Ashland (ASH) AI Stock Analysis

• Market Cap: $2.45B
• Dividend Yield: 3.01%
• Average Volume (3M): 567.56K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.93
• Revenue Growth: -11.38%
• EPS Growth: -690.99%
• Country: US
• Employees: 3,200
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Chemicals - Specialty
• EPS (TTM): 1.04
• Shares Outstanding: 45,705,960
• 10 Day Avg. Volume: 592,103
• 30 Day Avg. Volume: 567,563
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 6.48
• Enterprise Value/Ebitda: -4.86
• 1Y Price Target: $62.86
• Price Target Upside: 16.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 49 Neutral
• Price Target: $53.00 ▼(-2.05% Downside)

Ashland's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and profitability. While technical indicators show some positive momentum, valuation concerns and mixed earnings call sentiment contribute to a cautious outlook.

Positive Factors

Innovation

Investments in innovation are starting to pay off and could bear fruit in the next two years.

Market Opportunities

ASH sees $8B in new market expansion opportunities, with growth coming from accelerating development, launching platforms, & building the pipeline to achieve FY27 goals.

Restructuring

The recent acceleration of the restructuring program is seen as a positive step.

Negative Factors

Earnings Trend

ASH's earnings cadence has been on a negative trend for several years, limiting upside.

Guidance

ASH lowered its FY guidance range slightly to EBITDA of $400–410mn, lower from $400–420mn earlier.

Macroeconomic Conditions

The weak macro is prohibiting a meaningful recovery/growth.

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 primarily through the sale of specialty chemicals and materials across its diverse product portfolio. The company's revenue model is driven by several key streams, including the provision of various chemical formulations tailored for specific applications in industries such as personal care, pharmaceuticals, and food. Additionally, Ashland benefits from long-term contracts and partnerships with customers that provide stable revenue. The company also invests in research and development to innovate and improve existing products, which helps to create new revenue opportunities. Strategic collaborations and acquisitions further enhance Ashland's market position, contributing to its overall earnings.

Ashland Financial Statement Overview

Summary

Ashland's financial performance is under pressure with declining revenues, negative profitability metrics, and weakening cash flow generation. Despite a moderate balance sheet stability, the negative trends in income and cash flow suggest difficulties in maintaining growth and profitability.

Income Statement

Ashland's TTM financial performance shows a decline in total revenue with a significant negative net income, indicative of profitability challenges. The TTM gross profit margin is approximately 31.28%, which has decreased from previous years, reflecting reduced efficiency in managing production costs. EBIT and EBITDA margins are negative and low, respectively, impacting overall profitability. Revenue has been declining over the past few years, indicating potential demand issues or competitive pressures in the market.

Balance Sheet

Ashland exhibits a relatively stable balance sheet with a debt-to-equity ratio of approximately 0.58, showing moderate leverage. However, the equity ratio is around 48.89%, indicating a balanced capital structure. Despite the declining stockholders' equity, the company's ability to manage its debt levels provides some stability. The return on equity has turned negative in the TTM, highlighting a decrease in shareholder value generation.

Cash Flow

The TTM cash flow analysis reveals a significant drop in operating cash flow compared to previous periods, affecting liquidity. Free cash flow has decreased considerably, impacting the company's ability to invest or return capital to shareholders. The operating cash flow to net income ratio is not meaningful due to a negative net income, suggesting operational cash generation issues. Overall, cash flow stability is a concern, demanding improved operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	2.11B	2.19B	2.39B	2.11B	2.02B
Gross Profit	544.00M	618.00M	668.00M	830.00M	670.00M	599.00M
EBITDA	-725.00M	360.00M	457.00M	580.00M	448.00M	-202.00M
Net Income	-873.00M	169.00M	178.00M	927.00M	220.00M	-508.00M
Balance Sheet
Total Assets	4.62B	5.64B	5.94B	6.21B	6.61B	6.88B
Cash, Cash Equivalents and Short-Term Investments	207.00M	300.00M	417.00M	646.00M	210.00M	454.00M
Total Debt	1.49B	1.47B	1.46B	1.38B	2.10B	1.99B
Total Liabilities	2.73B	2.78B	2.84B	2.99B	3.86B	3.84B
Stockholders Equity	1.89B	2.87B	3.10B	3.22B	2.75B	3.04B
Cash Flow
Free Cash Flow	69.00M	325.00M	73.00M	-326.00M	455.00M	70.00M
Operating Cash Flow	161.00M	462.00M	243.00M	-213.00M	560.00M	203.00M
Investing Cash Flow	-74.00M	-102.00M	-109.00M	1.56B	-381.00M	8.00M
Financing Cash Flow	-330.00M	-479.00M	-371.00M	-896.00M	-426.00M	9.00M

Ashland Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASH, the sentiment is Positive. The current price of 54.11 is above the 20-day moving average (MA) of 52.26, above the 50-day MA of 51.86, and below the 200-day MA of 60.05, indicating a neutral trend. The MACD of 0.62 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 71.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASH.

Ashland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUL	70 Outperform	$3.18B	32.03	5.62%	1.52%	-0.09%	-37.60%
AVNT	70 Neutral	$3.25B	27.44	5.09%	2.97%	3.28%	1.69%
KWR	67 Neutral	$2.36B	21.71	-0.52%	1.41%	-3.09%	-106.46%
IOSP	61 Neutral	$2.06B	110.00	1.55%	1.96%	-5.45%	-87.13%
OLN	58 Neutral	$2.44B	41.89	-0.69%	3.76%	1.49%	-105.20%
ASH	49 Neutral	$2.45B	21.03	-34.43%	3.01%	-11.38%	-690.99%
Sector *	43 Neutral	C$927.89M	-8.64	-0.02%	2.70%	23.29%	-43.30%

Ashland Corporate Events

Ashland Reports Q3 2025 Results with Sales Decline

On July 29, 2025, Ashland Inc. reported its third-quarter fiscal 2025 results, revealing a 15% decline in sales to $463 million compared to the previous year, largely due to portfolio optimization initiatives. The company faced a net loss of $742 million, primarily due to a $706 million non-cash goodwill impairment charge. Despite these challenges, Ashland maintained strong margins through cost-saving measures and operational discipline, with Adjusted EBITDA aligning with expectations. The Life Sciences segment showed growth in pharma applications, while Personal Care experienced a decline due to portfolio changes and customer-specific softness. The company is optimistic about future growth due to strategic investments and market positioning.

Ashland Confirms William Whitaker as CFO

On May 5, 2025, Ashland Inc. appointed William Whitaker as Interim Chief Financial Officer, effective May 6, 2025, and later confirmed him as Senior Vice President, Chief Financial Officer, and Principal Financial Officer on July 18, 2025. With his appointment, Mr. Whitaker will receive a comprehensive compensation package including a base salary, incentive awards, and an equity grant, reflecting the company’s strategic focus on leadership stability and financial oversight.

Ashland Announces Retirement of Senior VP Karl Bostaph

On July 14, 2025, Ashland Inc. announced the retirement of Karl Bostaph, Senior Vice President of Operations, effective October 1, 2025. Bostaph, who has been with the company since its acquisition of Hercules in 2008, played a crucial role in Ashland’s portfolio and footprint optimization initiatives. Wayne Muil, an experienced operations executive, will succeed Bostaph, ensuring a seamless transition and continued operational excellence across Ashland’s global network.