ASHLAND INC (ASH) Stock Fundamental Analysis
NYSE:ASH - New York Stock Exchange, Inc. - US0441861046 - Common Stock - Currency: USD
Overall ASH gets a fundamental rating of 4 out of 10. We evaluated ASH against 85 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ASH had positive earnings in the past year.
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
The Return On Assets of ASH (-18.61%) is worse than 81.18% of its industry peers.
ASH's Return On Equity of -45.53% is on the low side compared to the rest of the industry. ASH is outperformed by 81.18% of its industry peers.
The Return On Invested Capital of ASH (3.82%) 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 6.77%.
The last Return On Invested Capital (3.82%) for ASH is above the 3 year average (3.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.61% | ||
| ROE | -45.53% | ||
| ROIC | 3.82% |
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.
Looking at the Operating Margin, with a value of 10.86%, ASH is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
In the last couple of years the Operating Margin of ASH has grown nicely.
ASH has a Gross Margin of 33.01%. This is in the better half of the industry: ASH outperforms 63.53% of its industry peers.
ASH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | N/A | ||
| GM | 33.01% |
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
ASH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ASH has less shares outstanding
ASH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ASH has a worse debt to assets ratio.
2.2 Solvency
ASH has an Altman-Z score of 1.93. 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.
The Altman-Z score of ASH (1.93) 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 48.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.48
WACC8.03%
2.3 Liquidity
ASH has a Current Ratio of 2.68. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.68, ASH is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
ASH has a Quick Ratio of 1.33. This is a normal value and indicates that ASH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ASH (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
ASH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.38%.
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 for ASH has decreased by -11.38% in the past year. This is quite bad
ASH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.33% yearly.
EPS 1Y (TTM)-1.38%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-30.2%
Revenue 1Y (TTM)-11.38%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-14.89%
3.2 Future
The Earnings Per Share is expected to grow by 6.98% on average over the next years.
Based on estimates for the next years, ASH will show a decrease in Revenue. The Revenue will decrease by -2.66% on average per year.
EPS Next Y-13.81%
EPS Next 2Y3.41%
EPS Next 3Y6.98%
EPS Next 5YN/A
Revenue Next Year-12.39%
Revenue Next 2Y-5.28%
Revenue Next 3Y-2.66%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ASH is valuated correctly with a Price/Earnings ratio of 14.22.
70.59% of the companies in the same industry are more expensive than ASH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ASH is valued a bit cheaper.
A Price/Forward Earnings ratio of 10.62 indicates a reasonable valuation of ASH.
71.76% of the companies in the same industry are more expensive than ASH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.42. ASH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASH is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y3.41%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 3.29%. 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 3.75.
Compared to an average S&P500 Dividend Yield of 2.40, ASH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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 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
The dividend of ASH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y3.41%
EPS Next 3Y6.98%
50.76
+0.26 (+0.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners92.19%
Inst Owner Change-0.12%
Ins Owners0.53%
Ins Owner Change0.46%
Market Cap2.32B
Analysts78.67
Price Target69.49 (36.9%)
Short Float %3.13%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend1.59
Dividend Growth(5Y)8.69%
DPN/A
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.65%
Min EPS beat(2)-16.19%
Max EPS beat(2)-11.11%
EPS beat(4)1
Avg EPS beat(4)6.27%
Min EPS beat(4)-16.19%
Max EPS beat(4)55.09%
EPS beat(8)4
Avg EPS beat(8)16.33%
EPS beat(12)5
Avg EPS beat(12)10.01%
EPS beat(16)7
Avg EPS beat(16)8.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.71%
Min Revenue beat(2)-5.65%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-4.33%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.68%
Revenue beat(12)0
Avg Revenue beat(12)-3.16%
Revenue beat(16)2
Avg Revenue beat(16)-5.33%
PT rev (1m)-0.18%
PT rev (3m)-8.09%
EPS NQ rev (1m)-3.32%
EPS NQ rev (3m)-17.41%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-11.3%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-5.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 10.62 | ||
| P/S | 1.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.23 | ||
| P/tB | 3.83 | ||
| EV/EBITDA | 7.33 |
EPS(TTM)3.57
EY7.03%
EPS(NY)4.78
Fwd EY9.42%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS40.91
BVpS41.34
TBVpS13.26
PEG (NY)N/A
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.61% | ||
| ROE | -45.53% | ||
| ROCE | 4.83% | ||
| ROIC | 3.82% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 5.92% | ||
| OM | 10.86% | ||
| PM (TTM) | N/A | ||
| GM | 33.01% | ||
| 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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.93 |
F-ScoreN/A
WACC8.03%
ROIC/WACC0.48
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)-1.38%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-30.2%
EPS Next Y-13.81%
EPS Next 2Y3.41%
EPS Next 3Y6.98%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.38%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-14.89%
Revenue Next Year-12.39%
Revenue Next 2Y-5.28%
Revenue Next 3Y-2.66%
Revenue Next 5YN/A
EBIT growth 1Y14.69%
EBIT growth 3Y-1.63%
EBIT growth 5Y8.86%
EBIT Next Year59.92%
EBIT Next 3Y23.95%
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%