ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
52.9 USD
+0.36 (+0.69%)
52.9 USD
0 (0%)
Taking everything into account, ASH scores 5 out of 10 in our fundamental rating. ASH was compared to 81 industry peers in the Chemicals industry. ASH has an average financial health and profitability rating. ASH is not valued too expensively and it also shows a decent growth rate.
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.
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
Looking at the Return On Assets, with a value of -18.30%, ASH is doing worse than 85.19% of the companies in the same industry.
ASH's Return On Equity of -44.33% is on the low side compared to the rest of the industry. ASH is outperformed by 79.01% of its industry peers.
The Return On Invested Capital of ASH (3.75%) is comparable to the rest of the industry.
ASH had an Average Return On Invested Capital over the past 3 years of 2.84%. This is below the industry average of 6.07%.
The last Return On Invested Capital (3.75%) for ASH is above the 3 year average (2.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.3% | ||
| ROE | -44.33% | ||
| ROIC | 3.75% |
ROA(3y)-4.11%
ROA(5y)1.18%
ROE(3y)-10.91%
ROE(5y)0.81%
ROIC(3y)2.84%
ROIC(5y)3.25%
1.3 Margins
ASH has a Operating Margin of 10.90%. This is in the better half of the industry: ASH outperforms 61.73% of its industry peers.
In the last couple of years the Operating Margin of ASH has declined.
ASH has a better Gross Margin (32.93%) than 66.67% 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 | 10.9% | ||
| PM (TTM) | N/A | ||
| GM | 32.93% |
OM growth 3Y-26.76%
OM growth 5Y-8.78%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.64%
GM growth 5Y0.26%
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.
ASH has less shares outstanding than it did 1 year ago.
ASH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ASH has a worse debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.73 indicates that ASH is somewhat dependend on debt financing.
ASH has a Debt to Equity ratio of 0.73. This is comparable to the rest of the industry: ASH outperforms 50.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.46
WACC8.12%
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's Current ratio of 2.85 is amongst the best of the industry. ASH outperforms 81.48% of its industry peers.
A Quick Ratio of 1.51 indicates that ASH should not have too much problems paying its short term obligations.
The Quick ratio of ASH (1.51) is better than 60.49% 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.
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 76.98%.
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)76.98%
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 22.37% on average over the next years. This is a very strong growth
Based on estimates for the next years, ASH will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
EPS Next Y28.1%
EPS Next 2Y22.9%
EPS Next 3Y22.37%
EPS Next 5YN/A
Revenue Next Year2.06%
Revenue Next 2Y2.89%
Revenue Next 3Y3.1%
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
The Price/Earnings ratio is 15.60, which indicates a correct valuation of ASH.
ASH's Price/Earnings ratio is a bit cheaper when compared to the industry. ASH is cheaper than 62.96% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, ASH is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.18, the valuation of ASH can be described as correct.
Based on the Price/Forward Earnings ratio, ASH is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ASH to the average of the S&P500 Index (36.59), we can say ASH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.18 |
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 67.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
ASH's 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 22.37% in the coming years.
PEG (NY)0.56
PEG (5Y)4
EPS Next 2Y22.9%
EPS Next 3Y22.37%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 3.16%. 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 3.94.
ASH's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
On average, the dividend of ASH grows each year by 8.49%, which is quite nice.
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)8.49%
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 2Y22.9%
EPS Next 3Y22.37%
52.9
+0.36 (+0.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change-5.32%
Ins Owners0.53%
Ins Owner Change3%
Market Cap2.42B
Revenue(TTM)1.82B
Net Income(TTM)-844.00M
Analysts77.65
Price Target63.27 (19.6%)
Short Float %4.72%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend1.64
Dividend Growth(5Y)8.49%
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)-2.36%
PT rev (3m)-2.51%
EPS NQ rev (1m)-27.31%
EPS NQ rev (3m)-38.07%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)-2.04%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.18 | ||
| P/S | 1.32 | ||
| P/FCF | N/A | ||
| P/OCF | 25.72 | ||
| P/B | 1.27 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)3.39
EY6.41%
EPS(NY)4.34
Fwd EY8.21%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)2.06
OCFY3.89%
SpS39.93
BVpS41.65
TBVpS13.91
PEG (NY)0.56
PEG (5Y)4
Graham Number56.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.3% | ||
| ROE | -44.33% | ||
| ROCE | 4.75% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 5.81% | ||
| OM | 10.9% | ||
| PM (TTM) | N/A | ||
| GM | 32.93% | ||
| FCFM | N/A |
ROA(3y)-4.11%
ROA(5y)1.18%
ROE(3y)-10.91%
ROE(5y)0.81%
ROIC(3y)2.84%
ROIC(5y)3.25%
ROICexc(3y)3.03%
ROICexc(5y)3.5%
ROICexgc(3y)5.23%
ROICexgc(5y)6.26%
ROCE(3y)3.59%
ROCE(5y)4.12%
ROICexgc growth 3Y-32.85%
ROICexgc growth 5Y-9.76%
ROICexc growth 3Y-27.68%
ROICexc growth 5Y-4.2%
OM growth 3Y-26.76%
OM growth 5Y-8.78%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.64%
GM growth 5Y0.26%
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 | 250 | ||
| Cash Conversion | 21.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | N/A |
F-Score6
WACC8.12%
ROIC/WACC0.46
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 Y28.1%
EPS Next 2Y22.9%
EPS Next 3Y22.37%
EPS Next 5YN/A
Revenue 1Y (TTM)76.98%
Revenue growth 3Y-8.63%
Revenue growth 5Y-1.98%
Sales Q2Q%-8.43%
Revenue Next Year2.06%
Revenue Next 2Y2.89%
Revenue Next 3Y3.1%
Revenue Next 5YN/A
EBIT growth 1Y106.76%
EBIT growth 3Y-33.08%
EBIT growth 5Y-10.59%
EBIT Next Year109.86%
EBIT Next 3YN/A
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 5 / 10 to ASH.
Can you provide the valuation status for ASHLAND INC?
ChartMill assigns a valuation rating of 5 / 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 15.6 and the Price/Book (PB) ratio is 1.27.
What is the earnings growth outlook for ASHLAND INC?
The Earnings per Share (EPS) of ASHLAND INC (ASH) is expected to grow by 28.1% in the next year.