ASHLAND INC (ASH)

US0441861046 - Common Stock

96.86  +0.35 (+0.36%)

After market: 96.86 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ASH. ASH was compared to 84 industry peers in the Chemicals industry. ASH has an average financial health and profitability rating. ASH has a expensive valuation and it also scores bad on growth.



4

1. Profitability

1.1 Basic Checks

In the past year ASH was profitable.
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 better Return On Assets (3.23%) than 61.90% of its industry peers.
Looking at the Return On Equity, with a value of 6.13%, ASH is in line with its industry, outperforming 59.52% of the companies in the same industry.
The Return On Invested Capital of ASH (2.59%) 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 6.70%.
Industry RankSector 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 has a Profit Margin of 9.10%. This is amongst the best in the industry. ASH outperforms 80.95% of its industry peers.
In the last couple of years the Profit Margin of ASH has grown nicely.
ASH has a Operating Margin (7.67%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ASH has declined.
With a Gross Margin value of 29.04%, ASH perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
ASH's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

6

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
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

ASH has an Altman-Z score of 2.52. 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.
Looking at the Altman-Z score, with a value of 2.52, ASH is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of ASH is 4.30, which is a neutral value as it means it would take ASH, 4.30 years of fcf income to pay off all of its debts.
ASH has a Debt to FCF ratio of 4.30. This is in the better half of the industry: ASH outperforms 72.62% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that ASH is not too dependend on debt financing.
ASH has a Debt to Equity ratio of 0.42. This is in the better half of the industry: ASH outperforms 64.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 4.3
Altman-Z 2.52
ROIC/WACC0.33
WACC7.77%

2.3 Liquidity

A Current Ratio of 3.15 indicates that ASH has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.15, ASH is doing good in the industry, outperforming 76.19% of the companies in the same industry.
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.
ASH's Quick ratio of 1.94 is fine compared to the rest of the industry. ASH outperforms 73.81% of its industry peers.
Industry RankSector Rank
Current Ratio 3.15
Quick Ratio 1.94

3

3. Growth

3.1 Past

The earnings per share for ASH have decreased strongly by -41.57% in the last year.
ASH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.45% yearly.
Looking at the last year, ASH shows a very negative growth in Revenue. The Revenue has decreased by -12.19% in the last year.
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

The Earnings Per Share is expected to grow by 20.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.94% on average over the next years.
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

The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 28.83, which means the current valuation is very expensive for ASH.
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 28.63, ASH is valued at the same level.
With a Price/Forward Earnings ratio of 16.82, ASH is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as ASH.
When comparing the Price/Forward Earnings ratio of ASH to the average of the S&P500 Index (20.22), we can say ASH is valued inline with the index average.
Industry RankSector Rank
PE 28.83
Fwd PE 16.82

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ASH.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASH indicates a somewhat cheap valuation: ASH is cheaper than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 15.71
EV/EBITDA 12.87

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ASH's earnings are expected to grow with 20.00% in the coming years.
PEG (NY)1.99
PEG (5Y)11.78
EPS Next 2Y19.4%
EPS Next 3Y20%

6

5. Dividend

5.1 Amount

ASH has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 3.18, ASH pays a bit more dividend than its industry peers.
ASH's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
Industry RankSector Rank
Dividend Yield 1.68%

5.2 History

On average, the dividend of ASH grows each year by 8.39%, 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 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.
The dividend of ASH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.15%
EPS Next 2Y19.4%
EPS Next 3Y20%

ASHLAND INC

NYSE:ASH (6/21/2024, 7:04:00 PM)

After market: 96.86 0 (0%)

96.86

+0.35 (+0.36%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.86B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE 28.83
Fwd PE 16.82
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)1.99
PEG (5Y)11.78
Profitability
Industry RankSector 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 RankSector 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