Ashland Inc.

Consumer Discretionary
Specialty Chemicals
www.ashland.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.24B
PE 19
Debt $1.36B
Cash $300.00M
EV $4.30B
FCF $325.00M

Earnings

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Sales & Net Margins

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Earnings	$169.00M
EBIT	-$24.00M
ROE	6%
ROA	-0%
FCF	$325.00M
Equity	$2.87B
Growth Stability	-246%
PE	19.16
PEG	-1.2
PB	1.13
P/FCF	9.96
P/S	1.53
Price/Cash	0.09
Debt/Equity	0.47
Debt/FCF	4.19
Net Margins	8%
Gross Margins	29%
Op. Margins	-1%
Earnings CAGR	20%
Sales Growth YoY	1%
Sales Growth QoQ	-4%
Sales CAGR	-9%
FCF CAGR	6%
Equity CAGR	-1%
Earnings Stability	0.1
Earnings Growth YoY	-500%
Earnings Growth QoQ	167%
Earnings CAGR 5Y	-16%

Sales CAGR 5Y	-2%
FCF CAGR 5Y	11%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	42%
Equity CAGR 3Y	-2%
Market Cap	$3.24B
Revenue	$2.11B
Dividend Yield	2%
Payout Ratio	47%
Assets	$5.65B
Total Debt	$1.36B
Cash	$300.00M
Shares Outstanding	42.36M
EV	4.3B
Earnings Score	8%
Moat Score	57%
Safety Score	57%
Final Score	40%
Working Capital	705M
Current Ratio	2.44
Gross Profit	$618.00M
Shares Growth 3y	-9%
Equity Growth QoQ	-3%
Equity Growth YoY	-7%

Assets & ROA

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Stockholders Equity & ROE

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Ashland Global Holdings is a global specialty materials company that serves a wide range of industrial markets. The company has a business-centric operating model and is organized into five distinct segments: life sciences, personal care and household, performance adhesives, specialty additives, and intermediates and solvents. Key customers for the firm include pharmaceutical companies and manufacturers of personal care products, food and beverages, and nutraceuticals and supplements. There is not a single segment that represents a majority of revenue given its extensive portfolio of products. A large portion of revenue is generated outside of the United States and there is higher demand for the company's services during warmer weather months.

SEC Filings

Direct access to Ashland Inc. (ASH) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Ashland Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Ashland Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 20%

Stability 10%

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Ashland Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Ashland Inc..

Years

Calculation mode

= $4.8B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$325M	$344M	$363M	$384M	$407M	$430M	$455M	$481M	$508M	$538M	$569M	$5.7B
DCF		$312M	$300M	$289M	$278M	$267M	$257M	$247M	$237M	$228M	$219M	$2.2B
Value	$4.8B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Net Margins	6%	-1%	0%	3%	20%	-22%	10%	39%	8%	8%	8%
ROA	-	3%	2%	3%	3%	-6%	3%	5%	3%	-0%	-0%
ROE	-	-1%	0%	3%	14%	-17%	8%	29%	6%	6%	6%

Net Margins (8%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Debt over FCF	-	8.12	50.89	16.11	22.69	10.67	5.5	16.05	10.83	4.19	4.19
Debt over Equity	1.24	0.98	0.84	0.75	0.47	0.62	0.72	0.4	0.43	0.47	0.47
Growth Stability	-	-	-	100%	100%	-246%	100%	100%	84%	38%	-246%

Bad Debt/FCF ratio (4.19)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.47)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-246%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	-8%	-34%	15%	-33%	-7%	-9%	13%	-8%	-4%	-2%
Earnings YoY growth	-	-109%	-103%	11K%	343%	-201%	-143%	321%	-81%	-5%	-16%
Equity YoY growth	-	10%	2%	0%	5%	-15%	-9%	17%	-4%	-7%	-1%
FCF YoY growth	-	-329%	-86%	184%	-53%	136%	106%	-78%	55%	162%	11%