ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
61.73 USD
-0.39 (-0.63%)
61.7254 USD
0 (-0.01%)
Overall ASH gets a fundamental rating of 4 out of 10. We evaluated ASH against 83 industry peers in the Chemicals industry. ASH has only an average score on both its financial health and profitability. 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 85.54% of the companies in the same industry.
- The Return On Equity of ASH (-44.33%) is worse than 79.52% of its industry peers.
- With a Return On Invested Capital value of 3.77%, ASH perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.11%.
- 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 61.45% of the companies in the same industry.
- 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
- ASH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ASH has been reduced compared to 1 year ago.
- Compared to 5 years ago, ASH has less shares outstanding
- ASH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.07 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ASH has a Altman-Z score (2.07) which is comparable to the rest of the industry.
- ASH has a Debt/Equity ratio of 0.73. This is a neutral value indicating ASH is somewhat dependend on debt financing.
- ASH's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. ASH outperforms 46.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.32
WACC11.7%
2.3 Liquidity
- A Current Ratio of 2.85 indicates that ASH has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.85, ASH belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
- A Quick Ratio of 1.51 indicates that ASH should not have too much problems paying its short term obligations.
- ASH has a better Quick ratio (1.51) than 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.
- ASH shows a strong growth in Revenue. In the last year, 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
- ASH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.88% yearly.
- The Revenue is expected to grow by 3.00% on average over the next years.
EPS Next Y17.38%
EPS Next 2Y18.07%
EPS Next 3Y17.88%
EPS Next 5YN/A
Revenue Next Year2.22%
Revenue Next 2Y2.89%
Revenue Next 3Y3%
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.
- 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
- The Price/Earnings ratio is 18.21, which indicates a rather expensive current valuation of ASH.
- The rest of the industry has a similar Price/Earnings ratio as ASH.
- The average S&P500 Price/Earnings ratio is at 28.39. ASH is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 15.51 indicates a correct valuation of ASH.
- 65.06% of the companies in the same industry are more expensive than ASH, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ASH to the average of the S&P500 Index (25.72), we can say ASH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
- ASH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ASH is cheaper than 65.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.17 |
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 17.88% in the coming years.
PEG (NY)1.05
PEG (5Y)4.67
EPS Next 2Y18.07%
EPS Next 3Y17.88%
5. Dividend
5.1 Amount
- ASH has a Yearly Dividend Yield of 2.63%. 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 2.23.
- Compared to an average S&P500 Dividend Yield of 1.82, ASH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
- On average, the dividend of ASH grows each year by 8.42%, 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)8.42%
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 2Y18.07%
EPS Next 3Y17.88%
ASHLAND INC / ASH FAQ
Can you provide the ChartMill fundamental rating for ASHLAND INC?
ChartMill assigns a fundamental rating of 4 / 10 to ASH.
What is the valuation status of ASHLAND INC (ASH) stock?
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.
Can you provide the PE and PB ratios for ASH stock?
The Price/Earnings (PE) ratio for ASHLAND INC (ASH) is 18.21 and the Price/Book (PB) ratio is 1.48.
Can you provide the financial health for ASH stock?
The financial health rating of ASHLAND INC (ASH) is 5 / 10.