Ashland Global Holdings (NYSE:ASH) - Share price, News & Analysis

ASH fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

ASH Stock Overview

Ashland Global Holdings Inc. provides additives and specialty ingredients worldwide.

Rewards

Trading at 19.9% below our estimate of its fair value

Earnings grew by 224.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 12.2% per year for the next 3 years

Ashland Global Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ashland Global Holdings
Historical stock prices
Current Share Price	US$103.18
52 Week High	US$112.91
52 Week Low	US$81.93
Beta	1.14
1 Month Change	-2.44%
3 Month Change	4.75%
1 Year Change	16.38%
3 Year Change	29.02%
5 Year Change	56.55%
Change since IPO	220.26%

Recent News & Updates

Jun 14

Is There Now An Opportunity In Ashland Global Holdings Inc. (NYSE:ASH)?

Ashland Global Holdings Inc. ( NYSE:ASH ), is not the largest company out there, but it saw a decent share price growth...

May 30

Calculating The Intrinsic Value Of Ashland Global Holdings Inc. (NYSE:ASH)

In this article we are going to estimate the intrinsic value of Ashland Global Holdings Inc. ( NYSE:ASH ) by projecting...

Shareholder Returns

	ASH	US Chemicals	US Market
7D	8.1%	3.6%	6.6%
1Y	16.4%	-8.4%	-18.4%

Return vs Industry: ASH exceeded the US Chemicals industry which returned -8.3% over the past year.

Return vs Market: ASH exceeded the US Market which returned -18.5% over the past year.

Price Volatility

Is ASH's price volatile compared to industry and market?
ASH volatility
ASH Average Weekly Movement	5.2%
Chemicals Industry Average Movement	7.0%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: ASH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ASH's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1924	3,800	Guillermo Novo	https://www.ashland.com

Ashland Global Holdings 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.

Ashland Global Holdings Fundamentals Summary

How do Ashland Global Holdings's earnings and revenue compare to its market cap?
ASH fundamental statistics
Market Cap	US$5.58b
Earnings (TTM)	US$175.00m
Revenue (TTM)	US$2.25b

31.9x

P/E Ratio

2.5x

P/S Ratio

Is ASH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASH income statement (TTM)
Revenue	US$2.25b
Cost of Revenue	US$1.50b
Gross Profit	US$746.00m
Other Expenses	US$571.00m
Earnings	US$175.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.23
Gross Margin	33.17%
Net Profit Margin	7.78%
Debt/Equity Ratio	39.5%

How did ASH perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

40%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ASH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ASH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ASH. This is calculated by dividing ASH's market cap by their current preferred multiple.
What is ASH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$5.58b

ASH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.7x
Enterprise Value/EBITDA	12.4x
PEG Ratio	-2.6x

Price to Earnings Ratio vs Peers

How does ASH's PE Ratio compare to its peers?

ASH PE Ratio vs Peers

The above table shows the PE ratio for ASH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	38x

Forward PE

Price-To-Earnings vs Peers: ASH is good value based on its Price-To-Earnings Ratio (31.9x) compared to the peer average (38x).

Price to Earnings Ratio vs Industry

How does ASH's PE Ratio compare vs other companies in the U.S. Chemicals Industry?

Price-To-Earnings vs Industry: ASH is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the US Chemicals industry average (16.1x)

Price to Earnings Ratio vs Fair Ratio

What is ASH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ASH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31.9x
Fair PE Ratio	10.6x

Price-To-Earnings vs Fair Ratio: ASH is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).

Share Price vs Fair Value

What is the Fair Price of ASH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ASH ($103.18) is trading below our estimate of fair value ($128.74)

Significantly Below Fair Value: ASH is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: ASH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Ashland Global Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-12.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASH's earnings are forecast to decline over the next 3 years (-12.2% per year).

Earnings vs Market: ASH's earnings are forecast to decline over the next 3 years (-12.2% per year).

High Growth Earnings: ASH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ASH's revenue (6.3% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: ASH's revenue (6.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ASH's Return on Equity is forecast to be low in 3 years time (12%).

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Past Performance

How has Ashland Global Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

23.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASH has high quality earnings.

Growing Profit Margin: ASH's current net profit margins (7.8%) are higher than last year (2.9%).

Past Earnings Growth Analysis

Earnings Trend: ASH has become profitable over the past 5 years, growing earnings by 23.2% per year.

Accelerating Growth: ASH's earnings growth over the past year (224.1%) exceeds its 5-year average (23.2% per year).

Earnings vs Industry: ASH earnings growth over the past year (224.1%) exceeded the Chemicals industry 30.2%.

Return on Equity

High ROE: ASH's Return on Equity (5.2%) is considered low.

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Financial Health

How is Ashland Global Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ASH's short term assets ($2.0B) exceed its short term liabilities ($810.0M).

Long Term Liabilities: ASH's short term assets ($2.0B) do not cover its long term liabilities ($2.6B).

Debt to Equity History and Analysis

Debt Level: ASH's net debt to equity ratio (11%) is considered satisfactory.

Reducing Debt: ASH's debt to equity ratio has reduced from 92.9% to 39.5% over the past 5 years.

Debt Coverage: ASH's debt is well covered by operating cash flow (25.5%).

Interest Coverage: ASH's interest payments on its debt are well covered by EBIT (3.7x coverage).

Balance Sheet

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Dividend

What is Ashland Global Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.30%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ASH's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: ASH's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: ASH's dividend payments have been volatile in the past 10 years.

Growing Dividend: ASH's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.8%), ASH's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.8%), ASH's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure

CEO

Guillermo Novo (59 yo)

2.5yrs

Tenure

US$7,597,903

Compensation

Mr. Guillermo Novo serves as Chief Executive Officer and President of Versum Materials, Inc. He serves as Independent Director of PPG Industries, Incorporated and has served as its Director since February...

CEO Compensation Analysis

Compensation vs Market: Guillermo's total compensation ($USD7.60M) is about average for companies of similar size in the US market ($USD8.44M).

Compensation vs Earnings: Guillermo's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ASH's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: ASH's board of directors are considered experienced (4.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30