Ashland (ASH) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: 3.2%
• Average Volume (3M): 497.78K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.92
• Revenue Growth: -11.38%
• EPS Growth: N/A
• Country: US
• Employees: 3,200
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 1.04
• Shares Outstanding: 45,694,534
• 10 Day Avg. Volume: 460,654
• 30 Day Avg. Volume: 497,780
• PEG Ratio: <0.01
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.09
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 6.80
• Enterprise Value/Ebitda: -15.35
• 1Y Price Target: $63.83
• Price Target Upside: 20.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 51 Neutral
• Price Target: $53.00 ▲(0.04%Upside)

Ashland's overall stock score of 51 reflects significant financial performance challenges, including declining revenues and profitability issues. The technical analysis provides a neutral outlook, while valuation concerns are evident due to a negative P/E ratio. The earnings call offers some optimism with strategic initiatives, but ongoing market pressures and sales declines are critical risks.

Positive Factors

Innovation and Development

ASH has made solid progress on its research and product development initiatives, indicating strong market interest and potential contributions to the company's profits.

Restructuring

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

Negative Factors

Earnings 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. (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 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: 52.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 52.98 is above the 20-day moving average (MA) of 52.27, above the 50-day MA of 51.09, and below the 200-day MA of 62.28, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 32.98 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
KWR	70 Outperform	$2.10B	22.49	6.78%	1.69%	-5.72%	-19.82%
IOSP	70 Neutral	$2.05B	77.50	2.21%	1.93%	-7.91%	-81.73%
AVNT	69 Neutral	$3.03B	30.59	4.32%	3.23%	3.58%	-5.17%
FUL	68 Neutral	$3.16B	31.83	5.62%	1.60%	-0.09%	-37.60%
OLN	55 Neutral	$2.40B	41.89	-0.69%	4.15%	1.49%	-105.20%
ASH	51 Neutral	$2.29B	21.03	-34.43%	3.20%	-11.38%	―
Sector *	44 Neutral	C$976.69M	-6.88	-14.61%	2.56%	17.52%	-32.77%

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.

The most recent analyst rating on (ASH) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Ashland stock, see the ASH Stock Forecast page.

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.

The most recent analyst rating on (ASH) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Ashland stock, see the ASH Stock Forecast page.

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.

The most recent analyst rating on (ASH) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Ashland stock, see the ASH Stock Forecast page.

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.