Ashland (ASH) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: 3.17%
• Average Volume (3M): 522.19K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.91
• Revenue Growth: -7.63%
• EPS Growth: -157.37%
• Country: US
• Employees: 3,200
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Chemicals - Specialty
• EPS (TTM): 0.99
• Shares Outstanding: 45,694,534
• 10 Day Avg. Volume: 465,028
• 30 Day Avg. Volume: 522,188
• PEG Ratio: 2.03
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.02
• Enterprise Value/Market Cap: 2.49
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 9.77
• Enterprise Value/Ebitda: 7.67
• 1Y Price Target: $66.71
• Price Target Upside: 23.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 52 Neutral
• Price Target: $53.00 ▼(-1.80%Downside)

Ashland's overall stock score reflects significant financial performance challenges, with declining revenue and negative profitability metrics weighing heavily. Technical indicators suggest some short-term positivity, but longer-term trends remain concerning. The valuation is pressured by a negative P/E ratio, although the dividend yield provides slight relief. Earnings call insights highlight operational strengths but are overshadowed by substantial market challenges, particularly in sales and revenue declines.

Positive Factors

Innovation and Growth

Ashland's focus on innovation across seven platforms is expected to enhance monetization opportunities and improve asset utilization and capital efficiency.

Market Position and Valuation

International Flavors and Fragrances, Croda, and Givaudan trade at higher multiples, indicating potential for Ashland to narrow its multiple gap.

Restructuring and Efficiency

The restructuring and clean-up of ASH's portfolio are nearing completion, which could improve profitability and stability.

Negative Factors

Earnings Performance

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

Macroeconomic Challenges

ASH may face incrementally higher pressure from tariff/macroeconomic challenges compared to other names under coverage, compounded by unfavorable pricing.

Specialty Additives Performance

Specialty Additives volumes fell mainly due to lower coatings volumes and weakness in China, which more than offset recovery in North America and Europe.

Ashland Business Overview & Revenue Model

Company Description

Ashland Inc. (ASH) is a global specialty chemicals company that operates primarily in the sectors of life sciences, personal care, and specialty additives. The company focuses on providing innovative solutions and high-performance materials to a diverse range of industries, including pharmaceuticals, personal care, food and beverage, coatings, construction, and energy.

How the Company Makes Money

Ashland makes money through its diverse portfolio of high-performance chemical products and specialized solutions. The company's revenue model is primarily based on the sale of specialty additives, ingredients, and performance materials tailored to meet the specific needs of its clients in various industries. Key revenue streams include the life sciences sector, where Ashland provides pharmaceutical and nutraceutical solutions, and the personal care sector, where it supplies ingredients for cosmetics and skincare products. Additionally, Ashland earns from its specialty additives used in industrial applications, such as adhesives, coatings, and construction materials. The company leverages significant partnerships and collaborations with businesses across the globe to enhance its market reach and drive growth. Ashland's technical expertise, extensive research and development capabilities, and customer-focused innovations are crucial factors contributing to its earnings.

Ashland Financial Statement Overview

Summary

Ashland's financial performance is under pressure with declining revenues, negative profitability metrics, and weakening cash flow. The balance sheet is moderately stable but 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.95B	2.11B	2.19B	2.39B	2.11B	2.02B
Gross Profit	610.00M	618.00M	668.00M	830.00M	670.00M	599.00M
EBITDA	42.00M	360.00M	457.00M	580.00M	448.00M	-202.00M
Net Income	-125.00M	169.00M	178.00M	927.00M	220.00M	-508.00M
Balance Sheet
Total Assets	5.23B	5.64B	5.94B	6.21B	6.61B	6.88B
Cash, Cash Equivalents and Short-Term Investments	168.00M	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	2.67B	2.78B	2.84B	2.99B	3.86B	3.84B
Stockholders Equity	2.56B	2.87B	3.10B	3.22B	2.75B	3.04B
Cash Flow
Free Cash Flow	43.00M	325.00M	73.00M	-326.00M	455.00M	70.00M
Operating Cash Flow	165.00M	462.00M	243.00M	-213.00M	560.00M	203.00M
Investing Cash Flow	-27.00M	-102.00M	-109.00M	1.56B	-381.00M	8.00M
Financing Cash Flow	-411.00M	-479.00M	-371.00M	-896.00M	-426.00M	9.00M

Ashland Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 53.97 is above the 20-day moving average (MA) of 51.24, above the 50-day MA of 50.73, and below the 200-day MA of 64.87, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 60.66 is Neutral, neither overbought nor oversold. The STOCH value of 80.84 is Negative, 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	75 Outperform	$3.28B	33.00	5.62%	1.55%	-0.09%	-37.60%
KWR	74 Outperform	$2.18B	23.37	6.78%	1.57%	-5.72%	-19.82%
AVNT	71 Outperform	$3.03B	30.65	4.32%	3.26%	3.58%	-5.17%
IOSP	68 Neutral	$2.16B	81.68	2.21%	1.94%	-7.91%	-81.73%
OLN	64 Neutral	$2.43B	41.52	2.94%	3.80%	-1.13%	-81.74%
Sector *	62 Neutral	$10.16B	9.71	-0.17%	2.93%	2.22%	-32.49%
ASH	52 Neutral	$2.40B	21.03	-3.02%	3.17%	-7.63%	-157.37%

Ashland Corporate Events

Ashland Appoints New Interim CFO Amid Leadership Changes

On May 1, 2025, Ashland Inc. announced the resignation of J. Kevin Willis from his roles as Senior Vice President, Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer, effective May 16, 2025, to pursue another opportunity. His departure was not due to any disagreements with the company. Subsequently, on May 5, 2025, the Board appointed William C. Whitaker as Interim Chief Financial Officer and Samuel A. Richardson as Vice President, Controller, and Principal Accounting Officer, both effective May 6, 2025. These appointments are part of Ashland’s strategic realignment in its financial leadership, with Whitaker and Richardson bringing extensive experience within the company to their new roles.

Ashland Reports Q2 2025 Sales Decline and Outlook Revision

Ashland Inc. reported its second-quarter fiscal 2025 results, showing a 17% decrease in sales to $479 million compared to the prior year, primarily due to its Portfolio Optimization initiatives. The company revised its full-year outlook, highlighting the impact of mixed demand environments and lower-than-expected sales volumes. Despite these challenges, Ashland is focusing on accelerating cost savings from its manufacturing optimization plans, with the Life Sciences and Personal Care business units achieving robust EBITDA margins above 30% this quarter. The company anticipates that its cost reduction and manufacturing optimization initiatives will continue to support results through the second half of the fiscal year and into fiscal 2026.