation of ASH.
ASH's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, ASH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
67.07% 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 | 9.02 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.96
PEG (5Y)4.48
EPS Next 2Y19.27%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.85%.
ASH's Dividend Yield is a higher than the industry average which is at 3.98.
Compared to an average S&P500 Dividend Yield of 2.27, ASH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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.
The dividend of ASH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-9%
EPS Next 2Y19.27%
EPS Next 3Y17.84%
59.15
-1.47 (-2.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.65%
Inst Owner Change-0.16%
Ins Owners0.58%
Ins Owner Change3%
Market Cap2.70B
Revenue(TTM)1.82B
Net Income(TTM)-844.00M
Analysts77.65
Price Target62.35 (5.41%)
Short Float %7.61%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend1.63
Dividend Growth(5Y)8.42%
DP-9%
Div Incr Years15
Div Non Decr Years15
Ex-Date
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)-1.93%
PT rev (3m)-3.92%
EPS NQ rev (1m)-17.49%
EPS NQ rev (3m)-37.82%
EPS NY rev (1m)-7.7%
EPS NY rev (3m)-11.28%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 14.76 | ||
| P/S | 1.48 | ||
| P/FCF | N/A | ||
| P/OCF | 28.77 | ||
| P/B | 1.42 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)3.39
EY5.73%
EPS(NY)4.01
Fwd EY6.78%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)2.06
OCFY3.48%
SpS39.9
BVpS41.64
TBVpS13.91
PEG (NY)0.96
PEG (5Y)4.48
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 | 2.05 |
F-Score6
WACC8.03%
ROIC/WACC0.47
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 Y18.24%
EPS Next 2Y19.27%
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 Year2.17%
Revenue Next 2Y2.97%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y107.8%
EBIT growth 3Y-14.93%
EBIT growth 5Y3.26%
EBIT Next Year97.84%
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.
Can you provide the valuation status for ASHLAND INC?
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.
What is the valuation of ASHLAND INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ASHLAND INC (ASH) is 17.45 and the Price/Book (PB) ratio is 1.42.
What is the earnings growth outlook for ASHLAND INC?
The Earnings per Share (EPS) of ASHLAND INC (ASH) is expected to grow by 18.24% in the next year.