ASHLAND INC (ASH) Stock Fundamental Analysis
NYSE:ASH - New York Stock Exchange, Inc. - US0441861046 - Common Stock - Currency: USD
ASH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While ASH seems to be doing ok healthwise, there are quite some concerns on its profitability. ASH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ASH was profitable.
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
With a Return On Assets value of -2.14%, ASH is not doing good in the industry: 65.88% of the companies in the same industry are doing better.
With a Return On Equity value of -4.38%, ASH is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
ASH's Return On Invested Capital of 3.68% is in line compared to the rest of the industry. ASH outperforms 41.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASH is below the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.14% | ||
| ROE | -4.38% | ||
| ROIC | 3.68% |
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
ASH's Profit Margin has declined in the last couple of years.
ASH has a better Operating Margin (11.38%) than 61.18% of its industry peers.
In the last couple of years the Operating Margin of ASH has grown nicely.
With a decent Gross Margin value of 33.28%, ASH is doing good in the industry, outperforming 64.71% of the companies in the same industry.
ASH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.38% | ||
| PM (TTM) | N/A | ||
| GM | 33.28% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASH 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
An Altman-Z score of 2.00 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASH's Altman-Z score of 2.00 is in line compared to the rest of the industry. ASH outperforms 52.94% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that ASH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, ASH is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2 |
ROIC/WACC0.45
WACC8.15%
2.3 Liquidity
ASH has a Current Ratio of 2.32. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.32, ASH is doing good in the industry, outperforming 67.06% of the companies in the same industry.
ASH has a Quick Ratio of 1.15. 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 (1.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.64% over the past year.
Measured over the past years, ASH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.23% on average per year.
ASH shows a decrease in Revenue. In the last year, the revenue decreased by -7.63%.
ASH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.33% yearly.
EPS 1Y (TTM)19.64%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-22.05%
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-16.7%
3.2 Future
Based on estimates for the next years, ASH will show a small growth in Earnings Per Share. The EPS will grow by 7.19% on average per year.
Based on estimates for the next years, ASH will show a decrease in Revenue. The Revenue will decrease by -2.69% on average per year.
EPS Next Y-11.12%
EPS Next 2Y3.83%
EPS Next 3Y7.19%
EPS Next 5YN/A
Revenue Next Year-12.54%
Revenue Next 2Y-5.41%
Revenue Next 3Y-2.69%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.26, ASH is valued correctly.
77.65% of the companies in the same industry are more expensive than ASH, based on the Price/Earnings ratio.
ASH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
ASH is valuated reasonably with a Price/Forward Earnings ratio of 10.23.
Based on the Price/Forward Earnings ratio, ASH is valued a bit cheaper than 72.94% of the companies in the same industry.
ASH is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.23 |
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 | 7.22 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y3.83%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 3.21%.
The stock price of ASH dropped by -24.13% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ASH's Dividend Yield is a higher than the industry average which is at 3.70.
ASH's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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 2Y3.83%
EPS Next 3Y7.19%
49.3
-0.74 (-1.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.23%
Inst Owner Change-3.21%
Ins Owners1%
Ins Owner Change2.21%
Market Cap2.33B
Analysts80
Price Target69.23 (40.43%)
Short Float %2.87%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend1.59
Dividend Growth(5Y)8.69%
DPN/A
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.99%
Min EPS beat(2)-11.11%
Max EPS beat(2)55.09%
EPS beat(4)2
Avg EPS beat(4)10.8%
Min EPS beat(4)-11.11%
Max EPS beat(4)55.09%
EPS beat(8)4
Avg EPS beat(8)17.83%
EPS beat(12)6
Avg EPS beat(12)12.38%
EPS beat(16)7
Avg EPS beat(16)9.07%
Revenue beat(2)0
Avg Revenue beat(2)-6.08%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-5.65%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.35%
Revenue beat(12)1
Avg Revenue beat(12)-2.65%
Revenue beat(16)2
Avg Revenue beat(16)-6.02%
PT rev (1m)-16.46%
PT rev (3m)-25.5%
EPS NQ rev (1m)-11.31%
EPS NQ rev (3m)-12.22%
EPS NY rev (1m)-8.53%
EPS NY rev (3m)-9.4%
Revenue NQ rev (1m)-4.9%
Revenue NQ rev (3m)-5.23%
Revenue NY rev (1m)-4.2%
Revenue NY rev (3m)-4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.23 | ||
| P/S | 1.19 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.91 | ||
| P/tB | 3.73 | ||
| EV/EBITDA | 7.22 |
EPS(TTM)4.02
EY8.15%
EPS(NY)4.82
Fwd EY9.78%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS41.33
BVpS54.24
TBVpS13.2
PEG (NY)N/A
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.14% | ||
| ROE | -4.38% | ||
| ROCE | 4.65% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.81% | ||
| ROICexgc | 6.58% | ||
| OM | 11.38% | ||
| PM (TTM) | N/A | ||
| GM | 33.28% | ||
| 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2 |
F-ScoreN/A
WACC8.15%
ROIC/WACC0.45
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)19.64%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-22.05%
EPS Next Y-11.12%
EPS Next 2Y3.83%
EPS Next 3Y7.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.63%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-16.7%
Revenue Next Year-12.54%
Revenue Next 2Y-5.41%
Revenue Next 3Y-2.69%
Revenue Next 5YN/A
EBIT growth 1Y37.04%
EBIT growth 3Y-1.63%
EBIT growth 5Y8.86%
EBIT Next Year70.43%
EBIT Next 3Y26.51%
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%