Innospec
Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals worldwide. The last earnings update was 12 days ago. More info.
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IOSP Share Price and Events
7 Day Returns
1 Year Returns
IOSP Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Innospec (IOSP) | 1.1% | -2.7% | 9.6% | 7.6% | 72.3% | 95.9% |
| US Chemicals | -0.6% | -7.8% | -8.9% | -15.4% | 16.9% | 6.7% |
| US Market | -0.7% | -2% | 2.4% | 3% | 39.2% | 42% |
1 Year Return vs Industry and Market
- IOSP outperformed the Chemicals industry which returned -15.4% over the past year.
- IOSP outperformed the Market in United States of America which returned 3% over the past year.
Value
Is Innospec undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Innospec
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Innospec.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 2 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Chemicals Unlevered Beta | Simply Wall St/ S&P Global | 0.87 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.87 (1 + (1- 21%) (12.25%)) |
0.969 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.97 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.969 * 5.96%) |
8.51% |
Discounted Cash Flow Calculation for NasdaqGS:IOSP using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Innospec is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.51%) |
|
|---|---|---|---|
| 2019 | 61.70 | Analyst x1 | 56.86 |
| 2020 | 90.60 | Analyst x1 | 76.95 |
| 2021 | 96.04 | Est @ 6% | 75.17 |
| 2022 | 100.86 | Est @ 5.02% | 72.76 |
| 2023 | 105.23 | Est @ 4.33% | 69.96 |
| 2024 | 109.28 | Est @ 3.85% | 66.96 |
| 2025 | 113.13 | Est @ 3.52% | 63.88 |
| 2026 | 116.84 | Est @ 3.28% | 60.80 |
| 2027 | 120.48 | Est @ 3.12% | 57.78 |
| 2028 | 124.09 | Est @ 3% | 54.85 |
| Present value of next 10 years cash flows | $655.97 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $124.09 × (1 + 2.73%) ÷ (8.51% – 2.73%) |
$2,206.53 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $2,206.53 ÷ (1 + 8.51%)10 |
$975.26 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $655.97 + $975.26 |
$1,631.23 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $1,631.23 / 24.48 |
$66.64 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $66.64 |
| Current discount | Discount to share price of
$82.61
= -1 x ($82.61 - $66.64) / $66.64 |
-24% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Innospec is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Innospec's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Innospec's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $3.75 |
| NasdaqGS:IOSP Share Price ** | NasdaqGS (2019-05-17) in USD | $82.61 |
| United States of America Chemicals Industry PE Ratio | Median Figure of 67 Publicly-Listed Chemicals Companies | 17.88x |
| United States of America Market PE Ratio | Median Figure of 3,088 Publicly-Listed Companies | 17.89x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Innospec.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:IOSP Share Price ÷ EPS (both in USD) = 82.61 ÷ 3.75 |
22.05x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Innospec is overvalued based on earnings compared to the US Chemicals industry average.
- Innospec is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Innospec's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 22.05x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts |
12.3%per year |
| United States of America Chemicals Industry PEG Ratio | Median Figure of 49 Publicly-Listed Chemicals Companies | 1.33x |
| United States of America Market PEG Ratio | Median Figure of 2,117 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 22.05x ÷ 12.3% |
1.8x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Innospec is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Innospec's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $34.66 |
| NasdaqGS:IOSP Share Price * | NasdaqGS (2019-05-17) in USD | $82.61 |
| United States of America Chemicals Industry PB Ratio | Median Figure of 93 Publicly-Listed Chemicals Companies | 2.09x |
| United States of America Market PB Ratio | Median Figure of 5,195 Publicly-Listed Companies | 1.83x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:IOSP Share Price ÷ Book Value per Share (both in USD) = 82.61 ÷ 34.66 |
2.38x |
* Primary Listing of Innospec.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Innospec is overvalued based on assets compared to the US Chemicals industry average.
Value checks
We assess Innospec's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check) Innospec has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Innospec expected to perform in the next 1 to 3 years based on estimates from 2 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Innospec's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Innospec's earnings growth is positive but not above the United States of America market average.
- Innospec's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:IOSP Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts | 12.3% |
| NasdaqGS:IOSP Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts | 3.2% |
| United States of America Chemicals Industry Earnings Growth Rate | Market Cap Weighted Average | 13.1% |
| United States of America Chemicals Industry Revenue Growth Rate | Market Cap Weighted Average | 4.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 1,589 | 126 | 118 | 2 |
| 2019-12-31 | 1,534 | 99 | 112 | 2 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 1,505 | 120 | 92 |
| 2018-12-31 | 1,477 | 105 | 85 |
| 2018-09-30 | 1,436 | 83 | 60 |
| 2018-06-30 | 1,405 | 94 | 63 |
| 2018-03-31 | 1,373 | 101 | 67 |
| 2017-12-31 | 1,307 | 83 | 62 |
| 2017-09-30 | 1,191 | 54 | 89 |
| 2017-06-30 | 1,064 | 38 | 77 |
| 2017-03-31 | 966 | 79 | 80 |
| 2016-12-31 | 883 | 106 | 81 |
| 2016-09-30 | 892 | 114 | 91 |
| 2016-06-30 | 940 | 120 | 115 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
All data from Innospec Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 4.81 | 4.88 | 4.74 | 2.00 |
| 2019-12-31 | 4.56 | 4.61 | 4.51 | 2.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 3.75 |
| 2018-12-31 | 3.48 |
| 2018-09-30 | 2.46 |
| 2018-06-30 | 2.57 |
| 2018-03-31 | 2.76 |
| 2017-12-31 | 2.56 |
| 2017-09-30 | 3.68 |
| 2017-06-30 | 3.19 |
| 2017-03-31 | 3.31 |
| 2016-12-31 | 3.39 |
| 2016-09-30 | 3.78 |
| 2016-06-30 | 4.79 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Innospec will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Innospec's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Innospec has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Innospec performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Innospec's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Innospec's 1-year earnings growth exceeds its 5-year average (37% vs -4.8%)
- Innospec's earnings growth has exceeded the US Chemicals industry average in the past year (37% vs 14.2%).
Earnings and Revenue History
All data from Innospec Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 1,504.50 | 91.50 | 260.20 | 34.20 |
| 2018-12-31 | 1,476.90 | 85.00 | 255.30 | 33.40 |
| 2018-09-30 | 1,435.70 | 59.80 | 256.10 | 32.70 |
| 2018-06-30 | 1,405.00 | 62.50 | 253.50 | 32.50 |
| 2018-03-31 | 1,373.20 | 66.80 | 250.10 | 32.30 |
| 2017-12-31 | 1,306.80 | 61.80 | 239.50 | 31.40 |
| 2017-09-30 | 1,190.80 | 88.70 | 233.30 | 29.60 |
| 2017-06-30 | 1,063.90 | 76.80 | 228.70 | 28.20 |
| 2017-03-31 | 965.60 | 79.60 | 220.90 | 25.90 |
| 2016-12-31 | 883.40 | 81.30 | 209.50 | 25.40 |
| 2016-09-30 | 891.60 | 90.70 | 208.20 | 25.60 |
| 2016-06-30 | 940.30 | 114.90 | 204.80 | 25.70 |
| 2016-03-31 | 955.20 | 120.50 | 201.90 | 26.00 |
| 2015-12-31 | 1,012.30 | 119.50 | 206.70 | 25.30 |
| 2015-09-30 | 1,057.00 | 115.90 | 198.70 | 24.20 |
| 2015-06-30 | 1,031.00 | 101.10 | 188.40 | 23.60 |
| 2015-03-31 | 1,009.40 | 85.10 | 175.90 | 22.70 |
| 2014-12-31 | 960.90 | 84.10 | 169.20 | 22.20 |
| 2014-09-30 | 911.80 | 84.90 | 165.20 | 21.90 |
| 2014-06-30 | 876.40 | 78.10 | 154.60 | 21.60 |
| 2014-03-31 | 840.10 | 76.70 | 148.40 | 21.30 |
| 2013-12-31 | 818.80 | 77.80 | 142.10 | 21.20 |
| 2013-09-30 | 790.90 | 60.40 | 134.60 | 21.80 |
| 2013-06-30 | 781.50 | 61.90 | 131.10 | 20.90 |
| 2013-03-31 | 775.00 | 60.30 | 126.90 | 20.60 |
| 2012-12-31 | 776.40 | 66.90 | 118.90 | 19.60 |
| 2012-09-30 | 763.20 | 75.20 | 61.70 | 19.00 |
| 2012-06-30 | 781.90 | 42.90 | 106.00 | 18.90 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Innospec has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Innospec used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.
- Innospec's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Innospec's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Innospec has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Innospec's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Innospec's finances.
The net worth of a company is the difference between its assets and liabilities.
- Innospec is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Innospec's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Innospec Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 848.90 | 247.80 | 123.50 |
| 2018-12-31 | 825.50 | 210.90 | 123.10 |
| 2018-09-30 | 840.30 | 228.20 | 91.40 |
| 2018-06-30 | 819.70 | 228.20 | 66.00 |
| 2018-03-31 | 824.80 | 218.80 | 78.10 |
| 2017-12-31 | 794.30 | 224.30 | 90.20 |
| 2017-09-30 | 747.90 | 235.10 | 65.50 |
| 2017-06-30 | 704.40 | 254.90 | 48.80 |
| 2017-03-31 | 676.50 | 243.70 | 45.40 |
| 2016-12-31 | 653.80 | 273.30 | 101.90 |
| 2016-09-30 | 652.20 | 147.50 | 167.10 |
| 2016-06-30 | 639.50 | 157.90 | 153.20 |
| 2016-03-31 | 619.10 | 156.00 | 115.00 |
| 2015-12-31 | 605.30 | 134.70 | 141.70 |
| 2015-09-30 | 588.20 | 137.70 | 132.80 |
| 2015-06-30 | 549.70 | 142.00 | 69.80 |
| 2015-03-31 | 522.10 | 142.10 | 51.70 |
| 2014-12-31 | 515.90 | 141.60 | 46.30 |
| 2014-09-30 | 457.50 | 115.00 | 95.30 |
| 2014-06-30 | 441.30 | 139.50 | 97.40 |
| 2014-03-31 | 426.80 | 139.70 | 95.90 |
| 2013-12-31 | 409.40 | 148.00 | 86.80 |
| 2013-09-30 | 376.00 | 93.00 | 60.30 |
| 2013-06-30 | 351.50 | 33.00 | 59.00 |
| 2013-03-31 | 333.80 | 37.00 | 48.20 |
| 2012-12-31 | 317.00 | 30.00 | 27.50 |
| 2012-09-30 | 403.00 | 34.00 | 133.60 |
| 2012-06-30 | 385.70 | 40.00 | 110.50 |
- Innospec's level of debt (29.2%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (32.7% vs 29.2% today).
- Debt is well covered by operating cash flow (48.5%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 24x coverage).
Financial health checks
We assess Innospec's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Innospec has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Innospec's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Innospec
shares you are expected to receive
$24
in your first year as a dividend.
Dividend Amount
- Innospec's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
- Innospec's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 2 Analyst Estimates (S&P Global) | See Below |
| United States of America Chemicals Industry Average Dividend Yield | Market Cap Weighted Average of 54 Stocks | 2.3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2000 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-12-31 | ||
| 2019-12-31 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-07 | 1.000 | 1.195 |
| 2019-02-20 | 0.900 | 1.079 |
| 2019-02-19 | 0.900 | 1.172 |
| 2018-11-07 | 0.900 | 1.327 |
| 2018-11-06 | 0.900 | 1.260 |
| 2018-05-08 | 0.880 | 1.163 |
| 2018-02-15 | 0.780 | 1.116 |
| 2018-02-13 | 0.780 | 1.156 |
| 2017-11-07 | 0.780 | 1.116 |
| 2017-08-09 | 0.760 | 1.284 |
| 2017-08-08 | 0.760 | 1.236 |
| 2017-05-10 | 0.760 | 1.180 |
| 2017-05-09 | 0.760 | 1.175 |
| 2017-02-15 | 0.680 | 1.061 |
| 2017-02-14 | 0.680 | 0.950 |
| 2016-11-03 | 0.680 | 1.012 |
| 2016-11-02 | 0.680 | 1.198 |
| 2016-08-03 | 0.660 | 1.104 |
| 2016-08-02 | 0.660 | 1.268 |
| 2016-05-04 | 0.660 | 1.368 |
| 2016-05-03 | 0.660 | 1.371 |
| 2016-02-17 | 0.620 | 1.385 |
| 2016-02-16 | 0.620 | 1.352 |
| 2015-11-04 | 0.620 | 1.174 |
| 2015-11-03 | 0.620 | 1.109 |
| 2015-08-05 | 0.600 | 1.218 |
| 2015-08-04 | 0.600 | 1.410 |
| 2015-05-06 | 0.600 | 1.359 |
| 2015-05-05 | 0.600 | 1.356 |
| 2015-02-18 | 0.560 | 1.252 |
| 2015-02-17 | 0.560 | 1.304 |
| 2014-11-05 | 0.560 | 1.319 |
| 2014-11-04 | 0.560 | 1.352 |
| 2014-08-06 | 0.540 | 1.391 |
| 2014-08-05 | 0.540 | 1.339 |
| 2014-05-07 | 0.540 | 1.287 |
| 2014-05-06 | 0.540 | 1.278 |
| 2013-11-05 | 0.500 | 1.122 |
| 2011-05-10 | 0.000 | 0.000 |
| 2011-02-18 | 0.000 | 0.000 |
| 2011-02-15 | 0.000 | 0.000 |
| 2010-11-02 | 0.000 | 0.000 |
| 2010-11-01 | 0.000 | 0.000 |
| 2010-08-04 | 0.000 | 0.000 |
| 2010-08-03 | 0.000 | 0.000 |
| 2010-05-07 | 0.000 | 0.000 |
| 2010-05-06 | 0.000 | 0.000 |
| 2010-02-19 | 0.000 | 0.000 |
| 2010-02-16 | 0.000 | 0.000 |
| 2009-11-02 | 0.000 | 0.000 |
| 2009-08-05 | 0.100 | 0.721 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Income/ dividend checks
We assess Innospec's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Innospec afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Innospec has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $5,413,268 |
| AGE | 53 |
| TENURE AS CEO | 10.1 years |
CEO Bio
Mr. Patrick S. Williams has been the Chief Executive Officer and President at Innospec Inc. since April 2, 2009. He has been a Director of Innospec Inc, since April 2, 2009. Mr. Williams has been the Chief Executive Officer of Octel Starreon since 1999. He served as an Executive Vice President and President at Innospec Fuel Specialties LLC from 2005 to 2009 and in addition assumed responsibility for the global Performance Chemicals business in 2008. He held a number of senior management and sales leadership positions in Innospec Fuel Specialties LLC, latterly acting as the Chief Executive Officer of this business from 2004 to 2009. Before joining the predecessor company of Innospec Fuel Specialties LLC, Starreon Corporation, in 1993, Mr. P. Williams established a number of businesses and currently holds equity positions in a small exploration and Oil Production Company and a real estate business. He served as an Executive Vice President and President of Petroleum Specialties at Octel Corp. from September 6, 2005 to April 2009. He joined Starreon in 1993 where he was responsible for developing a strong sales function, which doubled sales within two years. He was instrumental in the formation of the joint venture with Octel to form Octel Starreon in 1999 and continued to drive sales and profitability before playing a key role in the subsequent acquisition by Octel Corp. of the joint venture. He has been a Member of Advisory Board at Digital Offering LLC since October 15, 2013. Mr. Williams holds a Degree in Science and Industrial Communication from the University of Colorado.
CEO Compensation
- Patrick's compensation has been consistent with company performance over the past year.
- Patrick's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Innospec management team in years:
- The average tenure for the Innospec management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Patrick Williams
President
$5M
53
10.1 yrs
Ian Cleminson
Executive VP & CFO
$1M
52
12.8 yrs
Philip Boon
COO & Executive VP
$1M
59
3.5 yrs
Ian McRobbie
Chief Technology Officer and Senior VP of Research & Technology
$869K
69
17 yrs
Brian Watt
Senior Vice President of Corporate Development & Investor Relations
$946K
59
1.8 yrs
Christopher Parsons
Head of Group Finance
41
2.4 yrs
David Jones
VP, General Counsel
49
1.2 yrs
Cathy Hessner
Senior Vice President of Human Resources
$649K
59
15.8 yrs
Tom Entwistle
President of Oilfield Services - Americas
Steve Williams
Executive Director
62
Board of Directors Tenure
Average tenure and age of the Innospec board of directors in years:
- The tenure for the Innospec board of directors is about average.
Board of Directors
Bud Blackmore
Non-Executive Chairman
$207K
70
7 yrs
Patrick Williams
President
$5M
53
10.1 yrs
Hugh Graham Aldous
Non-Executive Director
$135K
73
14.3 yrs
Joachim Roeser
Non-Executive Director
$137K
64
11.3 yrs
David Landless
Non-Employee Director
$138K
59
3.3 yrs
Bob Paller
Non-Executive Director
$137K
84
9.5 yrs
Larry Padfield
Non-Executive Director
$123K
62
6.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 18. Mar 19 | Sell | Patrick Williams | Individual | 15. Mar 19 | 15. Mar 19 | -400 | $81.51 | $-32,603 | ||
| 18. Mar 19 | Sell | Patrick Williams | Individual | 15. Mar 19 | 15. Mar 19 | -14,062 | $83.57 | $-1,164,535 | ||
| 15. Mar 19 | Sell | Patrick Williams | Individual | 13. Mar 19 | 14. Mar 19 | -13,508 | $84.62 | $-1,128,040 | ||
| 15. Mar 19 | Sell | Patrick Williams | Individual | 12. Mar 19 | 12. Mar 19 | -7,030 | $84.94 | $-591,619 | ||
| 12. Jun 18 | Sell | Philip Curran | Individual | 08. Jun 18 | 08. Jun 18 | -300 | $80.03 | $-24,009 | ||
| 06. Jun 18 | Sell | Catherine Hessner | Individual | 05. Jun 18 | 05. Jun 18 | -2,910 | $78.24 | $-227,679 | ||
| 01. Jun 18 | Sell | Ian McRobbie | Individual | 31. May 18 | 31. May 18 | -5,000 | $76.71 | $-383,571 | ||
| 29. May 18 | Sell | Brian Watt | Individual | 24. May 18 | 24. May 18 | -3,500 | $75.32 | $-263,608 | ||
Management checks
We assess Innospec's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Innospec has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Evaluating Innospec Inc.’s (NASDAQ:IOSP) Investments In Its Business
Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' How Do You Calculate Return On Capital Employed? … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Innospec: 0.13 = US$160m ÷ (US$1.5b - US$300m) (Based on the trailing twelve months to March 2019.) So, Innospec has an ROCE of 13%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.
Simply Wall St - – Full articleDoes Innospec Inc.'s (NASDAQ:IOSP) CEO Pay Compare Well With Peers?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Then we'll look at a snap shot of the business growth. … How Does Patrick Williams's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleWhat Kind Of Share Price Volatility Should You Expect For Innospec Inc. (NASDAQ:IOSP)?
(NASDAQ:IOSP), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Simply Wall St - – Full articleIs Innospec Inc.'s (NASDAQ:IOSP) High P/E Ratio A Problem For Investors?
To keep it practical, we'll show how Innospec Inc.'s (NASDAQ:IOSP) P/E ratio could help you assess the value on offer. … Innospec has a price to earnings ratio of 24.27, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleIs Innospec Inc. (NASDAQ:IOSP) As Strong As Its Balance Sheet Indicates?
Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Today we will look at IOSP’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of Innospec's financial health, so you should conduct further analysis.
Simply Wall St - – Full articleInterested In Innospec Inc. (NASDAQ:IOSP)? Here's What Its Recent Performance Looks Like
How IOSP fared against its long-term earnings performance and its industry. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -4.6%, indicating the rate at which IOSP is growing has accelerated … What's the driver of this growth?
Simply Wall St - – Full articleCan Innospec Inc. (NASDAQ:IOSP) Improve Its Returns?
This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs Now The Time To Look At Buying Innospec Inc. (NASDAQ:IOSP)?
led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value.
Simply Wall St - – Full articleInnospec Inc. (NASDAQ:IOSP): Time For A Financial Health Check
(NASDAQ:IOSP) is a small-cap stock with a market capitalization of US$1.7b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes
Simply Wall St - – Full articleWho Has Been Selling Innospec Inc. (NASDAQ:IOSP) Shares?
So we'll take a look at whether insiders have been buying or selling shares in Innospec Inc. … That means that an insider was selling shares at around the current price of US$67.14 … We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price.
Simply Wall St - – Full articleCompany Info
Description
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.
Details
| Name: | Innospec Inc. |
| IOSP | |
| Exchange: | NasdaqGS |
| Founded: | 1938 |
| $2,022,277,104 | |
| 24,479,810 | |
| Website: | http://www.innospecinc.com |
| Address: |
Innospec Inc. 8310 South Valley Highway, Suite 350, Englewood, Colorado, 80112, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | IOSP | Common Stock | Nasdaq Global Select | US | USD | 13. May 1998 | |
| DB | OCT | Common Stock | Deutsche Boerse AG | DE | EUR | 13. May 1998 | |
| LSE | 0JAX | Common Stock | London Stock Exchange | GB | USD | 13. May 1998 |
Number of employees
Current staff
Industry
| Specialty Chemicals | |
| Materials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/20 02:02 |
| End of day share price update: | 2019/05/17 00:00 |
| Last estimates confirmation: | 2019/05/13 |
| Last earnings filing: | 2019/05/08 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
