ASHLAND INC (ASH)
US0441861046 - Common Stock
Taking everything into account, ASH scores 4 out of 10 in our fundamental rating. ASH was compared to 83 industry peers in the Chemicals industry. ASH has only an average score on both its financial health and profitability. ASH is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ASH had positive earnings in the past year.
ASH had a positive operating cash flow in the past year.
Of the past 5 years ASH 4 years were profitable.
Of the past 5 years ASH 4 years had a positive operating cash flow.
1.2 Ratios
ASH has a Return On Assets of 3.23%. This is in the better half of the industry: ASH outperforms 60.24% of its industry peers.
ASH has a Return On Equity (6.13%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 2.59%, ASH is in line with its industry, outperforming 40.96% of the companies in the same industry.
ASH had an Average Return On Invested Capital over the past 3 years of 4.04%. This is below the industry average of 6.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 6.13% | ||
| ROIC | 2.59% |
ROA(3y)7.08%
ROA(5y)4.16%
ROE(3y)14.18%
ROE(5y)7.99%
ROIC(3y)4.04%
ROIC(5y)3.3%
1.3 Margins
ASH's Profit Margin of 9.10% is fine compared to the rest of the industry. ASH outperforms 79.52% of its industry peers.
ASH's Profit Margin has improved in the last couple of years.
ASH's Operating Margin of 7.67% is in line compared to the rest of the industry. ASH outperforms 48.19% of its industry peers.
In the last couple of years the Operating Margin of ASH has declined.
ASH has a Gross Margin of 29.04%. This is comparable to the rest of the industry: ASH outperforms 53.01% of its industry peers.
In the last couple of years the Gross Margin of ASH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.67% | ||
| PM (TTM) | 9.1% | ||
| GM | 29.04% |
OM growth 3Y7.6%
OM growth 5Y-6.83%
PM growth 3YN/A
PM growth 5Y13.03%
GM growth 3Y0.86%
GM growth 5Y-3.54%
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.
The number of shares outstanding for ASH has been reduced compared to 5 years ago.
ASH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.50 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.50, ASH is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
ASH has a debt to FCF ratio of 4.30. This is a neutral value as ASH would need 4.30 years to pay back of all of its debts.
ASH has a better Debt to FCF ratio (4.30) than 73.49% of its industry peers.
ASH has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ASH (0.42) is better than 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.33
WACC7.78%
2.3 Liquidity
ASH has a Current Ratio of 3.15. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
ASH has a better Current ratio (3.15) than 77.11% of its industry peers.
ASH has a Quick Ratio of 1.94. 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 (1.94) is better than 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The earnings per share for ASH have decreased strongly by -41.57% in the last year.
The Earnings Per Share has been growing slightly by 2.45% on average over the past years.
ASH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.19%.
ASH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.28% yearly.
EPS 1Y (TTM)-41.57%
EPS 3Y13%
EPS 5Y2.45%
EPS Q2Q%-11.19%
Revenue 1Y (TTM)-12.19%
Revenue growth 3Y2.81%
Revenue growth 5Y-3.28%
Sales Q2Q%-4.64%
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 20.00% on average per year.
Based on estimates for the next years, ASH will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y14.5%
EPS Next 2Y19.4%
EPS Next 3Y20%
EPS Next 5YN/A
Revenue Next Year-0.63%
Revenue Next 2Y1.76%
Revenue Next 3Y2.94%
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
Based on the Price/Earnings ratio of 28.63, the valuation of ASH can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ASH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.41, ASH is valued at the same level.
A Price/Forward Earnings ratio of 16.70 indicates a correct valuation of ASH.
The rest of the industry has a similar Price/Forward Earnings ratio as ASH.
ASH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
ASH's Enterprise Value to EBITDA is on the same level as the industry average.
ASH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ASH is cheaper than 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.61 | ||
| EV/EBITDA | 12.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ASH does not grow enough to justify the current Price/Earnings ratio.
ASH's earnings are expected to grow with 20.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)11.7
EPS Next 2Y19.4%
EPS Next 3Y20%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, ASH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.07, ASH has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, ASH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of ASH is nicely growing with an annual growth rate of 8.39%!
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)8.39%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
ASH pays out 41.15% of its income as dividend. This is a bit on the high side, but may be sustainable.
ASH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.15%
EPS Next 2Y19.4%
EPS Next 3Y20%
ASHLAND INC
NYSE:ASH (7/26/2024, 7:17:15 PM)
After market: 96.19 0 (0%)96.19
+1.67 (+1.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 16.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.97
PEG (5Y)11.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 6.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.67% | ||
| PM (TTM) | 9.1% | ||
| GM | 29.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.15 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-41.57%
EPS 3Y13%
EPS 5Y
EPS Q2Q%
EPS Next Y14.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.19%
Revenue growth 3Y2.81%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y