ASHLAND INC (ASH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASH - US0441861046 - Common Stock
59.84 USD
+2.24 (+3.89%)
59.68 USD
-0.16 (-0.27%)
We assign a fundamental rating of 4 out of 10 to ASH. ASH was compared to 82 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.
ASH had a positive operating cash flow in the past year.
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
With a Return On Assets value of -18.30%, ASH is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
The Return On Equity of ASH (-44.33%) is worse than 79.27% of its industry peers.
ASH has a Return On Invested Capital (3.77%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 6.05%.
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 62.20% of its industry peers.
In the last couple of years the Operating Margin of ASH has grown nicely.
Looking at the Gross Margin, with a value of 33.00%, ASH is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
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
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.
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 2.05 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASH has a Altman-Z score (2.05) which is comparable to the rest of the industry.
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 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACC0.47
WACC8.04%
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.
With an excellent Current ratio value of 2.85, ASH belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
ASH has a Quick Ratio of 1.51. 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 of 1.51. This is in the better half of the industry: ASH outperforms 60.98% 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.
Measured over the past 5 years, ASH shows a small growth in Earnings Per Share. The EPS has been growing by 3.90% on average per year.
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 17.84% yearly.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y18.24%
EPS Next 2Y19.27%
EPS Next 3Y17.84%
EPS Next 5YN/A
Revenue Next Year2.17%
Revenue Next 2Y2.97%
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
The Price/Earnings ratio is 17.65, 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 26.59. ASH is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.93, which indicates a correct valuation of ASH.
ASH's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.80. ASH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASH is valued a bit cheaper than 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.94 |
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 17.84% in the coming years.
PEG (NY)0.97
PEG (5Y)4.53
EPS Next 2Y19.27%
EPS Next 3Y17.84%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 2.85%.
Compared to an average industry Dividend Yield of 3.98, ASH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, ASH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
The dividend of ASH is nicely growing with an annual growth rate of 8.42%!
ASH has paid a dividend for at least 10 years, which is 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 2Y19.27%
EPS Next 3Y17.84%
59.84
+2.24 (+3.89%)
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 Cap2.74B
Revenue(TTM)1.82B
Net Income(TTM)-844.00M
Analysts77.65
Price Target62.35 (4.19%)
Short Float %7.61%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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)-1.93%
PT rev (3m)-3.92%
EPS NQ rev (1m)-17.49%
EPS NQ rev (3m)-37.82%
EPS NY rev (1m)-7.7%
EPS NY rev (3m)-11.28%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 14.93 | ||
| P/S | 1.5 | ||
| P/FCF | N/A | ||
| P/OCF | 29.11 | ||
| P/B | 1.44 | ||
| P/tB | 4.3 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)3.39
EY5.67%
EPS(NY)4.01
Fwd EY6.7%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)2.06
OCFY3.44%
SpS39.9
BVpS41.64
TBVpS13.91
PEG (NY)0.97
PEG (5Y)4.53
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 | 2.05 |
F-Score6
WACC8.04%
ROIC/WACC0.47
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 Y18.24%
EPS Next 2Y19.27%
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 Year2.17%
Revenue Next 2Y2.97%
Revenue Next 3Y2.98%
Revenue Next 5YN/A
EBIT growth 1Y107.8%
EBIT growth 3Y-14.93%
EBIT growth 5Y3.26%
EBIT Next Year97.84%
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 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.
What is the valuation of ASHLAND INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ASHLAND INC (ASH) is 17.65 and the Price/Book (PB) ratio is 1.44.
What is the earnings growth outlook for ASHLAND INC?
The Earnings per Share (EPS) of ASHLAND INC (ASH) is expected to grow by 18.24% in the next year.