ASHLAND INC (ASH) Stock Fundamental Analysis
USA - NYSE:ASH - US0441861046 - Common Stock
50.05 USD
-0.62 (-1.22%)
50.05 USD
0 (0%)
ASH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ASH was profitable.
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 (-18.61%) is worse than 84.15% of its industry peers.
With a Return On Equity value of -45.53%, ASH is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
ASH's Return On Invested Capital of 3.82% is in line compared to the rest of the industry. ASH outperforms 47.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASH is below the industry average of 6.30%.
The 3 year average ROIC (3.69%) for ASH is below the current ROIC(3.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.61% | ||
| ROE | -45.53% | ||
| ROIC | 3.82% |
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
In the last couple of years the Profit Margin of ASH has declined.
ASH has a better Operating Margin (10.86%) than 60.98% of its industry peers.
In the last couple of years the Operating Margin of ASH has grown nicely.
ASH has a better Gross Margin (33.01%) than 64.63% of its industry peers.
In the last couple of years the Gross Margin of ASH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | N/A | ||
| GM | 33.01% |
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
ASH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ASH has less shares outstanding
ASH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ASH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.93 indicates that ASH is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASH has a Altman-Z score of 1.93. This is comparable to the rest of the industry: ASH outperforms 51.22% of its industry peers.
ASH has a Debt/Equity ratio of 0.73. This is a neutral value indicating ASH is somewhat dependend on debt financing.
ASH has a Debt to Equity ratio (0.73) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.49
WACC7.8%
2.3 Liquidity
A Current Ratio of 2.68 indicates that ASH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.68, ASH is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
ASH has a Quick Ratio of 1.33. This is a normal value and indicates that ASH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.33, ASH is in line with its industry, outperforming 52.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for ASH have decreased by -1.38% in the last year.
ASH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.23% yearly.
ASH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.38%.
Measured over the past years, ASH shows a decrease in Revenue. The Revenue has been decreasing by -0.33% on average per year.
EPS 1Y (TTM)-1.38%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-30.2%
Revenue 1Y (TTM)-11.38%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-14.89%
3.2 Future
ASH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.57% yearly.
The Revenue is expected to decrease by -1.40% on average over the next years.
EPS Next Y-19.73%
EPS Next 2Y-1.19%
EPS Next 3Y4.67%
EPS Next 5Y8.57%
Revenue Next Year-13.75%
Revenue Next 2Y-6.15%
Revenue Next 3Y-2.97%
Revenue Next 5Y-1.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ASH is valuated correctly with a Price/Earnings ratio of 14.02.
Based on the Price/Earnings ratio, ASH is valued a bit cheaper than 71.95% of the companies in the same industry.
ASH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
ASH is valuated reasonably with a Price/Forward Earnings ratio of 11.47.
ASH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ASH is cheaper than 74.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, ASH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASH is valued a bit cheaper than 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.15
EPS Next 2Y-1.19%
EPS Next 3Y4.67%
5. Dividend
5.1 Amount
ASH has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 3.69, ASH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, ASH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of ASH is nicely growing with an annual growth rate of 8.69%!
ASH has paid a dividend for at least 10 years, which is 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 2Y-1.19%
EPS Next 3Y4.67%
50.05
-0.62 (-1.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change-3.76%
Ins Owners0.53%
Ins Owner Change0.46%
Market Cap2.29B
Revenue(TTM)1.87B
Net Income(TTM)-860000000
Analysts77.65
Price Target64.8 (29.47%)
Short Float %4.47%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1.59
Dividend Growth(5Y)8.69%
DPN/A
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.65%
Min EPS beat(2)-16.19%
Max EPS beat(2)-11.11%
EPS beat(4)1
Avg EPS beat(4)6.27%
Min EPS beat(4)-16.19%
Max EPS beat(4)55.09%
EPS beat(8)4
Avg EPS beat(8)16.33%
EPS beat(12)5
Avg EPS beat(12)10.01%
EPS beat(16)7
Avg EPS beat(16)8.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.71%
Min Revenue beat(2)-5.65%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-4.33%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-3.68%
Revenue beat(12)0
Avg Revenue beat(12)-3.16%
Revenue beat(16)2
Avg Revenue beat(16)-5.33%
PT rev (1m)0.31%
PT rev (3m)-6.74%
EPS NQ rev (1m)-3.03%
EPS NQ rev (3m)-4.03%
EPS NY rev (1m)-1.22%
EPS NY rev (3m)-6.87%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 11.47 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.21 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)3.57
EY7.13%
EPS(NY)4.36
Fwd EY8.72%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS40.89
BVpS41.33
TBVpS13.26
PEG (NY)N/A
PEG (5Y)1.15
Graham Number57.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.61% | ||
| ROE | -45.53% | ||
| ROCE | 4.83% | ||
| ROIC | 3.82% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 5.92% | ||
| OM | 10.86% | ||
| PM (TTM) | N/A | ||
| GM | 33.01% | ||
| 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%
ROICexgc growth 3Y0.9%
ROICexgc 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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.93 |
F-ScoreN/A
WACC7.8%
ROIC/WACC0.49
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)-1.38%
EPS 3Y2.51%
EPS 5Y12.23%
EPS Q2Q%-30.2%
EPS Next Y-19.73%
EPS Next 2Y-1.19%
EPS Next 3Y4.67%
EPS Next 5Y8.57%
Revenue 1Y (TTM)-11.38%
Revenue growth 3Y0.03%
Revenue growth 5Y-0.33%
Sales Q2Q%-14.89%
Revenue Next Year-13.75%
Revenue Next 2Y-6.15%
Revenue Next 3Y-2.97%
Revenue Next 5Y-1.4%
EBIT growth 1Y14.69%
EBIT growth 3Y-1.63%
EBIT growth 5Y8.86%
EBIT Next Year57.59%
EBIT Next 3Y23.24%
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%
ASHLAND INC / ASH FAQ
Can you provide the ChartMill fundamental rating for ASHLAND INC?
ChartMill assigns a fundamental rating of 4 / 10 to ASH.
Can you provide the valuation status for ASHLAND INC?
ChartMill assigns a valuation rating of 4 / 10 to ASHLAND INC (ASH). This can be considered as Fairly Valued.
Can you provide the profitability details for ASHLAND INC?
ASHLAND INC (ASH) has a profitability rating of 4 / 10.
What is the valuation of ASHLAND INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ASHLAND INC (ASH) is 14.02 and the Price/Book (PB) ratio is 1.21.
What is the earnings growth outlook for ASHLAND INC?
The Earnings per Share (EPS) of ASHLAND INC (ASH) is expected to decline by -19.73% in the next year.