This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TheStreet Ratings Top 10 Rating Changes

Rating Change #9

Ashland Inc (ASH) has been downgraded by TheStreet Ratings from buy to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The revenue fell significantly faster than the industry average of 14.2%. Since the same quarter one year prior, revenues fell by 22.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • ASH's debt-to-equity ratio of 0.93 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.28 is sturdy.
  • ASHLAND INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ASHLAND INC swung to a loss, reporting -$0.66 versus $3.26 in the prior year. This year, the market expects an improvement in earnings ($5.28 versus -$0.66).
  • The gross profit margin for ASHLAND INC is rather low; currently it is at 21.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -14.20% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $149.00 million or 28.70% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

Ashland Inc. operates as a specialty chemicals company in the United States and internationally. Its Ashland Aqualon Functional Ingredients segment produces cellulose ethers; and specialty additives and functional ingredients. The company has a P/E ratio of 12.6, above the average chemicals industry P/E ratio of 7.1 and below the S&P 500 P/E ratio of 17.7. Ashland has a market cap of $4.2 billion and is part of the basic materials sector and chemicals industry. Shares are up 5.6% year to date as of the close of trading on Wednesday.

You can view the full Ashland Ratings Report or get investment ideas from our investment research center.

2 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BT $68.44 0.00%
DOW $51.35 0.00%
EOG $94.54 0.00%
E $38.26 0.00%
FDX $169.81 0.00%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs