Loading...

Innospec

Nasdaq:IOSP
Snowflake Description

Flawless balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IOSP
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals worldwide. The last earnings update was 39 days ago. More info.


Add to Portfolio Compare Print
IOSP Share Price and Events
7 Day Returns
1.1%
NasdaqGS:IOSP
1.1%
US Chemicals
0.5%
US Market
1 Year Returns
7.7%
NasdaqGS:IOSP
-12.4%
US Chemicals
0.8%
US Market
IOSP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Innospec (IOSP) 1.1% 3.7% 2.7% 7.7% 80.8% 98.9%
US Chemicals 1.1% 1.6% -6.5% -12.4% 18% 6.1%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • IOSP outperformed the Chemicals industry which returned -12.4% over the past year.
  • IOSP outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
IOSP
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Innospec.

NasdaqGS:IOSP Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:IOSP
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))
= 0.874 (1 + (1- 21%) (11.82%))
0.97
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% + (0.97 * 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.

NasdaqGS:IOSP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.51%)
2019 61.70 Analyst x1 56.86
2020 90.60 Analyst x1 76.94
2021 96.04 Est @ 6% 75.16
2022 100.86 Est @ 5.02% 72.75
2023 105.23 Est @ 4.33% 69.94
2024 109.28 Est @ 3.85% 66.94
2025 113.13 Est @ 3.52% 63.86
2026 116.84 Est @ 3.28% 60.78
2027 120.48 Est @ 3.12% 57.76
2028 124.09 Est @ 3% 54.82
Present value of next 10 years cash flows $655.82
NasdaqGS:IOSP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $124.09 × (1 + 2.73%) ÷ (8.51% – 2.73%)
$2,204.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,204.72 ÷ (1 + 8.51%)10
$974.03
NasdaqGS:IOSP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $655.82 + $974.03
$1,629.85
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,629.85 / 24.48
$66.58
NasdaqGS:IOSP Discount to Share Price
Calculation Result
Value per share (USD) From above. $66.58
Current discount Discount to share price of $85.65
= -1 x ($85.65 - $66.58) / $66.58
-28.6%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NasdaqGS:IOSP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.75
NasdaqGS:IOSP Share Price ** NasdaqGS (2019-06-14) in USD $85.65
United States of America Chemicals Industry PE Ratio Median Figure of 68 Publicly-Listed Chemicals Companies 17.79x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Innospec.

NasdaqGS:IOSP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:IOSP Share Price ÷ EPS (both in USD)

= 85.65 ÷ 3.75

22.86x

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?
Raw Data
NasdaqGS:IOSP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.86x
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 1.25x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:IOSP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.86x ÷ 12.3%

1.87x

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?
Raw Data
NasdaqGS:IOSP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $34.66
NasdaqGS:IOSP Share Price * NasdaqGS (2019-06-14) in USD $85.65
United States of America Chemicals Industry PB Ratio Median Figure of 94 Publicly-Listed Chemicals Companies 2.03x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:IOSP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:IOSP Share Price ÷ Book Value per Share (both in USD)

= 85.65 ÷ 34.66

2.47x

* 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.
X
Value checks
We assess Innospec's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
12.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Innospec expected to grow at an attractive rate?
  • 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
Raw Data
NasdaqGS:IOSP Future Growth Rates Data Sources
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 11.5%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
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
Raw Data
NasdaqGS:IOSP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:IOSP Future Estimates Data
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
NasdaqGS:IOSP Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Innospec's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).
  • Innospec's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:IOSP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months 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 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IOSP Future Estimates Data
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
NasdaqGS:IOSP Past Financials Data
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.
X
Future performance checks
We assess Innospec's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Innospec's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 9.2%).
Earnings and Revenue History
Innospec's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Innospec Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IOSP Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Innospec's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Innospec's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.2x 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.
Raw Data

All data from Innospec Company Filings, last reported 2 months ago.

NasdaqGS:IOSP Past Debt and Equity Data
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 (24.8%) 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 24.8% today).
  • Debt is well covered by operating cash flow (57.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 24x coverage).
X
Financial health checks
We assess Innospec's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Innospec has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.17%
Current annual income from Innospec dividends.
If you bought $2,000 of Innospec shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Innospec's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Innospec's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
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.
Raw Data
NasdaqGS:IOSP Annualized Past and Future Dividends
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 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 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 1.5%
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.

NasdaqGS:IOSP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqGS:IOSP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-07 1.000 1.201
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 volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Innospec's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Innospec's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. Innospec has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Innospec's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Patrick Williams
COMPENSATION $5,413,268
AGE 53
TENURE AS CEO 10.2 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, both up more than 20%.
  • 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:

6.9
Average Tenure
59
Average Age
  • 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

TITLE
President
COMPENSATION
$5M
AGE
53
TENURE
10.2 yrs

Ian Cleminson

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
52
TENURE
12.9 yrs

Philip Boon

TITLE
COO & Executive VP
COMPENSATION
$1M
AGE
59
TENURE
3.6 yrs

Ian McRobbie

TITLE
Chief Technology Officer and Senior VP of Research & Technology
COMPENSATION
$869K
AGE
69
TENURE
17.1 yrs

Brian Watt

TITLE
Senior Vice President of Corporate Development & Investor Relations
COMPENSATION
$946K
AGE
59
TENURE
1.8 yrs

Christopher Parsons

TITLE
Head of Group Finance
AGE
41
TENURE
2.5 yrs

David Jones

TITLE
VP, General Counsel
AGE
49
TENURE
1.3 yrs

Cathy Hessner

TITLE
Senior Vice President of Human Resources
COMPENSATION
$649K
AGE
59
TENURE
15.8 yrs

Tom Entwistle

TITLE
President of Oilfield Services - Americas

Steve Williams

TITLE
Executive Director
AGE
62
Board of Directors Tenure

Average tenure and age of the Innospec board of directors in years:

9.6
Average Tenure
64
Average Age
  • The tenure for the Innospec board of directors is about average.
Board of Directors

Bud Blackmore

TITLE
Non-Executive Chairman
COMPENSATION
$207K
AGE
70
TENURE
7.1 yrs

Patrick Williams

TITLE
President
COMPENSATION
$5M
AGE
53
TENURE
10.2 yrs

Hugh Graham Aldous

TITLE
Non-Executive Director
COMPENSATION
$135K
AGE
73
TENURE
14.4 yrs

Joachim Roeser

TITLE
Non-Executive Director
COMPENSATION
$137K
AGE
64
TENURE
11.4 yrs

David Landless

TITLE
Non-Employee Director
COMPENSATION
$138K
AGE
59
TENURE
3.4 yrs

Bob Paller

TITLE
Non-Executive Director
COMPENSATION
$137K
AGE
84
TENURE
9.6 yrs

Larry Padfield

TITLE
Non-Executive Director
COMPENSATION
$123K
AGE
62
TENURE
6.5 yrs
Who owns this company?
Recent Insider Trading
  • Innospec insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Jun 19 Sell Philip Curran Individual 04. Jun 19 04. Jun 19 -300 $83.12 $-24,936
05. Jun 19 Sell Catherine Hessner Individual 04. Jun 19 04. Jun 19 -2,000 $83.97 $-167,272
31. May 19 Sell Brian Watt Individual 30. May 19 30. May 19 -2,000 $82.54 $-164,018
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
X
Management checks
We assess Innospec's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Does This Valuation Of Innospec Inc. (NASDAQ:IOSP) Imply Investors Are Overpaying?

Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $61.70 $90.60 $96.04 $100.86 $105.23 $109.28 $113.13 $116.84 $120.48 $124.09 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 6% Est @ 5.02% Est @ 4.33% Est @ 3.85% Est @ 3.52% Est @ 3.28% Est @ 3.12% Est @ 3% Present Value ($, Millions) Discounted @ 8.5% $56.87 $76.96 $75.19 $72.78 $69.98 $66.98 $63.91 $60.83 $57.81 $54.88 Present Value of 10-year Cash Flow (PVCF)= $656.18m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$124m × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$2.2b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$2.2b ÷ ( 1 + 8.5%)10 = $976.98m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $1.63b. … NasdaqGS:IOSP Intrinsic value, June 10th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Have Insiders Been Selling Innospec Inc. (NASDAQ:IOSP) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Innospec Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Innospec The Last 12 Months Of Insider Transactions At Innospec The President, Patrick Williams, made the biggest insider sale in the last 12 months. … Innospec Insiders Are Selling The Stock The last quarter saw substantial insider selling of Innospec shares.

Simply Wall St -

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 -

Does 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 -

What 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 -

Is 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 -

Is 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 -

Interested 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 -

Can 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 -

Is 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 -

Company 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
$2,096,695,726
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
Staff numbers
2,000
Innospec employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:56
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/12
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.