NasdaqGS:IOSP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with acceptable 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


Market Performance


7 Day Return

1.8%

IOSP

-0.9%

US Chemicals

0.07%

US Market


1 Year Return

36.3%

IOSP

-3.9%

US Chemicals

8.9%

US Market

Return vs Industry: IOSP exceeded the US Chemicals industry which returned -3.9% over the past year.

Return vs Market: IOSP exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

IOSPIndustryMarket
7 Day1.8%-0.9%0.07%
30 Day0.8%-2.4%-0.3%
90 Day-1.7%-4.0%-1.6%
1 Year38.0%36.3%10.3%-3.9%11.3%8.9%
3 Year55.4%50.0%39.6%13.0%46.3%36.8%
5 Year153.3%138.3%43.1%11.1%62.1%44.3%

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?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IOSP ($92.18) is trading below our estimate of fair value ($136.79)

Significantly Below Fair Value: IOSP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IOSP is poor value based on its PE Ratio (24.5x) compared to the Chemicals industry average (19.6x).

PE vs Market: IOSP is poor value based on its PE Ratio (24.5x) compared to the US market (17.8x).


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 overvalued based on its PB Ratio (2.6x) 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?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IOSP's forecast earnings growth (15.5% per year) is above the savings rate (2.7%).

Earnings vs Market: IOSP's earnings (15.5% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: IOSP's earnings are forecast to grow, but not significantly.

Revenue vs Market: IOSP's revenue (1.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: IOSP's revenue (1.6% 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


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 earnings growth over the past year (47.2%) exceeds its 5-year average (-5.1% per year).

Earnings vs Industry: IOSP earnings growth over the past year (47.2%) exceeded the Chemicals industry -2.9%.


Return on Equity

High ROE: IOSP's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: IOSP's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: IOSP has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Innospec's financial position?


Financial Position Analysis

Short Term Liabilities: IOSP's short term assets ($650.5M) exceeds its short term liabilities ($303.7M)

Long Term Liabilities: IOSP's short term assets (650.5M) exceeds its long term liabilities (322.8M)


Debt to Equity History and Analysis

Debt Level: IOSP's debt to equity ratio (18.4%) is considered satisfactory

Reducing Debt: IOSP's debt to equity ratio has reduced from 31.5% to 18.4% over the past 5 years.

Debt Coverage: IOSP's debt is well covered by operating cash flow (105.7%).

Interest Coverage: IOSP's interest payments on its debt are well covered by EBIT (27x 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 4.098920x debt).


Next Steps

  • Explore more healthy companies in the Materials industry.

Dividend

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

1.08%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IOSP's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: IOSP's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (12%), IOSP's dividend payments are thoroughly 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

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

7.2yrs

Average management tenure


CEO

Patrick Williams (54yo)

10.5yrs

Tenure

US$5,413,268

Compensation

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 ...


CEO Compensation Analysis

Compensation vs. Market: Patrick's total compensation ($USD5.41M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

7.2yrs

Average Tenure

60yo

Average Age

Experienced Management: IOSP's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

9.9yrs

Average Tenure

64yo

Average Age

Experienced Board: IOSP's board of directors are considered experienced (9.9 years average tenure).


Insider Trading

Insider Buying: IOSP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$252,47423 Aug 19
Brian Watt
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Corporate Development & Investor Relations
Shares3,000
Max PriceUS$84.16
SellUS$24,93605 Jun 19
Philip Curran
EntityIndividual
Shares300
Max PriceUS$83.12
SellUS$167,27205 Jun 19
Catherine Hessner
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares2,000
Max PriceUS$83.97
SellUS$164,01831 May 19
Brian Watt
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Corporate Development & Investor Relations
Shares2,000
Max PriceUS$82.54
SellUS$1,164,53518 Mar 19
Patrick Williams
EntityIndividual
Role
Chief Executive Officer
President
Shares14,062
Max PriceUS$83.57
SellUS$32,60318 Mar 19
Patrick Williams
EntityIndividual
Role
Chief Executive Officer
President
Shares400
Max PriceUS$81.51
SellUS$591,61915 Mar 19
Patrick Williams
EntityIndividual
Role
Chief Executive Officer
President
Shares7,030
Max PriceUS$84.94
SellUS$1,128,04015 Mar 19
Patrick Williams
EntityIndividual
Role
Chief Executive Officer
President
Shares13,508
Max PriceUS$84.62

Ownership Breakdown


Management Team

  • Steve Williams (63yo)

    Executive Director

    • Tenure: 0yrs
  • Philip Boon (60yo)

    COO & Executive VP

    • Tenure: 3.9yrs
    • Compensation: US$1.28m
  • Ian McRobbie (70yo)

    Chief Technology Officer and Senior VP of Research & Technology

    • Tenure: 17.4yrs
    • Compensation: US$869.22k
  • Cathy Hessner (60yo)

    Senior Vice President of Human Resources

    • Tenure: 16.2yrs
    • Compensation: US$649.28k
  • Patrick Williams (54yo)

    President

    • Tenure: 10.5yrs
    • Compensation: US$5.41m
  • Ian Cleminson (53yo)

    Executive VP & CFO

    • Tenure: 13.3yrs
    • Compensation: US$1.20m
  • Brian Watt (60yo)

    Senior Vice President of Corporate Development & Investor Relations

    • Tenure: 2.2yrs
    • Compensation: US$945.95k
  • Tom Entwistle

    President of Oilfield Services - Americas

    • Tenure: 0yrs
  • Christopher Parsons (42yo)

    Head of Group Finance

    • Tenure: 2.8yrs
  • David Jones (50yo)

    VP, General Counsel

    • Tenure: 1.6yrs

Board Members

  • Claudia Poccia (59yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • David Landless (60yo)

    Non-Employee Director

    • Tenure: 3.8yrs
    • Compensation: US$138.18k
  • Hugh Graham Aldous (74yo)

    Non-Executive Director

    • Tenure: 14.8yrs
    • Compensation: US$135.18k
  • Patrick Williams (54yo)

    President

    • Tenure: 10.5yrs
    • Compensation: US$5.41m
  • Joachim Roeser (65yo)

    Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: US$137.18k
  • Bob Paller (85yo)

    Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: US$137.18k
  • Larry Padfield (63yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$122.90k
  • Bud Blackmore (71yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: US$207.18k

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$2.257b
  • Shares outstanding: 24.49m
  • 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 Analysis2019/10/22 23:55
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.