Innospec
Market Cap
US$1.7b
Last Updated
2020/10/26 05:43 UTC
Data Sources
Company Financials +
Executive Summary
Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and good value.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.2%
IOSP
0.3%
US Chemicals
0.4%
US Market
1 Year Return
-25.0%
IOSP
9.0%
US Chemicals
17.8%
US Market
Return vs Industry: IOSP underperformed the US Chemicals industry which returned 9% over the past year.
Return vs Market: IOSP underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| IOSP | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | 0.3% | 0.4% |
| 30 Day | 8.4% | 6.0% | 6.1% |
| 90 Day | -11.4% | 5.7% | 8.9% |
| 1 Year | -24.0%-25.0% | 11.6%9.0% | 20.5%17.8% |
| 3 Year | 16.7%12.4% | 15.2%-6.4% | 42.3%32.9% |
| 5 Year | 31.9%24.1% | 62.3%24.7% | 84.2%63.4% |
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
The Innospec (NASDAQ:IOSP) Share Price Is Up 27% And Shareholders Are Holding On3 weeks ago | Simply Wall St
Are Innospec's (NASDAQ:IOSP) Statutory Earnings A Good Reflection Of Its Earnings Potential?1 month ago | Simply Wall St
Are Innospec Inc.'s (NASDAQ:IOSP) Mixed Financials The Reason For Its Gloomy Performance on The Stock Market?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 ($68.53) is trading below our estimate of fair value ($140.61)
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 (30.8x) compared to the US Chemicals industry average (27.1x).
PE vs Market: IOSP is poor value based on its PE Ratio (30.8x) compared to the US market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: IOSP is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: IOSP is good value based on its PB Ratio (1.9x) compared to the US Chemicals industry average (2x).
Next Steps
Future Growth
How is Innospec forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
67.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IOSP's forecast earnings growth (67.5% per year) is above the savings rate (2.2%).
Earnings vs Market: IOSP's earnings (67.5% per year) are forecast to grow faster than the US market (22.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: IOSP's revenue (3.7% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: IOSP's revenue (3.7% 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?
-5.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IOSP has a large one-off loss of $45.3M impacting its June 30 2020 financial results.
Growing Profit Margin: IOSP's current net profit margins (4%) are lower than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: IOSP's earnings have declined by 5.1% 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 (-40.7%) over the past year, making it difficult to compare to the Chemicals industry average (-18.6%).
Return on Equity
High ROE: IOSP's Return on Equity (6.1%) is considered low.
Next Steps
Financial Health
How is Innospec's financial position?
Financial Position Analysis
Short Term Liabilities: IOSP's short term assets ($532.9M) exceed its short term liabilities ($219.2M).
Long Term Liabilities: IOSP's short term assets ($532.9M) exceed its long term liabilities ($220.1M).
Debt to Equity History and Analysis
Debt Level: IOSP's debt to equity ratio (4.3%) is considered satisfactory.
Reducing Debt: IOSP's debt to equity ratio has reduced from 25.2% to 4.3% over the past 5 years.
Debt Coverage: IOSP's debt is well covered by operating cash flow (336.6%).
Interest Coverage: IOSP's interest payments on its debt are well covered by EBIT (37.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Innospec current dividend yield, its reliability and sustainability?
1.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IOSP's dividend (1.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).
High Dividend: IOSP's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (4.56%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.4%), IOSP's dividend payments are 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?
4.9yrs
Average management tenure
CEO
Patrick Williams (55 yo)
11.5yrs
Tenure
US$6,079,287
Compensation
Mr. Patrick S. Williams serves as Director at AdvanSix Inc. since February 25, 2020. He has been the Chief Executive Officer and President at Innospec Inc. since April 2, 2009. He has been a Director of In ...
CEO Compensation Analysis
Compensation vs Market: Patrick's total compensation ($USD6.08M) is above average for companies of similar size in the US market ($USD4.43M).
Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 11.5yrs | US$6.08m | 0.70% $ 11.7m | |
| Executive VP & CFO | 14.25yrs | US$1.17m | 0.085% $ 1.4m | |
| COO & Executive VP | 4.92yrs | US$1.20m | 0.049% $ 819.4k | |
| Chief Technology Officer and Senior VP of Research & Technology | 18.42yrs | US$990.24k | 0.15% $ 2.5m | |
| Senior Vice President of Corporate Development & Investor Relations | 3.17yrs | US$914.71k | 0.10% $ 1.7m | |
| Head of Group Finance | 0.58yr | no data | no data | |
| VP, General Counsel | 2.58yrs | no data | no data | |
| Senior Vice President of Human Resources | 17.17yrs | US$649.28k | 0.061% $ 1.0m | |
| President of Oilfield Services - Americas | no data | no data | no data | |
| Executive Director | no data | no data | no data | |
| Executive Officer | 3.83yrs | no data | 0.010% $ 168.5k | |
| Legal Counsel | no data | no data | no data |
4.9yrs
Average Tenure
58yo
Average Age
Experienced Management: IOSP's management team is considered experienced (4.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 11.5yrs | US$6.08m | 0.70% $ 11.7m | |
| Independent Non-Executive Director | 1.25yrs | US$75.50k | 0.0075% $ 126.6k | |
| Independent Non-Executive Director | 4.75yrs | US$170.79k | 0.0098% $ 164.8k | |
| Independent Non-Executive Director | 10.92yrs | US$154.79k | 0.042% $ 707.8k | |
| Independent Non-Executive Director | 7.83yrs | US$157.79k | 0.012% $ 199.0k | |
| Independent Non-Executive Chairman | 8.42yrs | US$232.79k | 0.028% $ 479.7k |
8.1yrs
Average Tenure
62.5yo
Average Age
Experienced Board: IOSP's board of directors are considered experienced (8.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IOSP insiders have only sold shares 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$1.684b
- Shares outstanding: 24.57m
- 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/26 05:43 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| 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.