Innospec
Market Cap
US$1.7b
Last Updated
2020/03/30 02:01 UTC
Data Sources
Company Financials +
Executive Summary
Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.9%
IOSP
13.1%
US Chemicals
12.5%
US Market
1 Year Return
-20.5%
IOSP
-31.8%
US Chemicals
-12.7%
US Market
Return vs Industry: IOSP exceeded the US Chemicals industry which returned -31.8% over the past year.
Return vs Market: IOSP underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| IOSP | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | 13.1% | 12.5% |
| 30 Day | -23.1% | -17.7% | -14.7% |
| 90 Day | -35.7% | -29.9% | -21.5% |
| 1 Year | -19.6%-20.5% | -22.3%-31.8% | -10.9%-12.7% |
| 3 Year | 9.0%5.2% | -8.9%-26.5% | 12.6%5.4% |
| 5 Year | 52.8%43.9% | 2.1%-20.2% | 31.9%17.5% |
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
4 days ago | Simply Wall St
Here's Why I Think Innospec (NASDAQ:IOSP) Is An Interesting Stock1 week ago | Simply Wall St
Did Innospec Inc.'s (NASDAQ:IOSP) Recent Earnings Growth Beat The Trend?2 weeks ago | Simply Wall St
What Is Innospec's (NASDAQ:IOSP) P/E Ratio After Its Share Price Tanked?Valuation
Is Innospec undervalued compared to its fair value and its price relative to the market?
44.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IOSP ($66.56) is trading below our estimate of fair value ($120.35)
Significantly Below Fair Value: IOSP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IOSP is good value based on its PE Ratio (14.5x) compared to the Chemicals industry average (15x).
PE vs Market: IOSP is poor value based on its PE Ratio (14.5x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: IOSP is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: IOSP is overvalued based on its PB Ratio (1.8x) compared to the US Chemicals industry average (1.3x).
Next Steps
Future Growth
How is Innospec forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
6.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IOSP's forecast earnings growth (6.6% per year) is above the savings rate (1.7%).
Earnings vs Market: IOSP's earnings (6.6% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: IOSP's earnings are forecast to grow, but not significantly.
Revenue vs Market: IOSP's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: IOSP's revenue (3% 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
Next Steps
Past Performance
How has Innospec performed over the past 5 years?
-3.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IOSP has high quality earnings.
Growing Profit Margin: IOSP's current net profit margins (7.4%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: IOSP's earnings have declined by -3.7% per year over the past 5 years.
Accelerating Growth: IOSP's earnings growth over the past year (32%) exceeds its 5-year average (-3.7% per year).
Earnings vs Industry: IOSP earnings growth over the past year (32%) exceeded the Chemicals industry -7.2%.
Return on Equity
High ROE: IOSP's Return on Equity (12.2%) is considered low.
Next Steps
Financial Health
How is Innospec's financial position?
Financial Position Analysis
Short Term Liabilities: IOSP's short term assets ($630.3M) exceed its short term liabilities ($303.5M).
Long Term Liabilities: IOSP's short term assets ($630.3M) exceed its long term liabilities ($246.4M).
Debt to Equity History and Analysis
Debt Level: IOSP's debt to equity ratio (6.4%) is considered satisfactory.
Reducing Debt: IOSP's debt to equity ratio has reduced from 27% to 6.4% over the past 5 years.
Debt Coverage: IOSP's debt is well covered by operating cash flow (275.8%).
Interest Coverage: IOSP's interest payments on its debt are well covered by EBIT (33.6x coverage).
Balance Sheet
Inventory Level: IOSP has a high level of physical assets or inventory.
Debt Coverage by Assets: IOSP's debt is covered by short term assets (assets are 10.8x debt).
Next Steps
Dividend
What is Innospec's current dividend yield, its reliability and sustainability?
1.56%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IOSP's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: IOSP's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (5.49%).
Stability and Growth of Payments
Stable Dividend: IOSP's dividend payments have been volatile in the past 10 years.
Growing Dividend: IOSP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.3%), IOSP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IOSP's dividends in 3 years are forecast to be well covered by earnings (17.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.9yrs
Average management tenure
CEO
Patrick Williams (54yo)
10.92s
Tenure
US$6,079,287
Compensation
Mr. Patrick S. Williams serves as Director at AdvanSix Inc. since February, 2020. He has been the Chief Executive Officer and President at Innospec Inc. since April 2, 2009. He has been a Director of Innos ...
CEO Compensation Analysis
Compensation vs Market: Patrick's total compensation ($USD6.08M) is above average for companies of similar size in the US market ($USD4.58M).
Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 10.92yrs | US$6.08m | 0.72% $11.9m | |
| Executive VP & CFO | 13.67yrs | US$1.17m | 0.085% $1.4m | |
| COO & Executive VP | 4.33yrs | US$1.20m | 0.048% $795.8k | |
| Chief Technology Officer and Senior VP of Research & Technology | 17.83yrs | US$990.24k | 0.14% $2.4m | |
| Senior Vice President of Corporate Development & Investor Relations | 2.58yrs | US$914.71k | 0.10% $1.7m | |
| Head of Group Finance | no data | no data | no data | |
| VP, General Counsel | 2yrs | no data | no data | |
| Senior Vice President of Human Resources | 16.58yrs | US$649.28k | 0.060% $998.3k | |
| President of Oilfield Services - Americas | no data | no data | no data | |
| Executive Director | no data | no data | no data |
10.9yrs
Average Tenure
60yo
Average Age
Experienced Management: IOSP's management team is seasoned and experienced (10.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 10.92yrs | US$6.08m | 0.72% $11.9m | |
| Independent Non-Executive Director | 0.67yr | US$75.50k | no data | |
| Independent Non-Executive Director | 4.17yrs | US$170.79k | 0.0097% $160.1k | |
| Independent Non-Executive Director | 15.17yrs | US$179.79k | 0.13% $2.2m | |
| Independent Non-Executive Director | 12.17yrs | US$169.79k | 0.021% $350.1k | |
| Independent Non-Executive Director | 10.33yrs | US$154.79k | 0.042% $687.4k | |
| Independent Non-Executive Director | 7.25yrs | US$157.79k | 0.012% $193.3k | |
| Independent Non-Executive Chairman | 7.83yrs | US$232.79k | 0.028% $465.9k |
9.1yrs
Average Tenure
64yo
Average Age
Experienced Board: IOSP's board of directors are considered experienced (9.1 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$1.652b
- Shares outstanding: 24.82m
- Website: https://www.innospecinc.com
Number of Employees
Location
- Innospec Inc.
- 8310 South Valley Highway
- Suite 350
- Englewood
- Colorado
- 80112
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IOSP | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | May 1998 |
| OCT | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1998 |
| 0JAX | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 1998 |
Biography
Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals worldwide. It operates through four segments: Fuel Specialties, Performance Chemicals, Oilfield Services, and Octane Additives. The Fuel Specialties segment offers a range of specialty chemical products used as additives in various fuels. Its products are used in the operation of automotive, marine, and aviation engines; power station generators; and heating oil. The Performance Chemicals segment provides technology-based solutions for its customers’ processes or products focused in the personal care, home care, agrochemical, and metal extraction markets. The Oilfield Services segment develops and markets products to prevent loss of mud in drilling operations; chemical solutions for fracturing, stimulation, and completion operations; and products for oil and gas production, which enable flow assurance and asset integrity. The Octane Additives segment produces and sells tetra ethyl lead (TEL) for use in automotive gasoline. This segment is also involved in environmental remediation business that manages the cleanup of redundant TEL facilities. The company sells its products primarily to oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, personal care and home care companies, formulators of agrochemical and metal extraction preparations, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 02:01 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.