ASH

Ashland Global Holdings Inc

Industrial/Transportation


Presented:01/12/2023
Price:$111.73
Cap:$6.05B
Current Price:$86.99
Cap:$4.25B

Presented

Date01/12/2023
Price$111.73
Market Cap$6.05B
Ent Value$5.90B
P/E RatioN/A
Book Value$59.63
Div Yield1.17%
Shares O/S54.14M
Ave Daily Vol369,986
Short Int1.48%

Current

Price$86.99
Market Cap$4.25B
Ashland, Inc. engages in the provision of architectural coatings, construction, energy, food and beverage, nutraceuticals, personal care, and pharmaceutical. It operates through the following segments: Life Sciences, Personal Care, Special Additives, and Intermediates. The company was founded in 1924 and is headquartered in Wilmington, DE.

Publicly traded companies mentioned herein: Ashland Inc (ASH), International Flavor & Fragrances Inc (IFF), Valvoline Inc (VVV)

Highlights

The presenter is long shares of Ashland Inc (ASH), which provides additives and specialty ingredients for the life sciences, personal care, and industrial markets. ASH was a huge conglomerate that has been slowly divesting businesses and focusing on stable, defensive specialty chemicals. These divestitures include the 2017 spin-off of Valvoline and last year’s sale of its Performance Adhesives business, with the proceeds from the latter transaction primarily used for buybacks. Today, the company is 1x net levered and this is the cleanest the story has been in some time. He sees a very reasonable path to reaching ASH’s FY2023 (ends Sept. 30, 2023) EBITDA guidance of $600MM – $650MM in most scenarios. If management can execute on the opportunities in front of them, the presenter would expect ASH to reach the high end of the guidance (vs. $627MM consensus). In that scenario, its valuation could expand from the current 10.5x consensus 2023 EBITDA to 12x – 13x the $650MM EBITDA, creating upside to ~$145 per share before accounting for share repurchases.

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Idea Discussion

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