Analysts have lowered their fair value estimate for Innospec from $115 to $107.50. They cite tempered expectations for revenue growth and profit margins as the reason for this adjustment.
What's in the News
- Innospec's Performance Chemicals business continues its partnership with International Justice Mission (IJM) into a second year, focusing on protecting palm oil workers in Indonesia and fighting forced labor and human trafficking (Key Developments).
- Key initiatives of the IJM partnership have included training over 50 law enforcement and government officials on human rights, launching national awareness campaigns, expanding support services, and promoting digital systems for reporting labor violations (Key Developments).
- The partnership plans to expand efforts to new provinces in Indonesia and implement aftercare systems for survivors of forced labor in 2025 (Key Developments).
- From April to June 2025, Innospec repurchased 89,778 shares for $8.16 million, completing the previously announced buyback. In total, 123,878 shares were repurchased for $11.53 million (Key Developments).
Valuation Changes
- The Fair Value Estimate has decreased from $115 to $107.50.
- The Discount Rate has risen slightly, from 7.30% to 7.32%.
- The Revenue Growth Projection has fallen notably, from 5.35% to 4.23%.
- The Net Profit Margin is now expected to be lower, dropping from 21.86% to 19.97%.
- The Future Price-to-Earnings (P/E) Ratio is projected to increase modestly, from 7.45x to 7.87x.
Disclaimer
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