Innospec
Market Cap
US$2.5b
Last Updated
2021/05/07 04:55 UTC
Data Sources
Company Financials +
Executive Summary
Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Innospec's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IOSP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: IOSP's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
5.5%
IOSP
2.3%
US Chemicals
-1.7%
US Market
1 Year Return
39.8%
IOSP
66.6%
US Chemicals
51.8%
US Market
Return vs Industry: IOSP underperformed the US Chemicals industry which returned 66.6% over the past year.
Return vs Market: IOSP underperformed the US Market which returned 51.8% over the past year.
Shareholder returns
| IOSP | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.5% | 2.3% | -1.7% |
| 30 Day | -1.0% | 5.3% | 1.5% |
| 90 Day | 8.6% | 14.5% | 3.1% |
| 1 Year | 41.9%39.8% | 70.1%66.6% | 54.4%51.8% |
| 3 Year | 41.8%36.6% | 50.3%27.6% | 63.0%52.8% |
| 5 Year | 129.8%117.4% | 109.6%68.4% | 127.2%101.9% |
Long-Term Price Volatility Vs. Market
How volatile is Innospec's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
This Is Why Innospec Inc.'s (NASDAQ:IOSP) CEO Compensation Looks Appropriate3 weeks ago | Simply Wall St
Can Innospec Inc. (NASDAQ:IOSP) Performance Keep Up Given Its Mixed Bag Of Fundamentals?1 month ago | Simply Wall St
Did Innospec Inc. (NASDAQ:IOSP) Insiders Sell Shares?Valuation
Is Innospec undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IOSP ($102.77) is trading below our estimate of fair value ($3722.14)
Significantly Below Fair Value: IOSP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IOSP is poor value based on its PE Ratio (133x) compared to the US Chemicals industry average (27.6x).
PE vs Market: IOSP is poor value based on its PE Ratio (133x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: IOSP is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: IOSP is good value based on its PB Ratio (2.6x) compared to the US Chemicals industry average (2.8x).
Future Growth
How is Innospec forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
68.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IOSP's forecast earnings growth (68.5% per year) is above the savings rate (2%).
Earnings vs Market: IOSP's earnings (68.5% per year) are forecast to grow faster than the US market (15.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: IOSP's revenue (13% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: IOSP's revenue (13% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if IOSP's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Innospec performed over the past 5 years?
-11.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IOSP has a large one-off loss of $41.1M impacting its March 31 2021 financial results.
Growing Profit Margin: IOSP's current net profit margins (1.6%) are lower than last year (7.8%).
Past Earnings Growth Analysis
Earnings Trend: IOSP's earnings have declined by 11.9% per year over the past 5 years.
Accelerating Growth: IOSP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IOSP had negative earnings growth (-83.7%) over the past year, making it difficult to compare to the Chemicals industry average (3.3%).
Return on Equity
High ROE: IOSP's Return on Equity (2%) is considered low.
Financial Health
How is Innospec's financial position?
Financial Position Analysis
Short Term Liabilities: IOSP's short term assets ($607.6M) exceed its short term liabilities ($274.3M).
Long Term Liabilities: IOSP's short term assets ($607.6M) exceed its long term liabilities ($192.7M).
Debt to Equity History and Analysis
Debt Level: IOSP is debt free.
Reducing Debt: IOSP has no debt compared to 5 years ago when its debt to equity ratio was 24.7%.
Debt Coverage: IOSP has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: IOSP has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Innospec current dividend yield, its reliability and sustainability?
1.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IOSP's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: IOSP's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, IOSP has been paying a dividend for less than 10 years.
Growing Dividend: IOSP's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (134.5%), IOSP's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.8yrs
Average management tenure
CEO
Patrick Williams (55 yo)
12.08yrs
Tenure
US$7,454,445
Compensation
Mr. Patrick S. Williams serves as an Independent Director at AdvanSix Inc. since February 25, 2020. He has been the Chief Executive Officer and President at Innospec Inc. since April 2, 2009. He has been a...
CEO Compensation Analysis
Compensation vs Market: Patrick's total compensation ($USD7.45M) is above average for companies of similar size in the US market ($USD5.41M).
Compensation vs Earnings: Patrick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: IOSP's management team is seasoned and experienced (8.8 years average tenure).
Board Members
Experienced Board: IOSP's board of directors are considered experienced (8.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Innospec Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Innospec Inc.
- Ticker: IOSP
- Exchange: NasdaqGS
- Founded: 1938
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$2.529b
- Shares outstanding: 24.61m
- Website: https://www.innospecinc.com
Number of Employees
Location
- Innospec Inc.
- 8310 South Valley Highway
- Suite 350
- Englewood
- Colorado
- 80112
- United States
Listings
Biography
Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. It operates thr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/07 04:55 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.