Ashland (ASH) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: 2.79%
• Average Volume (3M): 495.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -13.67%
• EPS Growth: -608.89%
• Country: US
• Employees: 3,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.26
• Shares Outstanding: 45,762,100
• 10 Day Avg. Volume: 433,818
• 30 Day Avg. Volume: 495,634
• PEG Ratio: <0.01
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 1.21
• P/FCF Ratio: -550.97
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 7.54
• Enterprise Value/Ebitda: -10.69
• 1Y Price Target: $64.86
• Price Target Upside: 5.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $64.00 ▲(3.96% Upside)

The score is held back primarily by the sharp TTM earnings deterioration and reported net loss, despite resilient cash generation. Offsetting factors include a generally positive intermediate technical trend, a modest dividend yield, and an earnings-call outlook that maintains EBITDA guidance and cost-savings plans while acknowledging near-term operational and demand headwinds.

Positive Factors

Cash generation & liquidity

Consistent operating cash flow and ~50% FCF conversion in a seasonally weak quarter provide a durable buffer to fund operations, capex, and transformation. Strong liquidity supports execution of turnaround actions and reduces near-term refinancing risk during multi-quarter recoveries.

Life Sciences outperformance

Higher-margin, resilient pharma end-markets (injectables, tablet coatings, high‑purity excipients) drive outsized profitability and stability. Structural exposure to Life Sciences supports margin durability, offsets cyclicality in other end markets, and underpins longer-term portfolio quality.

Transformational cost and productivity program

Committed, measurable cost and network optimization reduces fixed-cost leverage and improves operating efficiency. Realized savings to date and multi-year targets indicate structural margin improvement potential that can persist even if volumes lag, strengthening competitive positioning.

Negative Factors

Sharp profitability deterioration

A TTM net loss and negative EBITDA signal material operating stress that erodes retained earnings and ROE. Persistent profitability weakness reduces reinvestment capacity, may force further restructuring or asset sales, and raises the bar for sustainable recovery over multiple quarters.

End-market and volume weakness in Specialty Additives

Sustained demand weakness in China, exports and construction can compress volumes and dilute scale benefits. Structural regional softness and competitive pressure reduce pricing power and extend time to margin recovery, particularly in segments with high fixed manufacturing costs.

Higher leverage and reduced balance-sheet flexibility

Rising leverage combined with negative ROE constrains strategic optionality—limiting M&A, capex, or aggressive restructuring—and increases vulnerability to cyclical downturns. If earnings remain weak, higher leverage elevates refinancing and covenant risk over the medium term.

Ashland Business Overview & Revenue Model

Company Description

Ashland Inc. provides additives and specialty ingredients worldwide. It operates through Life Sciences; Personal Care & Household; Specialty Additives; and Intermediates and Solvents segments. The Life Sciences segment offers pharmaceutical solutions, including controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers, and tablet binders; nutrition solutions, such as thickeners, stabilizers, emulsifiers, and additives; and nutraceutical solutions comprising products for weight management, joint comfort, stomach and intestinal health, sports nutrition, and general wellness, as well as custom formulation, toll processing, and particle engineering solutions. The Personal Care & Household segment provides a range of nature-based, biodegradable, and performance ingredients; solutions for toothpastes, mouth washes and rinses, denture cleaning, and care for teeth; and household supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates, and specialty polymers. The Specialty Additives segment offers rheology modifiers, foam control agents, surfactants and wetting agents, pH neutralizers, advanced ceramics used in catalytic converters, environmental filters, ingredients for the manufacturing of ceramic capacitors, plasma display panels and solar cells, ingredients for textile printing, thermoplastic metals, and alloys for welding. The Intermediates and Solvents segment produces 1,4 butanediol and related derivatives, including n-methylpyrrolidone. It offers its products to customers in a range of consumer and industrial markets, such as architectural coatings, construction, energy, food and beverage, nutraceuticals, personal care, and pharmaceutical. The company was formerly known as Ashland Global Holdings Inc. Ashland Inc. was founded in 1924 and is based in Wilmington, Delaware.

How the Company Makes Money

Ashland generates revenue through the sale of its specialty chemicals and additives across various sectors. The company's revenue model is primarily based on the direct sale of products to manufacturers and businesses in key industries. Key revenue streams include specialty additives that improve product performance, as well as performance materials that serve applications in construction and automotive. Additionally, Ashland benefits from significant partnerships with major companies in its target markets, which help drive sales and expand its reach. The company also focuses on innovation and product development to meet evolving customer needs, thus enhancing its competitive edge and revenue potential.

Ashland Financial Statement Overview

Summary

Mixed fundamentals: the income statement deteriorated sharply with a TTM net loss and negative operating/EBITDA margins (major drag), partly offset by moderate leverage (debt-to-equity ~0.78) and currently positive operating cash flow/free cash flow, though cash flow has been volatile.

Income Statement

Profitability deteriorated sharply in TTM (Trailing-Twelve-Months): revenue declined and the company posted a large net loss with deeply negative operating and EBITDA margins. This is a clear reversal from 2023–2024 when margins were positive and net income was solid, suggesting a major one-time hit or a meaningful operating downturn. Gross margin has held near ~30%, but it has not been enough to absorb the cost structure and below-the-line pressure reflected in the loss.

Balance Sheet

Leverage is moderate: debt is below equity (debt-to-equity ~0.78 in the latest period), but has moved up versus 2022–2024 levels, reducing balance sheet flexibility. Equity remains sizable relative to assets, which provides some cushion; however, returns on equity turned strongly negative in the latest period due to the net loss, raising concerns about near-term capital efficiency and potential pressure if weak earnings persist.

Cash Flow

Cash generation is the bright spot. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive, and free cash flow improved materially versus the prior annual period, indicating good cash discipline despite reported losses. That said, cash flow has been volatile (including negative operating and free cash flow in 2022 and weak annual free cash flow in 2025), and the gap between strong cash flow and weak earnings suggests results may be influenced by working-capital swings or non-cash charges.

Breakdown	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	―	1.82B	2.11B	2.19B	2.39B
Gross Profit	―	549.00M	618.00M	668.00M	830.00M
EBITDA	―	-509.00M	303.00M	457.00M	509.00M
Net Income	―	-845.00M	169.00M	178.00M	927.00M
Balance Sheet
Total Assets	―	4.61B	5.64B	5.94B	6.21B
Cash, Cash Equivalents and Short-Term Investments	―	215.00M	300.00M	417.00M	646.00M
Total Debt	―	1.49B	1.47B	1.46B	1.38B
Total Liabilities	―	2.71B	2.78B	2.84B	2.99B
Stockholders Equity	―	1.90B	2.87B	3.10B	3.22B
Cash Flow
Free Cash Flow	―	-4.00M	274.00M	73.00M	-326.00M
Operating Cash Flow	―	94.00M	411.00M	243.00M	-213.00M
Investing Cash Flow	―	-3.00M	-51.00M	-109.00M	1.56B
Financing Cash Flow	―	-179.00M	-479.00M	-371.00M	-896.00M

Ashland Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASH, the sentiment is Neutral. The current price of 61.56 is below the 20-day moving average (MA) of 62.25, above the 50-day MA of 59.09, and above the 200-day MA of 52.64, indicating a neutral trend. The MACD of 0.76 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 37.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASH.

Ashland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDFC	71 Outperform	$3.12B	35.13	36.41%	1.87%	4.98%	30.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASH	59 Neutral	$2.80B	-3.37	-34.45%	2.79%	-13.67%	-608.89%
NGVT	59 Neutral	$2.37B	-36.78	-38.91%	―	-13.39%	88.25%
KWR	58 Neutral	$2.67B	-308.62	-0.64%	1.37%	0.08%	-107.33%
IOSP	54 Neutral	$2.02B	-1,420.07	-0.09%	2.19%	-4.49%	-100.80%
CC	54 Neutral	$2.25B	-7.02	-69.74%	4.37%	2.12%	-579.74%

Ashland Corporate Events

Ashland Reports Fiscal Q1 2026 Results and Outlook

On February 2, 2026, Ashland reported first‑quarter fiscal 2026 results for the period ended December 31, 2025, showing sales of $386 million, down 5% year over year, with the previously announced Avoca divestiture accounting for about two percentage points of the decline and contributing to a 5% drop in adjusted EBITDA to $58 million. The company posted a net loss of $12 million and a loss from continuing operations of $14 million, but improved adjusted operating income to $14 million and generated $125 million in operating cash flow aided by a $103 million tax refund, while Life Sciences delivered growth on resilient pharma demand, Personal Care held up despite softness in hair care and the Avoca sale, Specialty Additives and Intermediates faced weaker demand and competitive pressure, and management narrowed full‑year fiscal 2026 adjusted EBITDA guidance to $400–$420 million to reflect temporary margin headwinds from a Calvert City equipment outage and weather‑related disruptions, underscoring both operational resilience and near‑term challenges for investors and other stakeholders.

The most recent analyst rating on (ASH) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Ashland stock, see the ASH Stock Forecast page.

Ashland grants CEO long-term equity award to retain leadership

On January 26, 2026, Ashland Inc.’s Compensation Committee approved a one-time equity award valued at $2 million for Chair and CEO Guillermo Novo, structured entirely as time-based restricted stock units that will cliff-vest on December 31, 2028, contingent on his continued employment. The award, to be granted following the filing of Ashland’s first-quarter fiscal 2026 Form 10-Q, is designed to recognize Novo’s contributions and lock in his leadership through 2028, includes no accelerated vesting on retirement before that date, and imposes mutual 180-day advance notice requirements for voluntary resignation without good reason or termination without cause, steps that reinforce leadership stability and align executive incentives with long-term shareholder interests.

The most recent analyst rating on (ASH) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Ashland stock, see the ASH Stock Forecast page.

Ashland Shareholders Approve Directors, Auditor and Executive Pay

At Ashland’s annual stockholders meeting held on January 20, 2026, 90.94% of outstanding common shares were represented in person or by proxy, constituting a quorum. Shareholders elected all eight director nominees to serve until the next annual meeting, ratified Ernst & Young LLP as the company’s independent registered public accounting firm for fiscal 2026, and approved on a non-binding basis the compensation of Ashland’s named executive officers, signaling broad investor support for the current board, governance framework and executive pay practices.

The most recent analyst rating on (ASH) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Ashland stock, see the ASH Stock Forecast page.

Ashland Reports Q4 2025 Results Amid Sales Decline

Ashland Inc. reported its fourth-quarter fiscal 2025 results, showing a sales decline to $478 million, down eight percent from the previous year, primarily due to Portfolio Optimization initiatives. Despite challenging market conditions, Ashland maintained strong margins and delivered consistent revenue and EBITDA, with growth in Personal Care and Life Sciences segments. The company received a $103 million tax refund related to the Nutraceuticals divestiture, strengthening its financial position. Ashland’s strategic focus on cost management and portfolio alignment positions it for future profit growth.

The most recent analyst rating on (ASH) stock is a Hold with a $60.00 price target. To see the full list of analyst forecasts on Ashland stock, see the ASH Stock Forecast page.