Quality Investor

Ashland Inc.

Rank #430Decline

ASH · NYSE · Basic Materials

Ashland Inc. (ASH) — Rank #430 by gross profitability (GP/assets 0.12) · ROE -45.2% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001674862 · all metrics point-in-time as of the filing date.

About

Ashland Inc. provides additives and specialty ingredients in the North and Latin America, Europe, Asia Pacific, and internationally.

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It operates through Life Sciences, Personal Care, Specialty Additives, and Intermediates segments. The Life Sciences segment offers pharmaceutical solutions, including controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers, and tablet binders; and nutrition solutions, such as thickeners, stabilizers, emulsifiers, and additives; agricultural chemicals; diagnostic films; and fine chemicals. Its Personal Care segment provides a range of natural, nature-derived, biodegradable, and performance ingredients; solutions for toothpastes, mouth washes and rinses, denture cleaning, and care for teeth; and household supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates, and specialty polymers. The Specialty Additives segment offers rheology modifiers, foam control agents, surfactants and wetting agents, pH neutralizers, advanced ceramics used in catalytic converters, environmental filters, ingredients for the manufacturing of ceramic capacitors, plasma display panels and solar cells, ingredients for textile printing, thermoplastic metals, and alloys for welding. Its Intermediates segment produces 1,4 butanediol and related derivatives, including n-methylpyrrolidone. It offers its products to customers in a range of consumer and industrial markets, such as architectural coatings, construction, energy, food and beverage, personal care, and pharmaceutical. The company was formerly known as Ashland Global Holdings Inc. and changed its name to Ashland Inc. in August 2022. Ashland Inc.

was founded in 1924 and is headquartered in Wilmington, Delaware.

Industry
Specialty Chemicals
Sector
Basic Materials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
September 30

Price History

ASH-16.6% · -3.6% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E, P/B, and dividend yield matter most — book value provides a floor.

Market Cap

$3.19B

P/E (annual)

P/S (annual)

1.8

P/B

1.7

P/OCF (annual)

23.8

Shareholder Yield

10.4%

Employees

2,900

Industry

Specialty Chemicals

Exchange

NYSE

Signal Flags

1 green2 red
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 3-quarter streak
Revenue declining YoYRevenue contracted year over year
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.12
Return on equity
-45.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.42
Current ratio
3.05×
Net cash
-$984.00M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.8%

Growth

1/2 pass
Revenue growth
-13.7%
Piotroski F-Score
6 / 9
Share dilution
-8.0%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

28.3%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -8.0% — per-share value needs a total required return of 20.3% once share-count change is priced in.

vs. own 6-year median revenue growth: -5.1%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

22.8%

r = 10% (base)

28.3%

r = 12%

33.0%

Net debt / market cap: 30.7%— material leverage inflates the implied growth read.

Base FCF: $36M3Y mean FCF: $161.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
6.7xmed 23.2x8032.0x

P / S

Price / revenue per share

1.2xCheap
1.2xmed 1.8x3.1x

P / B

Price / book value per share

1.2xCheap
1.2xmed 1.5x2.4x

P / GP

Price / gross profit per share

4.0xCheap
4.0xmed 6.1x9.7x

P / FCF

Price / free cash flow per share

61.6xExpensive
11.9xmed 33.2x77.5x

Asset value and restructuring potential (balance-sheet strength) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.12

Primary signal (Novy-Marx).

5th of 5 SIC 51 peers

Return on equity

-45.2%

Gross margin

30.1%

5th of 5 SIC 51 peers

Revenue growth (YoY)

-13.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-8.6%

Revenue CAGR (5Y)

-2.0%

Earnings CAGR (3Y)

FCF CAGR (3Y)

-23.4%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.42

Current ratio

3.05×

3rd of 5 SIC 51 peers

Quick ratio

1.64×

Net cash

-$984.00M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$36.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.04

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.8%

Stock-based comp intensity.

Dividend safety

Composite score

0.2 / 5

Weak
Payout ratio
N/A0/5 Weak
FCF coverage
0.47×0/5 Weak
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 1.42 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Decline
Capital Return
Value