NasdaqGS:IOSP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: IOSP's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-4.3%

IOSP

-1.1%

US Chemicals

0.6%

US Market


1 Year Return

-13.7%

IOSP

18.4%

US Chemicals

22.7%

US Market

Return vs Industry: IOSP underperformed the US Chemicals industry which returned 16.4% over the past year.

Return vs Market: IOSP underperformed the US Market which returned 21% over the past year.


Shareholder returns

IOSPIndustryMarket
7 Day-4.3%-1.1%0.6%
30 Day27.3%15.5%13.1%
90 Day10.6%7.8%4.5%
1 Year-12.4%-13.7%21.2%18.4%25.5%22.7%
3 Year23.6%19.0%24.9%1.6%49.0%39.1%
5 Year61.4%51.6%84.9%41.5%98.3%76.5%

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?

55.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IOSP ($84.2) is trading above our estimate of fair value ($29.91)

Significantly Below Fair Value: IOSP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IOSP is poor value based on its PE Ratio (55.5x) compared to the US Chemicals industry average (29.1x).

PE vs Market: IOSP is poor value based on its PE Ratio (55.5x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: IOSP is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: IOSP's PB Ratio (2.2x) is in line with the US Chemicals industry average.


Next Steps

Future Growth

How is Innospec forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

52.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IOSP's forecast earnings growth (52.9% per year) is above the savings rate (2.2%).

Earnings vs Market: IOSP's earnings (52.9% per year) are forecast to grow faster than the US market (21.9% per year).

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

Revenue vs Market: IOSP's revenue (8% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: IOSP's revenue (8% 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?

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IOSP has a large one-off loss of $45.3M impacting its September 30 2020 financial results.

Growing Profit Margin: IOSP's current net profit margins (2.9%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: IOSP's earnings have declined by 7.7% 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 (-63.4%) over the past year, making it difficult to compare to the Chemicals industry average (-16.3%).


Return on Equity

High ROE: IOSP's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Innospec's financial position?


Financial Position Analysis

Short Term Liabilities: IOSP's short term assets ($528.8M) exceed its short term liabilities ($229.8M).

Long Term Liabilities: IOSP's short term assets ($528.8M) exceed its long term liabilities ($187.9M).


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 22.9%.

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


Next Steps

Dividend

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

1.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IOSP's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: IOSP's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (4.18%).


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 reasonable payout ratio (68.6%), IOSP's dividend payments are 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?

5.0yrs

Average management tenure


CEO

Patrick Williams (55 yo)

11.58yrs

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 ($USD6.08M) is above average for companies of similar size in the US market ($USD4.21M).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Williams
President11.58yrsUS$6.08m0.70%
$ 14.4m
Ian Cleminson
Executive VP & CFO14.33yrsUS$1.17m0.085%
$ 1.8m
Philip Boon
COO & Executive VP5yrsUS$1.20m0.049%
$ 1.0m
Ian McRobbie
Chief Technology Officer and Senior VP of Research & Technology18.5yrsUS$990.24k0.15%
$ 3.0m
Brian Watt
Senior Vice President of Corporate Development & Investor Relations3.25yrsUS$914.71k0.10%
$ 2.1m
Graeme Blair
Head of Group Finance0.67yrno datano data
David Jones
VP, General Counsel2.67yrsno datano data
Catherine Hessner
Senior Vice President of Human Resources17.25yrsUS$649.28k0.061%
$ 1.3m
Thomas Entwistle
President of Oilfield Services - Americasno datano datano data
Steven Williams
Executive Directorno datano datano data
Philip Curran
Executive Officer3.92yrsno data0.010%
$ 207.0k
Kate Davison
Legal Counselno datano datano data

5.0yrs

Average Tenure

58yo

Average Age

Experienced Management: IOSP's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Williams
President11.58yrsUS$6.08m0.70%
$ 14.4m
Claudia Poccia
Independent Non-Executive Director1.33yrsUS$75.50k0.0075%
$ 155.6k
David Landless
Independent Non-Executive Director4.83yrsUS$170.79k0.0098%
$ 202.4k
Robert Paller
Independent Non-Executive Director11yrsUS$154.79k0.042%
$ 869.7k
Lawrence Padfield
Independent Non-Executive Director7.92yrsUS$157.79k0.012%
$ 244.4k
Milton Blackmore
Independent Non-Executive Chairman8.5yrsUS$232.79k0.028%
$ 589.4k
Elizabeth Arnold
Independent Directorno datano datano data

8.2yrs

Average Tenure

61yo

Average Age

Experienced Board: IOSP's board of directors are considered experienced (8.2 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$2.070b
  • Shares outstanding: 24.58m
  • Website: https://www.innospecinc.com

Number of Employees


Location

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

Listings

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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:35
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
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.