Ashland Inc. to Valvoline Inc.
This paper will show how Ashland Global Holding Inc. is not attractive for most potential shareholder to invest in for the short term or long term. In the manufacturing and chemical distribution industry, Ashland Global Holdings Inc. is a global specialty chemicals and technologies company that serve a wide range of companies and consumers in the architectural, automotive, construction, food and beverage, and much more. This company employ “more than 5,000 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plants operates – who thrive on developing practical innovative and elegant solution to complex problems for customers in more than 100 counties” (Ashland …show more content…
Specialty Ingredients makes cellulose ethers, vinyl pyrrolidones, and bio-functional products. Looking at the financial report of the financial statement of the company from 2015 to 2016, Specialty Ingredients sales decreased 174million or 8% to 2,089 million in 2016. “Energy market sales (based on Specialty Ingredients) decreased $55 million compared to the prior year primarily due to lower volume as a result of reduced demand by customers, specifically those within industries negatively impacted by a low oil price environment,” (10k report, data and page). Performance Materials is a business of making unsaturated polyester resins and vinyl ester resin. Its key customers include: manufacturers of residential and commercial building products; industrial product specifiers and manufacturers; wind blade and pipe manufacturers; automotive and truck OEM suppliers; boat builders; engineered plastics and electronic producers; and specialty chemical manufacturers. This part of the company also decreased in sales about “227 million, or 20% to $930 million in 2016 compared from 2015,” according to the financial statement ((10k report, data and page). Valvoline is a producer and distributor of premium-brand automotive, commercial and industrial lubricants, and automotive chemicals. A look at 2016 compared to 2015 shows …show more content…
The IPO set price for Valvoline is has of April 21, 2017 was $22.23 but started as $24.10 (Vroom: Auto Company Valvoline Raises $660 Million in IPO). The graphs below show some of the price per earnings ratio, price/earnings to growth ratio, and forecast earnings growth. The estimated earnings growth show in Graph 1 seem unstable. It seem to be doing while every other year, which does not look stable to shareholders. Then considering the PEG ratio is promising some growth. Lastly, allowing for the price per earnings ratio, graph 3, to look at the profitability of Valvoline which is decreasing in the estimated years to come. The growth compared to the P/E ratio, the growth seem to rise more in the projection of 5 years. Keeping in mind that this is a new company to the NYSE it would take a while to adapt to its new
This paper will show how Ashland Global Holding Inc. is not attractive for most potential shareholder to invest in for the short term or long term. In the manufacturing and chemical distribution industry, Ashland Global Holdings Inc. is a global specialty chemicals and technologies company that serve a wide range of companies and consumers in the architectural, automotive, construction, food and beverage, and much more. This company employ “more than 5,000 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plants operates – who thrive on developing practical innovative and elegant solution to complex problems for customers in more than 100 counties” (Ashland …show more content…
Specialty Ingredients makes cellulose ethers, vinyl pyrrolidones, and bio-functional products. Looking at the financial report of the financial statement of the company from 2015 to 2016, Specialty Ingredients sales decreased 174million or 8% to 2,089 million in 2016. “Energy market sales (based on Specialty Ingredients) decreased $55 million compared to the prior year primarily due to lower volume as a result of reduced demand by customers, specifically those within industries negatively impacted by a low oil price environment,” (10k report, data and page). Performance Materials is a business of making unsaturated polyester resins and vinyl ester resin. Its key customers include: manufacturers of residential and commercial building products; industrial product specifiers and manufacturers; wind blade and pipe manufacturers; automotive and truck OEM suppliers; boat builders; engineered plastics and electronic producers; and specialty chemical manufacturers. This part of the company also decreased in sales about “227 million, or 20% to $930 million in 2016 compared from 2015,” according to the financial statement ((10k report, data and page). Valvoline is a producer and distributor of premium-brand automotive, commercial and industrial lubricants, and automotive chemicals. A look at 2016 compared to 2015 shows …show more content…
The IPO set price for Valvoline is has of April 21, 2017 was $22.23 but started as $24.10 (Vroom: Auto Company Valvoline Raises $660 Million in IPO). The graphs below show some of the price per earnings ratio, price/earnings to growth ratio, and forecast earnings growth. The estimated earnings growth show in Graph 1 seem unstable. It seem to be doing while every other year, which does not look stable to shareholders. Then considering the PEG ratio is promising some growth. Lastly, allowing for the price per earnings ratio, graph 3, to look at the profitability of Valvoline which is decreasing in the estimated years to come. The growth compared to the P/E ratio, the growth seem to rise more in the projection of 5 years. Keeping in mind that this is a new company to the NYSE it would take a while to adapt to its new