ASHLAND INC (ASH) Stock Fundamental Analysis
NYSE:ASH - New York Stock Exchange, Inc. - US0441861046 - Common Stock - Currency: USD
Taking everything into account, ASH scores 4 out of 10 in our fundamental rating. ASH was compared to 85 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.
1. Profitability
1.1 Basic Checks
In the past year ASH was profitable.
ASH had positive earnings in 4 of the past 5 years.
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 -0.44%, ASH is doing worse than 67.47% of the companies in the same industry.
The Return On Equity of ASH (-0.89%) is worse than 63.86% of its industry peers.
ASH's Return On Invested Capital of 3.71% is in line compared to the rest of the industry. ASH outperforms 44.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.58%.
The 3 year average ROIC (3.69%) for ASH is below the current ROIC(3.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -0.89% | ||
| ROIC | 3.71% |
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
In the last couple of years the Profit Margin of ASH has declined.
ASH's Operating Margin of 11.05% is fine compared to the rest of the industry. ASH outperforms 61.45% of its industry peers.
In the last couple of years the Operating Margin of ASH has grown nicely.
ASH's Gross Margin of 32.80% is fine compared to the rest of the industry. ASH outperforms 62.65% of its industry peers.
ASH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.05% | ||
| PM (TTM) | N/A | ||
| GM | 32.8% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASH is destroying value.
ASH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ASH has been reduced compared to 5 years ago.
Compared to 1 year ago, ASH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASH has a Altman-Z score of 2.21. This is in the better half of the industry: ASH outperforms 61.45% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that ASH is somewhat dependend on debt financing.
ASH's Debt to Equity ratio of 0.51 is fine compared to the rest of the industry. ASH outperforms 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.21 |
ROIC/WACC0.44
WACC8.45%
2.3 Liquidity
ASH has a Current Ratio of 2.52. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
ASH has a better Current ratio (2.52) than 63.86% of its industry peers.
ASH has a Quick Ratio of 1.27. This is a normal value and indicates that ASH is financially healthy and should not expect problems in meeting its short term obligations.
ASH has a Quick ratio (1.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.16% over the past year.
The Earnings Per Share has been growing by 12.23% on average over the past years. This is quite good.
ASH shows a decrease in Revenue. In the last year, the revenue decreased by -4.35%.
Measured over the past years, ASH shows a decrease in Revenue. The Revenue has been decreasing by -0.33% on average per year.
EPS 1Y (TTM)22.16%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-37.78%
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-14.38%
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 13.16% on average per year.
Based on estimates for the next years, ASH will show a decrease in Revenue. The Revenue will decrease by -0.38% on average per year.
EPS Next Y-0.33%
EPS Next 2Y10.1%
EPS Next 3Y13.16%
EPS Next 5YN/A
Revenue Next Year-8.23%
Revenue Next 2Y-2.77%
Revenue Next 3Y-0.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.05, ASH is valued correctly.
Based on the Price/Earnings ratio, ASH is valued a bit cheaper than 74.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, ASH is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.95, which indicates a very decent valuation of ASH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASH indicates a somewhat cheap valuation: ASH is cheaper than 75.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, ASH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 11.95 |
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 74.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
ASH's earnings are expected to grow with 13.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.23
EPS Next 2Y10.1%
EPS Next 3Y13.16%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.66%.
In the last 3 months the price of ASH has falen by -20.41%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ASH's Dividend Yield is a higher than the industry average which is at 3.24.
ASH's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
On average, the dividend of ASH grows each year by 8.69%, which is quite nice.
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)8.69%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
ASH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DPN/A
EPS Next 2Y10.1%
EPS Next 3Y13.16%
ASHLAND INC
NYSE:ASH (2/5/2025, 12:53:59 PM)
64.73
+0.29 (+0.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners95.93%
Inst Owner Change0.77%
Ins Owners0.53%
Ins Owner Change4.46%
Market Cap3.05B
Analysts80
Price Target92.93 (43.57%)
Short Float %2.94%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend1.59
Dividend Growth(5Y)8.69%
DPN/A
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)26.19%
Min EPS beat(2)-2.71%
Max EPS beat(2)55.09%
EPS beat(4)3
Avg EPS beat(4)16.04%
Min EPS beat(4)-2.71%
Max EPS beat(4)55.09%
EPS beat(8)4
Avg EPS beat(8)18.52%
EPS beat(12)7
Avg EPS beat(12)14.06%
EPS beat(16)7
Avg EPS beat(16)8.53%
Revenue beat(2)0
Avg Revenue beat(2)-3.95%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-3.22%
Revenue beat(12)2
Avg Revenue beat(12)-2.09%
Revenue beat(16)2
Avg Revenue beat(16)-6.96%
PT rev (1m)-2.26%
PT rev (3m)-10.97%
EPS NQ rev (1m)-4.21%
EPS NQ rev (3m)-17.61%
EPS NY rev (1m)-1.48%
EPS NY rev (3m)-15.7%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-11.51%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-7.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 11.95 | ||
| P/S | 1.49 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.18 | ||
| P/tB | 4.53 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)4.3
EY6.64%
EPS(NY)5.42
Fwd EY8.37%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS43.37
BVpS54.94
TBVpS14.29
PEG (NY)N/A
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -0.89% | ||
| ROCE | 4.7% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 6.69% | ||
| OM | 11.05% | ||
| PM (TTM) | N/A | ||
| GM | 32.8% | ||
| FCFM | N/A |
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-ScoreN/A
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.21 |
F-ScoreN/A
WACC8.45%
ROIC/WACC0.44
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)22.16%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-37.78%
EPS Next Y-0.33%
EPS Next 2Y10.1%
EPS Next 3Y13.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-14.38%
Revenue Next Year-8.23%
Revenue Next 2Y-2.77%
Revenue Next 3Y-0.38%
Revenue Next 5YN/A
EBIT growth 1Y27.68%
EBIT growth 3Y-1.63%
EBIT growth 5Y8.86%
EBIT Next Year72.58%
EBIT Next 3Y27.03%
EBIT Next 5YN/A
FCF growth 1Y275.34%
FCF growth 3Y-15.55%
FCF growth 5Y23.86%
OCF growth 1Y69.14%
OCF growth 3Y-9.8%
OCF growth 5Y11.27%