Ashland (ASH)
NYSE:ASH
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Ashland
(NYSE:ASH)
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Rating:59Neutral
Price Target:
$57.00
▲(1.37% Upside)
Action:ReiteratedDate:02/03/26
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
Consistently positive operating cash flow and roughly $900M liquidity provide durable financial flexibility. Strong cash conversion (FCF ~50% in a seasonally weak quarter) supports capital allocation, funds transformation initiatives, services debt, and buffers cyclical end-market volatility over the medium term.
Negative Factors
Profitability deterioration
A sharp reversal to a TTM net loss and negative margins materially weakens capital returns and ROE. If persistent, this undermines reinvestment capacity, increases reliance on cost actions or balance-sheet adjustments, and raises structural risk to long-term earnings recovery and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & liquidity
Consistently positive operating cash flow and roughly $900M liquidity provide durable financial flexibility. Strong cash conversion (FCF ~50% in a seasonally weak quarter) supports capital allocation, funds transformation initiatives, services debt, and buffers cyclical end-market volatility over the medium term.
Read all positive factors
Ashland (ASH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.57B
Dividend Yield2.79%
Average Volume (3M)686.00K
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-13.67%
EPS Growth-608.89%
CountryUS
Employees3,200
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.26
Shares Outstanding45,762,390
10 Day Avg. Volume552,477
30 Day Avg. Volume685,995
Financial Highlights & Ratios
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 Cap1.49
Enterprise Value/Revenue2.13
Enterprise Value/Gross Profit7.42
Enterprise Value/Ebitda-12.43
Forecast
1Y Price Target
$66.25Price Target Upside17.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)3.92
Revenue Forecast (FY)$1.85B
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 soluti...
How the Company Makes Money
Ashland makes money primarily by manufacturing and selling specialty chemical ingredients and additives to business customers (B2B) that incorporate these materials into finished products (e.g., shampoos and lotions, tablets and other pharmaceutic...
Ashland Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic tone: several core strengths (robust cash generation, strong liquidity, Life Sciences growth, margin improvements in key segments, and tangible innovation/Globalize traction) contrast with near-term operational disruptions (Calvert City outage, weather impacts), pockets of weak end-market demand (China coatings, Intermediates), and modest pricing pressure. Management articulated clear cost-savings and transformation levers and maintained full-year adjusted EBITDA guidance while acknowledging that some issues will delay recovery into Q3/Q4. Overall, underlying business progress and financial resilience appear to outweigh the temporary operational and regional demand challenges.Positive Updates
Strong cash generation and liquidity
Operating cash flow of $125 million in Q1 and ongoing free cash flow of $26 million; free cash flow conversion nearly 50% in a seasonally low quarter. Total liquidity approximately $900 million and net leverage 2.7x (net debt $1.1 billion).
Negative Updates
Overall sales decline
Reported Q1 sales $386 million, down 5% year-over-year; excluding the Evoqua divestiture (~$10 million, ~2%), sales declined 3% reflecting mixed demand and modest pricing pressure.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong cash generation and liquidity
Operating cash flow of $125 million in Q1 and ongoing free cash flow of $26 million; free cash flow conversion nearly 50% in a seasonally low quarter. Total liquidity approximately $900 million and net leverage 2.7x (net debt $1.1 billion).
Read all positive updates
Company Guidance
Ashland narrowed fiscal 2026 adjusted EBITDA guidance to $400–$420 million while reaffirming a ~ $30 million FY26 cost‑savings target (part of a broader $50–55 million network savings target with upside to $60 million) and a combined $35 million revenue commitment from Innovate ($15M goal; YTD $6M delivered) and Globalize ($20M goal; YTD $3M delivered). The outlook assumes stable-to-favorable raw materials, second‑half weighting and includes roughly $11 million of temporary Q2 impacts from the Calvert City start‑up delay and recent weather (Q1 already included an anticipated ~$10M Calvert City EBITDA hit); management reiterated that two‑thirds of those effects are recoverable with timing into Q3/Q4. Management set this guidance off a Q1 baseline of $386 million sales (‑5% YoY), $58 million adjusted EBITDA (‑5% YoY; +3% ex‑Evoqua), 15% adjusted EBITDA margin (with >250 bps compression from Calvert City), $125 million operating cash flow, $26 million ongoing free cash flow (~50% FCF conversion), total liquidity ≈ $900 million, net debt $1.1 billion and net leverage ~2.7x, with adjusted operating income up 27% YoY and adjusted EPS (ex‑amortization) $0.26 (‑7% YoY).Ashland Financial Statement Overview
Summary
Income Statement
23
Negative
Balance Sheet
52
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.81B | 1.82B | 2.11B | 2.19B | 2.39B | 2.11B |
| Gross Profit | 518.00M | 549.00M | 618.00M | 668.00M | 830.00M | 670.00M |
| EBITDA | -309.00M | -509.00M | 303.00M | 457.00M | 509.00M | 448.00M |
| Net Income | -691.00M | -845.00M | 169.00M | 178.00M | 927.00M | 220.00M |
Balance Sheet | ||||||
| Total Assets | 4.52B | 4.61B | 5.64B | 5.94B | 6.21B | 6.61B |
| Cash, Cash Equivalents and Short-Term Investments | 354.00M | 215.00M | 300.00M | 417.00M | 646.00M | 210.00M |
| Total Debt | 1.57B | 1.57B | 1.47B | 1.46B | 1.38B | 2.10B |
| Total Liabilities | 2.64B | 2.71B | 2.78B | 2.84B | 2.99B | 3.86B |
| Stockholders Equity | 1.88B | 1.90B | 2.87B | 3.10B | 3.22B | 2.75B |
Cash Flow | ||||||
| Free Cash Flow | 290.00M | -4.00M | 274.00M | 73.00M | -326.00M | 455.00M |
| Operating Cash Flow | 365.00M | 94.00M | 411.00M | 243.00M | -213.00M | 560.00M |
| Investing Cash Flow | -59.00M | -3.00M | -51.00M | -109.00M | 1.56B | -381.00M |
| Financing Cash Flow | -230.00M | -179.00M | -479.00M | -371.00M | -896.00M | -426.00M |
Ashland Technical Analysis
Positive
56.23
Price Trends
57.69
Negative
57.50
Negative
53.99
Positive
Market Momentum
-0.80
Negative
49.17
Neutral
65.72
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 56.23 is above the 20-day moving average (MA) of 52.33, below the 50-day MA of 57.69, and above the 200-day MA of 53.99, indicating a neutral trend. The MACD of -0.80 indicates Negative momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 65.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASH.
Ashland Risk Analysis
Ashland disclosed 18 risk factors in its most recent earnings report. Ashland reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ashland Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.96B | 38.21 | 34.72% | 1.87% | 4.98% | 30.84% | |
73 Outperform | $1.88B | 16.33 | 9.01% | 2.19% | -4.49% | -100.80% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $2.57B | -56.41 | -33.65% | 2.79% | -13.67% | -608.89% | |
56 Neutral | $2.59B | -12.82 | -127.78% | ― | -13.39% | 88.25% | |
54 Neutral | $2.23B | -964.31 | -0.18% | 1.37% | 0.08% | -107.33% | |
51 Neutral | $3.22B | -4.59 | -113.20% | 4.37% | 2.12% | -579.74% |
* Basic Materials Sector Average
ASH
Ashland
56.23
6.01
11.98%
IOSP
Innospec
75.76
-12.20
-13.87%
KWR
Quaker Chemical
128.65
19.19
17.53%
WDFC
WD-40 Company
219.32
5.80
2.71%
CC
Chemours Company
21.43
9.86
85.14%
NGVT
Ingevity
73.40
40.00
119.76%
Ashland Corporate Events
Business Operations and StrategyFinancial Disclosures
Ashland Reports Fiscal Q1 2026 Results and Outlook
Negative
Feb 2, 2026
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 p...
Business Operations and StrategyExecutive/Board Changes
Ashland grants CEO long-term equity award to retain leadership
Positive
Jan 27, 2026
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, ...
Executive/Board ChangesShareholder Meetings
Ashland Shareholders Approve Directors, Auditor and Executive Pay
Positive
Jan 22, 2026
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 an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.