NYSE:ASH

Stock Analysis Report

Ashland Global Holdings

Executive Summary

Ashland Global Holdings Inc. provides specialty chemical solutions worldwide.

Rewards

Trading at 48.1% below its fair value

Earnings are forecast to grow 24.68% per year

Earnings grew by 26.3% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 1.48% is not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Sherwin-Williams

NYSE:SHW

Share Price & News

How has Ashland Global Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.1%

ASH

0.4%

US Chemicals

0.3%

US Market


1 Year Return

-1.0%

ASH

1.3%

US Chemicals

18.5%

US Market

Return vs Industry: ASH underperformed the US Chemicals industry which returned 1.3% over the past year.

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


Shareholder returns

ASHIndustryMarket
7 Day4.1%0.4%0.3%
30 Day-5.0%-2.4%1.5%
90 Day-1.8%4.1%5.7%
1 Year0.4%-1.0%16.9%1.3%21.1%18.5%
3 Year38.1%-35.1%32.7%7.6%45.9%36.4%
5 Year41.1%-35.4%53.4%20.4%71.4%52.5%

Price Volatility Vs. Market

How volatile is Ashland Global Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ashland Global Holdings undervalued compared to its fair value and its price relative to the market?

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASH ($74.51) is trading below our estimate of fair value ($143.64)

Significantly Below Fair Value: ASH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ASH is poor value based on its PE Ratio (192.5x) compared to the Chemicals industry average (20.4x).

PE vs Market: ASH is poor value based on its PE Ratio (192.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ASH is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: ASH is good value based on its PB Ratio (1.3x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Ashland Global Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASH's forecast earnings growth (24.7% per year) is above the savings rate (1.7%).

Earnings vs Market: ASH's earnings (24.7% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ASH's revenue (2.4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ASH's revenue (2.4% 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 (7%).


Next Steps

Past Performance

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

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASH has a large one-off loss of $83.0M impacting its September 30 2019 financial results.

Growing Profit Margin: ASH's current net profit margins (1%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: ASH's earnings have declined by -13.9% per year over the past 5 years.

Accelerating Growth: ASH's earnings growth over the past year (26.3%) exceeds its 5-year average (-13.9% per year).

Earnings vs Industry: ASH earnings growth over the past year (26.3%) exceeded the Chemicals industry -17%.


Return on Equity

High ROE: ASH's Return on Equity (0.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ashland Global Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ASH's short term assets ($1.4B) exceed its short term liabilities ($757.0M).

Long Term Liabilities: ASH's short term assets ($1.4B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: ASH's debt to equity ratio (46.7%) is considered high.

Reducing Debt: ASH's debt to equity ratio has reduced from 90.8% to 46.7% over the past 5 years.

Debt Coverage: ASH's debt is not well covered by operating cash flow (14.5%).

Interest Coverage: ASH's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: ASH has a high level of physical assets or inventory.

Debt Coverage by Assets: ASH's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

1.48%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: ASH's dividend (1.48%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ASH's dividend (1.48%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (271.3%), ASH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASH's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).


Next Steps

Management

What is the CEO of Ashland Global Holdings's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Bill Wulfsohn (57yo)

4.9yrs

Tenure

US$9,144,029

Compensation

Mr. William A. Wulfsohn, also known as Bill, has been the Chairman and Chief Executive Officer of Ashland Global Holdings Inc. since January 1, 2015. Mr. Wulfsohn served as the Chief Executive Officer and  ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD9.14M) is above average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ASH's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

65yo

Average Age

Experienced Board: ASH's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$8,493,27913 Jun 19
Eminence Capital, LP
EntityCompany
Shares109,098
Max PriceUS$77.85
BuyUS$425,234,46513 Jun 19
Eminence Capital, LP
EntityCompany
Shares5,283,072
Max PriceUS$80.49

Ownership Breakdown

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


Management Team

  • Bill Wulfsohn (57yo)

    Chairman & CEO

    • Tenure: 4.9yrs
    • Compensation: US$9.14m
  • John Willis (54yo)

    Senior VP & CFO

    • Tenure: 6.6yrs
    • Compensation: US$3.01m
  • Jack Joy

    Vice President of Corporate Development

    • Tenure: 0yrs
  • Peter Ganz (57yo)

    Senior VP

    • Tenure: 8.4yrs
    • Compensation: US$2.18m
  • Vivek Singh

    Head of Finance - Indian Operations and Head of Finance - Valvoline/cummins Ltd

    • Tenure: 12.3yrs
  • Anne Schumann (59yo)

    Senior VP and Chief Human Resources & Information Technology Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.48m
  • Andrew Beer

    Vice President of Marketing & Business Development

    • Tenure: 0yrs
  • Keith Silverman (52yo)

    Senior Vice President of Global Operations

    • Tenure: 7.5yrs
    • Compensation: US$1.83m
  • Osama Musa (51yo)

    Senior VP & CTO

    • Tenure: 1.1yrs
  • Seth Mrozek

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bill Dempsey (68yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$210.00k
  • Mark Rohr (68yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$210.00k
  • Jay Ihlenfeld (67yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$210.00k
  • Bill Wulfsohn (57yo)

    Chairman & CEO

    • Tenure: 4.9yrs
    • Compensation: US$9.14m
  • Brendan Cummins (68yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$225.00k
  • Craig Rogerson (62yo)

    Independent Director

    • Tenure: 0.8yrs
  • Janice Teal (66yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$225.00k
  • Jerome Peribere (64yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$320.90k
  • Sue Main (60yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$223.61k
  • Kathleen Wilson-Thompson (62yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$210.00k

Company Information

Ashland Global Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ashland Global Holdings Inc.
  • Ticker: ASH
  • Exchange: NYSE
  • Founded: 1924
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$4.322b
  • Shares outstanding: 60.18m
  • Website: https://www.ashland.com

Number of Employees


Location

  • Ashland Global Holdings Inc.
  • 50 East RiverCenter Boulevard
  • Covington
  • Kentucky
  • 41011
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASHNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
AHTDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Ashland Global Holdings Inc. provides specialty chemical solutions worldwide. The company’s Specialty Ingredients segment offers products, technologies, and resources for solving formulation and product-pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:27
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.