ASHLAND INC (ASH)
US0441861046 - Common Stock
Taking everything into account, ASH scores 5 out of 10 in our fundamental rating. ASH was compared to 83 industry peers in the Chemicals industry. ASH has only an average score on both its financial health and profitability. ASH has a decent growth rate and is not valued too expensively. ASH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ASH had positive earnings in the past year.
In the past year ASH had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.58%, ASH is in line with its industry, outperforming 55.42% of the companies in the same industry.
With a Return On Equity value of 4.99%, ASH perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
ASH has a worse Return On Invested Capital (2.65%) than 67.47% of its industry peers.
ASH had an Average Return On Invested Capital over the past 3 years of 3.69%. This is below the industry average of 7.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 4.99% | ||
| ROIC | 2.65% |
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
Looking at the Profit Margin, with a value of 7.02%, ASH is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
ASH's Profit Margin has declined 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 grown nicely.
ASH has a Gross Margin (29.82%) which is in line with its industry peers.
ASH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.39% | ||
| PM (TTM) | 7.02% | ||
| GM | 29.82% |
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
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.
The number of shares outstanding for ASH has been reduced compared to 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 2.24. 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 2.24, ASH is in the better half of the industry, outperforming 65.06% of the companies in the same industry.
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 73.49% 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 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.35
WACC7.48%
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 better Current ratio (2.98) than 84.34% of its industry peers.
A Quick Ratio of 1.84 indicates that ASH should not have too much problems paying its short term obligations.
ASH has a Quick ratio of 1.84. This is in the better half of the industry: ASH outperforms 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
ASH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.64%, 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.
The Revenue has decreased by -3.51% in the past year.
The Revenue has been decreasing by -0.33% on average over the past years.
EPS 1Y (TTM)10.64%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%207.32%
Revenue 1Y (TTM)-3.51%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%0.77%
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 13.60% yearly.
Based on estimates for the next years, ASH will show a small growth in Revenue. The Revenue will grow by 0.91% on average per year.
EPS Next Y1.17%
EPS Next 2Y11.69%
EPS Next 3Y13.6%
EPS Next 5YN/A
Revenue Next Year-6.13%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.91%
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 stable.
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 15.92, ASH is valued correctly.
66.27% of the companies in the same industry are more expensive than ASH, based on the Price/Earnings ratio.
ASH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
The Price/Forward Earnings ratio is 15.73, which 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 23.99, ASH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 15.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASH is valued a bit cheaper than the industry average as 61.45% of the companies are valued more expensively.
75.90% of the companies in the same industry are more expensive than ASH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 9.37 |
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 13.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.64
PEG (5Y)1.3
EPS Next 2Y11.69%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.25%.
Compared to an average industry Dividend Yield of 3.35, ASH pays a bit more dividend than its industry peers.
ASH's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
ASH pays out 53.38% of its income as dividend. 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 2Y11.69%
EPS Next 3Y13.6%
ASHLAND INC
NYSE:ASH (12/26/2024, 9:30:47 AM)
71.15
-0.55 (-0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.93%
Inst Owner Change-3.6%
Ins Owners0.53%
Ins Owner Change4.23%
Market Cap3.36B
Analysts80
Price Target98.37 (38.26%)
Short Float %2.27%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Dividend Growth(5Y)8.69%
DP53.38%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.89%
Min EPS beat(2)1.92%
Max EPS beat(2)9.87%
EPS beat(4)3
Avg EPS beat(4)26.4%
Min EPS beat(4)-35.34%
Max EPS beat(4)129.14%
EPS beat(8)4
Avg EPS beat(8)11.87%
EPS beat(12)6
Avg EPS beat(12)9.17%
EPS beat(16)8
Avg EPS beat(16)7.4%
Revenue beat(2)0
Avg Revenue beat(2)-3.61%
Min Revenue beat(2)-6.28%
Max Revenue beat(2)-0.93%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-6.28%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-2.58%
Revenue beat(12)2
Avg Revenue beat(12)-5.67%
Revenue beat(16)2
Avg Revenue beat(16)-10.48%
PT rev (1m)-5.75%
PT rev (3m)-5.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)-12.82%
EPS NY rev (3m)-17.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-6.04%
Revenue NY rev (3m)-8.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 15.73 | ||
| P/S | 1.59 | ||
| P/FCF | 11.23 | ||
| P/OCF | 7.19 | ||
| P/B | 1.13 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 9.37 |
EPS(TTM)4.47
EY6.28%
EPS(NY)4.52
Fwd EY6.36%
FCF(TTM)6.34
FCFY8.91%
OCF(TTM)9.9
OCFY13.91%
SpS44.7
BVpS62.89
TBVpS18.1
PEG (NY)13.64
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 4.99% | ||
| ROCE | 3.35% | ||
| ROIC | 2.65% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 5.05% | ||
| OM | 8.39% | ||
| PM (TTM) | 7.02% | ||
| GM | 29.82% | ||
| FCFM | 14.18% |
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-Score4
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 4.43 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 59.36% | ||
| Cap/Sales | 7.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.52% | ||
| Profit Quality | 202.03% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 2.24 |
F-Score4
WACC7.48%
ROIC/WACC0.35
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)10.64%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%207.32%
EPS Next Y1.17%
EPS Next 2Y11.69%
EPS Next 3Y13.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.51%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%0.77%
Revenue Next Year-6.13%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.91%
Revenue Next 5YN/A
EBIT growth 1Y-28.63%
EBIT growth 3Y-1.63%
EBIT growth 5Y8.86%
EBIT Next Year80.52%
EBIT Next 3Y29.24%
EBIT Next 5YN/A
FCF growth 1Y522.92%
FCF growth 3Y-15.55%
FCF growth 5Y23.86%
OCF growth 1Y139.49%
OCF growth 3Y-9.8%
OCF growth 5Y11.27%