📊 ASH Key Takeaways
Is Ashland Inc.. (ASH) a Good Investment?
Ashland exhibits critical financial stress with interest coverage of only 0.5x, indicating the company cannot service debt obligations from operating income. Despite extraordinary revenue growth, net profitability has collapsed to 0.5% margins with ROE of 0.2%, suggesting the growth is not creating shareholder value. The combination of unsustainable debt dynamics and razor-thin operating leverage makes the company highly vulnerable to any business downturn or refinancing challenges.
Ashland's latest fundamentals show weak earnings quality: despite a reported 5627.3% revenue increase, the company still posted negative operating income, a net loss, and negative interest coverage. Liquidity is solid and leverage is not extreme, but until revenue growth translates into sustainable margins and cash generation, the fundamental profile remains unfavorable.
Ashland Inc.. Key Strengths (ASH)
- Strong liquidity position with 3.06x current ratio and $343M cash providing operational flexibility
- Moderate leverage with 0.74x debt-to-equity ratio indicating manageable debt load relative to equity
- Substantial revenue base of $868M providing significant market presence in chemicals sector
- Strong liquidity profile with a 3.15x current ratio and 1.61x quick ratio
- Manageable balance-sheet leverage with debt/equity of 0.74x
- Positive gross margin of 27.2%, indicating underlying product-level profitability before overhead and other costs
ASH Stock Risks: Ashland Inc.. Investment Risks
- Critical interest coverage of 0.5x means operating income cannot cover interest expense—unsustainable debt servicing dynamic
- Net margin of 0.5% with ROE of 0.2% represent non-functional profitability leaving zero margin for error or downturns
- Massive revenue growth (+5627% YoY) coupled with net income collapse (-600% YoY) indicates problematic M&A integration or fundamental operational deterioration
- Negative operating margin and net margin show the business is not currently converting sales into profit
- Negative interest coverage suggests earnings are insufficient to support financing costs
- Growth quality is questionable because the extreme revenue increase did not produce positive earnings or visible free cash flow data
Key Metrics to Watch
- Operating cash flow and free cash flow trends—missing data prevents assessment of actual cash generation capacity
- Interest coverage ratio recovery and debt refinancing ability or restructuring timeline
- Operating margin expansion and path to acceptable net profitability levels above 3-5%
- Operating margin trend and return to positive operating income
- Operating cash flow and free cash flow generation
Ashland Inc.. (ASH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.06x current ratio provides a solid financial cushion.
ASH Profit Margin, ROE & Profitability Analysis
ASH vs Materials Sector: How Ashland Inc.. Compares
How Ashland Inc.. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ashland Inc.. Stock Overvalued? ASH Valuation Analysis 2026
Based on fundamental analysis, Ashland Inc.. shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ashland Inc.. Balance Sheet: ASH Debt, Cash & Liquidity
ASH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ashland Inc..'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $3.31 reflects profitable operations.
ASH Revenue Growth, EPS Growth & YoY Performance
ASH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $479.0M | $4.0M | $0.08 |
| Q1 2026 | $386.0M | -$12.0M | $-0.26 |
| Q3 2025 | $463.0M | $6.0M | $0.12 |
| Q2 2025 | $479.0M | $31.0M | $0.65 |
| Q1 2025 | $405.0M | $26.0M | $0.51 |
| Q3 2024 | $544.0M | $6.0M | $0.12 |
| Q2 2024 | $575.0M | $91.0M | $1.67 |
| Q1 2024 | $473.0M | $26.0M | $0.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ashland Inc.. Dividends, Buybacks & Capital Allocation
ASH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ashland Inc.. (CIK: 0001674862)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ASH
What is the AI rating for ASH?
Ashland Inc.. (ASH) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ASH's key strengths?
Claude: Strong liquidity position with 3.06x current ratio and $343M cash providing operational flexibility. Moderate leverage with 0.74x debt-to-equity ratio indicating manageable debt load relative to equity. ChatGPT: Strong liquidity profile with a 3.15x current ratio and 1.61x quick ratio. Manageable balance-sheet leverage with debt/equity of 0.74x.
What are the risks of investing in ASH?
Claude: Critical interest coverage of 0.5x means operating income cannot cover interest expense—unsustainable debt servicing dynamic. Net margin of 0.5% with ROE of 0.2% represent non-functional profitability leaving zero margin for error or downturns. ChatGPT: Negative operating margin and net margin show the business is not currently converting sales into profit. Negative interest coverage suggests earnings are insufficient to support financing costs.
What is ASH's revenue and growth?
Ashland Inc.. reported revenue of $868.0M.
Does ASH pay dividends?
Ashland Inc.. pays dividends, with $38.0M distributed to shareholders in the trailing twelve months.
Where can I find ASH SEC filings?
Official SEC filings for Ashland Inc.. (CIK: 0001674862) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ASH's EPS?
Ashland Inc.. has a diluted EPS of $0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ASH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ashland Inc.. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ASH stock overvalued or undervalued?
Valuation metrics for ASH: ROE of 0.2% (sector avg: 14%), net margin of 0.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ASH's AI grade for 2026?
Our dual AI analysis gives Ashland Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ASH's free cash flow?
Ashland Inc..'s operating cash flow is N/A, with capital expenditures of $31.0M.
How does ASH compare to other Materials stocks?
Vs Materials sector averages: Net margin 0.5% (avg: 10%), ROE 0.2% (avg: 14%), current ratio 3.06 (avg: 1.6).