ASHLAND INC (ASH)
US0441861046 - Common Stock
Overall ASH gets a fundamental rating of 5 out of 10. We evaluated ASH against 86 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.
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
The Return On Assets of ASH (3.95%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.56%, ASH is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of ASH (3.89%) is comparable to the rest of the industry.
ASH had an Average Return On Invested Capital over the past 3 years of 4.01%. This is below the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 7.56% | ||
| ROIC | 3.89% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.01%
ROIC(5y)3.91%
1.3 Margins
ASH's Profit Margin of 10.32% is fine compared to the rest of the industry. ASH outperforms 74.42% of its industry peers.
ASH's Profit Margin has improved in the last couple of years.
ASH's Operating Margin of 10.75% is in line compared to the rest of the industry. ASH outperforms 51.16% of its industry peers.
ASH's Operating Margin has improved in the last couple of years.
ASH has a better Gross Margin (32.52%) than 65.12% of its industry peers.
In the last couple of years the Gross Margin of ASH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.75% | ||
| PM | 10.32% | ||
| GM | 32.52% |
OM growth 3Y11.97%
OM growth 5Y6.15%
PM growth 3Y24.16%
PM growth 5Y289.39%
GM growth 3Y4.61%
GM growth 5Y1.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ASH is destroying value.
ASH has less shares outstanding than it did 1 year ago.
ASH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ASH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.46 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASH's Altman-Z score of 2.46 is fine compared to the rest of the industry. ASH outperforms 62.79% of its industry peers.
The Debt to FCF ratio of ASH is 27.67, which is on the high side as it means it would take ASH, 27.67 years of fcf income to pay off all of its debts.
ASH has a Debt to FCF ratio (27.67) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.42 indicates that ASH is not too dependend on debt financing.
The Debt to Equity ratio of ASH (0.42) is better than 61.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 27.67 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.83
WACC8.85%
2.3 Liquidity
ASH has a Current Ratio of 3.53. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
ASH has a Current ratio of 3.53. This is in the better half of the industry: ASH outperforms 77.91% of its industry peers.
ASH has a Quick Ratio of 1.88. 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 1.88. This is in the better half of the industry: ASH outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
ASH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.29%.
ASH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.04% yearly.
Looking at the last year, ASH shows a quite strong growth in Revenue. The Revenue has grown by 10.60% in the last year.
The Revenue has been growing slightly by 0.70% on average over the past years.
EPS 1Y-7.29%
EPS 3Y31.67%
EPS 5Y5.04%
EPS growth Q2Q-34.92%
Revenue growth 1Y10.6%
Revenue growth 3Y-1.38%
Revenue growth 5Y0.7%
Revenue growth Q2Q-15.22%
3.2 Future
The Earnings Per Share is expected to grow by 8.80% on average over the next years. This is quite good.
Based on estimates for the next years, ASH will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
EPS Next Y-18%
EPS Next 2Y0.82%
EPS Next 3Y7.21%
EPS Next 5Y8.8%
Revenue Next Year-7.37%
Revenue Next 2Y-1.04%
Revenue Next 3Y1.5%
Revenue Next 5Y3.82%
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 16.34, ASH is valued correctly.
ASH's Price/Earnings is on the same level as the industry average.
ASH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.28, 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 19.01. ASH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
ASH's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASH indicates a slightly more expensive valuation: ASH is more expensive than 61.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 88.76 | ||
| EV/EBITDA | 10.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.24
EPS Next 2Y0.82%
EPS Next 3Y7.21%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 1.83%.
ASH's Dividend Yield is comparable with the industry average which is at 3.63.
Compared to the average S&P500 Dividend Yield of 2.58, ASH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
The dividend of ASH has a limited annual growth rate of 0.31%.
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)0.31%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
31.09% of the earnings are spent on dividend by ASH. This is a low number and sustainable payout ratio.
ASH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.09%
EPS Next 2Y0.82%
EPS Next 3Y7.21%
ASHLAND INC
NYSE:ASH (9/22/2023, 7:04:00 PM)
After market: 83.15 0 (0%)83.15
-0.83 (-0.99%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)07-25 2023-07-25/amc
Earnings (Next)11-06 2023-11-06/amc
Inst Owners91.5%
Inst Owner Change-1.85%
Ins Owners0.3%
Ins Owner Change2.14%
Market Cap4.26B
Analysts75
Price Target105.8 (27.24%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Dividend Growth(5Y)0.31%
DP31.09%
Div Incr Years13
Div Non Decr Years13
Ex-Date08-31 2023-08-31 (0.385)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.93%
Min EPS beat(2)-5.63%
Max EPS beat(2)-4.23%
EPS beat(4)1
Avg EPS beat(4)-2.65%
Min EPS beat(4)-5.63%
Max EPS beat(4)2.25%
Revenue beat(2)2
Avg Revenue beat(2)97057%
Min Revenue beat(2)95289.5%
Max Revenue beat(2)98824.6%
Revenue beat(4)4
Avg Revenue beat(4)97780.2%
Min Revenue beat(4)95289.5%
Max Revenue beat(4)99582.1%
PT rev (1m)0%
PT rev (3m)-11.5%
EPS NQ rev (1m)-3.34%
EPS NQ rev (3m)-45.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.07%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.28 | ||
| P/S | 1.85 | ||
| P/FCF | 88.76 | ||
| P/OCF | 21.85 | ||
| P/B | 1.35 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 10.74 |
EPS(TTM)5.09
EY6.12%
EPS(NY)5.82
Fwd EY7%
FCF(TTM)0.94
FCFY1.13%
OCF(TTM)3.81
OCFY4.58%
SpS45
BVpS61.45
TBVpS16.59
PEG (NY)N/A
PEG (5Y)3.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 7.56% | ||
| ROCE | 4.43% | ||
| ROIC | 3.89% | ||
| ROICexc | 4.15% | ||
| ROICexgc | 7.39% | ||
| OM | 10.75% | ||
| PM | 10.32% | ||
| GM | 32.52% | ||
| FCFM | 2.08% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.01%
ROIC(5y)3.91%
ROICexc(3y)4.36%
ROICexc(5y)4.17%
ROICexgc(3y)8.22%
ROICexgc(5y)8.13%
ROCE(3y)4.57%
ROCE(5y)4.46%
ROICexcg growth 3Y14.93%
ROICexcg growth 5Y12.4%
ROICexc growth 3Y19.96%
ROICexc growth 5Y15.27%
OM growth 3Y11.97%
OM growth 5Y6.15%
PM growth 3Y24.16%
PM growth 5Y289.39%
GM growth 3Y4.61%
GM growth 5Y1.8%
F-Score5
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 27.67 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 61.25% | ||
| Cap/Sales | 6.37% | ||
| Profit Quality | 20.17% | ||
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 2.46 |
F-Score5
WACC8.85%
ROIC/WACC0.83
Cap/Depr(3y)48.6%
Cap/Depr(5y)51.15%
Cap/Sales(3y)5.21%
Cap/Sales(5y)5.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y-7.29%
EPS 3Y31.67%
EPS 5Y5.04%
EPS growth Q2Q-34.92%
EPS Next Y-18%
EPS Next 2Y0.82%
EPS Next 3Y7.21%
EPS Next 5Y8.8%
Revenue growth 1Y10.6%
Revenue growth 3Y-1.38%
Revenue growth 5Y0.7%
Revenue growth Q2Q-15.22%
Revenue Next Year-7.37%
Revenue Next 2Y-1.04%
Revenue Next 3Y1.5%
Revenue Next 5Y3.82%
EBIT growth 1Y-10.14%
EBIT growth 3Y10.43%
EBIT growth 5Y6.89%
EBIT Next Year45.41%
EBIT Next 3Y22.4%
EBIT Next 5YN/A
FCF growth 1Y-88.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-64.29%
OCF growth 3YN/A
OCF growth 5YN/A