Ashland Global Holdings Inc

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ASH : NYSE : Basic Materials
$111.32 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 710900.0
12/05/16 - 4:02 PM ET

Financial Analysis


ASHLAND GLOBAL HOLDINGS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. ASHLAND GLOBAL HOLDINGS INC has strong liquidity. Currently, the Quick Ratio is 1.71 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.21% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1248.01280.0
EBITDA ($mil)0.0-10.0
EBIT ($mil)-150.0-94.0
Net Income ($mil)-276.0-54.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1188.01287.0
Total Assets ($mil)9697.010064.0
Total Debt ($mil)3244.03729.0
Equity ($mil)3165.03037.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin30.2130.7
EBITDA Margin0.0-0.78
Operating Margin-12.02-7.34
Sales Turnover0.510.54
Return on Assets-0.293.07
Return on Equity0.066.28
Debt Q4 FY16 Q4 FY15
Current Ratio2.362.24
Debt/Capital0.510.55
Interest Expense0.040.0
Interest Coverage0.0-2.35


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)62.167.0
Div / share0.390.39
EPS-4.4-0.88
Book value / share50.9745.33
Institutional Own % n/a n/a
Avg Daily Volume710915.0421424.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 2.16 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 5.27. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ASHLAND GLOBAL HOLDINGS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ASH NM Peers 28.45   ASH 10.32 Peers 14.24

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

ASH's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ASH is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ASH 36.13 Peers 20.67   ASH NA Peers 2.23

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ASH is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ASH 2.16 Peers 5.27   ASH -103.26 Peers -8.90

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ASH is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ASH is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ASH 1.38 Peers 2.25   ASH -8.15 Peers -6.02

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ASH is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ASH significantly trails its peers on the basis of sales growth

 

 

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