Ashland (ASH) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: 3.29%
• Average Volume (3M): 744.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -13.67%
• EPS Growth: N/A
• Country: US
• Employees: 3,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.08
• Shares Outstanding: 45,705,960
• 10 Day Avg. Volume: 842,246
• 30 Day Avg. Volume: 744,185
• PEG Ratio: 9.41
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 13.11
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: -6.59
• 1Y Price Target: $59.00
• Price Target Upside: 18.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $51.00 ▲(2.22% Upside)

Ashland's overall stock score reflects significant profitability challenges and mixed technical signals. The earnings call provided some positive outlooks, particularly in margin maintenance and future growth potential. However, valuation concerns and ongoing operational challenges weigh on the score.

Positive Factors

Margin Sustainability

The expansion of adjusted EBITDA margins indicates improved operational efficiency and cost management, which can enhance profitability over the long term.

Cash Generation Ability

Strong cash generation and liquidity position provide Ashland with the financial flexibility to invest in growth opportunities and weather economic downturns.

Manufacturing Optimization

The manufacturing optimization program is expected to yield significant cost savings, enhancing long-term profitability and competitive positioning.

Negative Factors

Profitability Challenges

Persistent profitability challenges and declining revenue growth highlight operational inefficiencies that could hinder long-term financial performance.

Intermediates Segment Challenges

Ongoing challenges in the Intermediates segment could continue to pressure overall revenue and margins, affecting Ashland's market position in this area.

Weaker Coatings Demand

Sustained weak demand for coatings in key markets could impact sales and profitability, limiting growth prospects in the Specialty Additives segment.

Ashland Business Overview & Revenue Model

Company Description

Ashland Global Holdings Inc. (ASH) is a global leader in specialty chemicals, focused on providing innovative solutions in various sectors including personal care, pharmaceuticals, food and beverage, and construction. The company offers a wide range of products such as adhesives, coatings, and specialty polymers that enhance performance and sustainability for its customers. With a commitment to sustainability and innovation, Ashland operates across multiple regions, serving diverse industries with a portfolio that emphasizes high-value applications and customer-centric solutions.

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 faces significant financial challenges with declining revenues, profitability issues, and reduced cash flow generation. The income statement shows a troubling trend with a significant decline in both revenue and profitability, including a net loss. The balance sheet indicates moderate stability but with declining equity. Cash flow has also decreased significantly, raising concerns about cash generation relative to earnings.

Income Statement

The income statement reveals a troubling trend with a significant decline in both revenue and profitability. The TTM (Trailing-Twelve-Months) period shows a decrease in total revenue to $1.869 billion from $2.113 billion in the previous year, highlighting negative revenue growth. The gross profit margin decreased, and the net profit margin turned negative with a net loss of $873 million. Additionally, the EBIT and EBITDA margins are concerning as they are significantly negative, indicating operational challenges.

Balance Sheet

The balance sheet indicates moderate stability with a debt-to-equity ratio of 0.79, which suggests a manageable level of leverage. However, the equity ratio has decreased over time, now at 40.9% in the TTM period. Stockholders' equity has also declined, pointing to reduced financial stability. The company needs to address its declining equity base to ensure sustained financial health.

Cash Flow

The cash flow statement shows a decline in free cash flow from $325 million to $69 million over the TTM period, indicating a significant drop in free cash flow growth rate. Operating cash flow remains positive but has decreased compared to previous years. The free cash flow to net income ratio is negative due to net losses, which raises concerns about cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82B	2.11B	2.19B	2.39B	2.11B	2.02B
Gross Profit	534.00M	618.00M	668.00M	830.00M	670.00M	599.00M
EBITDA	-528.00M	303.00M	457.00M	509.00M	448.00M	-254.00M
Net Income	-844.00M	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	116.00M	274.00M	73.00M	-326.00M	455.00M	70.00M
Operating Cash Flow	200.00M	411.00M	243.00M	-213.00M	560.00M	203.00M
Investing Cash Flow	-63.00M	-51.00M	-109.00M	1.56B	-381.00M	8.00M
Financing Cash Flow	-231.00M	-479.00M	-371.00M	-896.00M	-426.00M	9.00M

Ashland Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 49.89
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 49.89 is above the 20-day moving average (MA) of 49.57, below the 50-day MA of 50.18, and below the 200-day MA of 52.98, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 69.84 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	73 Outperform	$2.67B	29.53	36.39%	1.90%	4.98%	30.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KWR	58 Neutral	$2.39B	―	-0.64%	1.42%	0.08%	-107.33%
ASH	54 Neutral	$2.29B	―	-34.45%	3.29%	-13.67%	―
IOSP	49 Neutral	$1.89B	―	-0.09%	2.13%	-4.49%	-100.80%
NGVT	48 Neutral	$1.74B	―	-38.91%	―	-13.39%	88.25%
CC	46 Neutral	$1.88B	―	-69.74%	4.91%	2.12%	-579.74%

Ashland Corporate Events

Ashland Global Holdings Reports Q4 2025 Earnings and 2026 Outlook

Ashland Global Holdings, Inc. is a global additives and specialty ingredients company that operates in high-quality, consumer-focused markets such as pharmaceuticals, personal care, and architectural coatings. The company recently released its fourth-quarter fiscal 2025 earnings report, highlighting a disciplined approach to navigating challenging market conditions.

Ashland Global’s Resilient Earnings Amid Challenges

Ashland Global Holdings, Inc. recently held its earnings call, demonstrating a resilient performance amidst macroeconomic challenges. The company successfully maintained margins and achieved expected EBITDA, despite experiencing sales declines due to portfolio optimization. Notable successes were seen in the Life Sciences and Personal Care sectors, although challenges persist in the Intermediates segment and coatings demand. Strong cash generation and liquidity were highlighted, but higher tax rates and delayed optimization benefits pose ongoing challenges.

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.

Ashland Board Member Sergio Pedreiro Resigns

On September 16, 2025, Sergio Pedreiro resigned from Ashland, Inc.’s Board of Directors, including his roles on the Compensation Committee and as Chair of the Audit Committee, effective September 30, 2025. His resignation led to a reduction in the Board’s size from nine to eight members, and it was clarified that his departure was not due to any disagreements with the company’s practices.

The most recent analyst rating on (ASH) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Ashland stock, see the ASH Stock Forecast page.