ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
59.41 USD
-0.29 (-0.49%)
59.41 USD
0 (0%)
ASH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. Both the profitability and the financial health of ASH get a neutral evaluation. Nothing too spectacular is happening here. ASH is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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
The Return On Assets of ASH (-18.30%) is worse than 84.34% of its industry peers.
With a Return On Equity value of -44.33%, ASH is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
ASH's Return On Invested Capital of 3.77% is in line compared to the rest of the industry. ASH outperforms 55.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.09%.
The last Return On Invested Capital (3.77%) for ASH is above the 3 year average (3.45%), which is a sign of increasing profitability.
| 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
ASH's Operating Margin of 10.96% is fine compared to the rest of the industry. ASH outperforms 61.45% of its industry peers.
ASH's Operating Margin has improved in the last couple of years.
ASH's Gross Margin of 33.00% is fine compared to the rest of the industry. ASH outperforms 65.06% of its industry peers.
In the last couple of years the Gross Margin of ASH has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASH is destroying value.
Compared to 1 year ago, ASH has less shares outstanding
Compared to 5 years ago, ASH has less shares outstanding
ASH has a worse debt/assets ratio than last year.
2.2 Solvency
ASH has an Altman-Z score of 2.04. 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.
With a Altman-Z score value of 2.04, ASH perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that 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 | 2.04 |
ROIC/WACC0.33
WACC11.52%
2.3 Liquidity
A Current Ratio of 2.85 indicates that ASH has no problem at all paying its short term obligations.
ASH's Current ratio of 2.85 is amongst the best of the industry. ASH outperforms 81.93% 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 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
ASH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.16%.
The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
The Revenue has grown by 76.88% in the past year. This is a very strong growth!
Measured over the past years, ASH shows a decrease in Revenue. The Revenue has been decreasing by -1.98% on average per year.
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
The Earnings Per Share is expected to grow by 17.84% on average over the next years. This is quite good.
ASH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y17.28%
EPS Next 2Y18.46%
EPS Next 3Y17.84%
EPS Next 5YN/A
Revenue Next Year2.22%
Revenue Next 2Y2.94%
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
With a Price/Earnings ratio of 17.53, ASH is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as ASH.
The average S&P500 Price/Earnings ratio is at 26.84. ASH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.94, the valuation of ASH can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as ASH.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, ASH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
63.86% 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 | 8.92 |
4.3 Compensation for Growth
ASH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.01
PEG (5Y)4.5
EPS Next 2Y18.46%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.48, ASH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, ASH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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
The earnings of ASH are negative and hence is the payout ratio. ASH will probably not be able to sustain this dividend level.
The dividend of ASH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-9%
EPS Next 2Y18.46%
EPS Next 3Y17.84%
59.41
-0.29 (-0.49%)
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 Cap2.72B
Revenue(TTM)1.82B
Net Income(TTM)-844.00M
Analysts77.65
Price Target64.39 (8.38%)
Short Float %9.72%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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)1.77%
PT rev (3m)-0.32%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-42.09%
EPS NY rev (1m)-8.45%
EPS NY rev (3m)-12.38%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 14.94 | ||
| P/S | 1.49 | ||
| P/FCF | N/A | ||
| P/OCF | 28.9 | ||
| P/B | 1.43 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)3.39
EY5.71%
EPS(NY)3.98
Fwd EY6.69%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)2.06
OCFY3.46%
SpS39.9
BVpS41.64
TBVpS13.91
PEG (NY)1.01
PEG (5Y)4.5
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 | 2.04 |
F-Score6
WACC11.52%
ROIC/WACC0.33
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 Y17.28%
EPS Next 2Y18.46%
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 Year2.22%
Revenue Next 2Y2.94%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y107.8%
EBIT growth 3Y-14.93%
EBIT growth 5Y3.26%
EBIT Next Year97.52%
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 3 / 10 to ASHLAND INC (ASH). This can be considered as Overvalued.
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 17.53 and the Price/Book (PB) ratio is 1.43.
What is the earnings growth outlook for ASHLAND INC?
The Earnings per Share (EPS) of ASHLAND INC (ASH) is expected to grow by 17.28% in the next year.