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Market Cap

US$2.5b

Last Updated

2021/04/16 23:16 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


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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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

0.3%

IOSP

2.9%

US Chemicals

1.3%

US Market


1 Year Return

44.8%

IOSP

70.9%

US Chemicals

53.9%

US Market

Return vs Industry: IOSP underperformed the US Chemicals industry which returned 70.9% over the past year.

Return vs Market: IOSP underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

IOSPIndustryMarket
7 Day0.3%2.9%1.3%
30 Day-1.2%3.8%3.3%
90 Day5.7%7.6%8.9%
1 Year46.9%44.8%75.1%70.9%56.6%53.9%
3 Year44.8%39.4%41.0%14.7%64.4%53.6%
5 Year123.7%110.2%95.5%49.1%120.4%95.7%

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

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 ($102.82) is trading below our estimate of fair value ($2778.98)

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 (88x) compared to the US Chemicals industry average (28x).

PE vs Market: IOSP is poor value based on its PE Ratio (88x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: IOSP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: IOSP is good value based on its PB Ratio (2.7x) 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?

54.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IOSP's forecast earnings growth (54% per year) is above the savings rate (2%).

Earnings vs Market: IOSP's earnings (54% per year) are forecast to grow faster than the US market (18.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IOSP's revenue (10% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: IOSP's revenue (10% 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?

-9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IOSP has a large one-off loss of $41.1M impacting its December 31 2020 financial results.

Growing Profit Margin: IOSP's current net profit margins (2.4%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: IOSP's earnings have declined by 9.7% 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 (-74.4%) 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 (3%) is considered low.


Financial Health

How is Innospec's financial position?


Financial Position Analysis

Short Term Liabilities: IOSP's short term assets ($566.2M) exceed its short term liabilities ($252.4M).

Long Term Liabilities: IOSP's short term assets ($566.2M) exceed its long term liabilities ($200.1M).


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 21.8%.

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?

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IOSP's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: IOSP's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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: At its current payout ratio (89%), IOSP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IOSP's dividends in 3 years are forecast to be well covered by earnings (21.7% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Patrick Williams (55 yo)

12yrs

Tenure

US$7,454,445

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 ($USD7.45M) is above average for companies of similar size in the US market ($USD5.13M).

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 (5.4 years average tenure).


Board Members

Experienced Board: IOSP's board of directors are considered experienced (8.3 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$2.526b
  • Shares outstanding: 24.84m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 23:16
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.