Stock Analysis Report

Executive Summary

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals worldwide.

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




US Chemicals


US Market

1 Year Return




US Chemicals


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

7 Day3.9%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 Year9.0%5.2%-8.9%-26.5%12.6%5.4%
5 Year52.8%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


Is Innospec undervalued compared to its fair value and its price relative to the market?


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?


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?


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


What is Innospec's current dividend yield, its reliability and sustainability?


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


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Patrick Williams (54yo)





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

Patrick Williams
President10.92yrsUS$6.08m0.72% $11.9m
Ian Cleminson
Executive VP & CFO13.67yrsUS$1.17m0.085% $1.4m
Philip Boon
COO & Executive VP4.33yrsUS$1.20m0.048% $795.8k
Ian McRobbie
Chief Technology Officer and Senior VP of Research & Technology17.83yrsUS$990.24k0.14% $2.4m
Brian Watt
Senior Vice President of Corporate Development & Investor Relations2.58yrsUS$914.71k0.10% $1.7m
Graeme Blair
Head of Group Financeno datano datano data
David Jones
VP, General Counsel2yrsno datano data
Catherine Hessner
Senior Vice President of Human Resources16.58yrsUS$649.28k0.060% $998.3k
Thomas Entwistle
President of Oilfield Services - Americasno datano datano data
Steven Williams
Executive Directorno datano datano data


Average Tenure


Average Age

Experienced Management: IOSP's management team is seasoned and experienced (10.9 years average tenure).

Board Members

Patrick Williams
President10.92yrsUS$6.08m0.72% $11.9m
Claudia Poccia
Independent Non-Executive Director0.67yrUS$75.50kno data
David Landless
Independent Non-Executive Director4.17yrsUS$170.79k0.0097% $160.1k
Hugh Graham Aldous
Independent Non-Executive Director15.17yrsUS$179.79k0.13% $2.2m
Joachim Roeser
Independent Non-Executive Director12.17yrsUS$169.79k0.021% $350.1k
Robert Paller
Independent Non-Executive Director10.33yrsUS$154.79k0.042% $687.4k
Lawrence Padfield
Independent Non-Executive Director7.25yrsUS$157.79k0.012% $193.3k
Milton Blackmore
Independent Non-Executive Chairman7.83yrsUS$232.79k0.028% $465.9k


Average Tenure


Average Age

Experienced Board: IOSP's board of directors are considered experienced (9.1 years average tenure).


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:

Number of Employees


  • Innospec Inc.
  • 8310 South Valley Highway
  • Suite 350
  • Englewood
  • Colorado
  • 80112
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IOSPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1998
OCTDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1998
0JAXLSE (London Stock Exchange)YesCommon StockGBUSDMay 1998


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:01
End of Day Share Price2020/03/27 00:00
Annual Earnings2019/12/31

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.