ASHLAND INC (ASH)

US0441861046 - Common Stock

97.37  -0.24 (-0.25%)

After market: 97.37 0 (0%)

Fundamental Rating

5

Overall ASH gets a fundamental rating of 5 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 decent growth rate and is not valued too expensively.



4

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.
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

Looking at the Return On Assets, with a value of 2.78%, ASH is in line with its industry, outperforming 55.29% of the companies in the same industry.
ASH has a Return On Equity of 5.34%. This is comparable to the rest of the industry: ASH outperforms 54.12% of its industry peers.
ASH has a worse Return On Invested Capital (2.85%) than 60.00% of its industry peers.
ASH had an Average Return On Invested Capital over the past 3 years of 4.04%. This is below the industry average of 7.53%.
Industry RankSector Rank
ROA 2.78%
ROE 5.34%
ROIC 2.85%
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

Looking at the Profit Margin, with a value of 7.62%, ASH is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
ASH's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.27%, ASH perfoms like the industry average, outperforming 44.71% of the companies in the same industry.
ASH's Operating Margin has declined in the last couple of years.
ASH's Gross Margin of 29.08% is in line compared to the rest of the industry. ASH outperforms 56.47% of its industry peers.
In the last couple of years the Gross Margin of ASH has declined.
Industry RankSector Rank
OM 8.27%
PM (TTM) 7.62%
GM 29.08%
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
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 2.54. 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.
ASH's Altman-Z score of 2.54 is fine compared to the rest of the industry. ASH outperforms 67.06% of its industry peers.
The Debt to FCF ratio of ASH is 4.33, which is a neutral value as it means it would take ASH, 4.33 years of fcf income to pay off all of its debts.
ASH's Debt to FCF ratio of 4.33 is fine compared to the rest of the industry. ASH outperforms 71.76% of its industry peers.
ASH has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
ASH has a better Debt to Equity ratio (0.44) than 63.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 4.33
Altman-Z 2.54
ROIC/WACC0.36
WACC7.92%

2.3 Liquidity

ASH has a Current Ratio of 3.30. This indicates that ASH is financially healthy and has no problem in meeting its short term obligations.
ASH has a better Current ratio (3.30) than 82.35% 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 better Quick ratio (1.88) than 75.29% of its industry peers.
Industry RankSector Rank
Current Ratio 3.3
Quick Ratio 1.88

4

3. Growth

3.1 Past

ASH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.52%.
Measured over the past 5 years, ASH shows a small growth in Earnings Per Share. The EPS has been growing by 2.45% on average per year.
Looking at the last year, ASH shows a very negative growth in Revenue. The Revenue has decreased by -11.06% in the last year.
The Revenue has been decreasing by -3.28% on average over the past years.
EPS 1Y (TTM)-39.52%
EPS 3Y13%
EPS 5Y2.45%
EPS growth Q2Q-53.61%
Revenue 1Y (TTM)-11.06%
Revenue growth 3Y2.81%
Revenue growth 5Y-3.28%
Revenue growth Q2Q-9.9%

3.2 Future

Based on estimates for the next years, ASH will show a very strong growth in Earnings Per Share. The EPS will grow by 20.30% on average per year.
The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y10.73%
EPS Next 2Y18.38%
EPS Next 3Y20.3%
EPS Next 5YN/A
Revenue Next Year-0.27%
Revenue Next 2Y2.58%
Revenue Next 3Y3.78%
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.
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.

4

4. Valuation

4.1 Price/Earnings Ratio

ASH is valuated quite expensively with a Price/Earnings ratio of 27.66.
ASH's Price/Earnings ratio is in line with the industry average.
ASH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
ASH is valuated rather expensively with a Price/Forward Earnings ratio of 17.20.
Based on the Price/Forward Earnings ratio, ASH is valued a bit cheaper than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, ASH is valued a bit cheaper.
Industry RankSector Rank
PE 27.66
Fwd PE 17.2

4.2 Price Multiples

ASH's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ASH is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.73
EV/EBITDA 13.22

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 20.30% in the coming years.
PEG (NY)2.58
PEG (5Y)11.3
EPS Next 2Y18.38%
EPS Next 3Y20.3%

6

5. Dividend

5.1 Amount

ASH has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
ASH's Dividend Yield is comparable with the industry average which is at 3.25.
ASH's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.6%

5.2 History

The dividend of ASH is nicely growing with an annual growth rate of 8.39%!
ASH has paid a dividend for at least 10 years, which is 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

47.85% of the earnings are spent on dividend by ASH. 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.
DP47.85%
EPS Next 2Y18.38%
EPS Next 3Y20.3%

ASHLAND INC

NYSE:ASH (3/28/2024, 8:04:00 PM)

After market: 97.37 0 (0%)

97.37

-0.24 (-0.25%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.88B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.6%
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 27.66
Fwd PE 17.2
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)2.58
PEG (5Y)11.3
Profitability
Industry RankSector Rank
ROA 2.78%
ROE 5.34%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.27%
PM (TTM) 7.62%
GM 29.08%
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 Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.3
Quick Ratio 1.88
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)
Growth
EPS 1Y (TTM)-39.52%
EPS 3Y13%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.06%
Revenue growth 3Y2.81%
Revenue growth 5Y
Revenue growth 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