NasdaqGS:IPHS

Stock Analysis Report

Executive Summary

Innophos Holdings, Inc., together with its subsidiaries, produces specialty ingredients with applications in food, health, nutrition, and industrial markets.

Rewards

Earnings grew by 6.5% over the past year

Pays a reliable dividend of 6.01%

Risk Analysis

Earnings have declined by -18.49% per year over past 5 years

Debt is not well covered by operating cash flow

Dividend of 6.01% is not well covered by earnings



Snowflake Analysis

Proven track record average dividend payer.


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Balchem

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Share Price & News

How has Innophos Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IPHS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.03%

IPHS

-1.2%

US Chemicals

0.6%

US Market


1 Year Return

12.9%

IPHS

0.4%

US Chemicals

24.6%

US Market

Return vs Industry: IPHS exceeded the US Chemicals industry which returned 1.6% over the past year.

Return vs Market: IPHS underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

IPHSIndustryMarket
7 Day0.03%-1.2%0.6%
30 Day0.09%-1.9%3.0%
90 Day-1.2%3.4%10.6%
1 Year18.5%12.9%16.1%0.4%27.3%24.6%
3 Year-27.1%-36.6%29.8%5.0%50.5%40.8%
5 Year-32.8%-46.7%50.4%17.9%78.9%59.1%

Price Volatility Vs. Market

How volatile is Innophos Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

29.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IPHS ($31.93) is trading above our estimate of fair value ($21.34)

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


Price To Earnings Ratio

PE vs Industry: IPHS is poor value based on its PE Ratio (29.4x) compared to the Chemicals industry average (20.8x).

PE vs Market: IPHS is poor value based on its PE Ratio (29.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IPHS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IPHS is good value based on its PB Ratio (1.8x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Innophos Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.0%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if IPHS's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if IPHS's earnings are forecast to grow faster than the US market

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

Revenue vs Market: Insufficient data to determine if IPHS's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if IPHS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IPHS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Innophos Holdings performed over the past 5 years?

-18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPHS has high quality earnings.

Growing Profit Margin: IPHS's current net profit margins (2.8%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: IPHS's earnings have declined by -18.5% per year over the past 5 years.

Accelerating Growth: IPHS's earnings growth over the past year (6.5%) exceeds its 5-year average (-18.5% per year).

Earnings vs Industry: IPHS earnings growth over the past year (6.5%) exceeded the Chemicals industry -17%.


Return on Equity

High ROE: IPHS's Return on Equity (6.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Innophos Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: IPHS's short term assets ($342.4M) exceed its short term liabilities ($116.5M).

Long Term Liabilities: IPHS's short term assets ($342.4M) do not cover its long term liabilities ($421.4M).


Debt to Equity History and Analysis

Debt Level: IPHS's debt to equity ratio (101.8%) is considered high.

Reducing Debt: IPHS's debt to equity ratio has increased from 26.8% to 101.8% over the past 5 years.

Debt Coverage: IPHS's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: IPHS's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: IPHS has a high level of physical assets or inventory.

Debt Coverage by Assets: IPHS's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

6.01%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: IPHS's dividend (6.01%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: IPHS's dividend (6.01%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: IPHS's dividends per share have been stable in the past 10 years.

Growing Dividend: IPHS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (176.6%), IPHS's dividend payments are not well 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 Innophos Holdings's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Kim Mink (59yo)

4.1yrs

Tenure

US$3,353,966

Compensation

Dr. Kim Ann Mink, Ph.D., has been the Chief Executive Officer and President at Innophos Holdings Inc. since December 14, 2015. Dr. Mink serves as the President of CanStates Holdings, Inc. She has been a Di ...


CEO Compensation Analysis

Compensation vs Market: Kim's total compensation ($USD3.35M) is above average for companies of similar size in the US market ($USD2.53M).

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


Management Age and Tenure

2.7yrs

Average Tenure

59yo

Average Age

Experienced Management: IPHS's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

63yo

Average Age

Experienced Board: IPHS's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$402,23316 Dec 19
John Steitz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,625
Max PriceUS$31.86

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mark Feuerbach (60yo)

    Interim Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: US$752.26k
  • Kim Mink (59yo)

    Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: US$3.35m
  • James Testa (71yo)

    Assistant Secretary

    • Sherry Duff (51yo)

      Senior VP and Chief Marketing & Technology Officer

      • Tenure: 3.5yrs
      • Compensation: US$724.63k
    • Yasef Murat (64yo)

      Senior Manufacturing Fellow

      • Tenure: 2.7yrs
      • Compensation: US$570.29k
    • Mark Santangelo (61yo)

      Senior Vice President of Manufacturing

      • Tenure: 2.7yrs
      • Compensation: US$776.54k
    • Josh Horenstein (42yo)

      Senior VP

      • Tenure: 3.8yrs
      • Compensation: US$814.35k
    • Amy Hartzell (43yo)

      Senior Vice President of Supply Chain & Purchasing

      • Tenure: 2.7yrs
      • Compensation: US$537.56k
    • William Dunworth (43yo)

      VP, Corporate Controller & Chief Accounting Officer

      • Tenure: 1.3yrs

    Board Members

    • John Steitz (60yo)

      Independent Director

      • Tenure: 10.9yrs
      • Compensation: US$209.64k
    • Karen Osar (70yo)

      Independent Director

      • Tenure: 12.3yrs
      • Compensation: US$198.19k
    • Gary Cappeline (69yo)

      Independent Director

      • Tenure: 13yrs
      • Compensation: US$234.82k
    • Bob Zatta (69yo)

      Independent Director

      • Tenure: 4yrs
      • Compensation: US$208.05k
    • Peter Thomas (63yo)

      Lead Independent Director

      • Tenure: 1.8yrs
      • Compensation: US$218.76k
    • Linda Myrick (63yo)

      Independent Director

      • Tenure: 13.3yrs
      • Compensation: US$188.92k
    • Kim Mink (59yo)

      Chairman of the Board

      • Tenure: 4.1yrs
      • Compensation: US$3.35m
    • Jane Hilk (59yo)

      Director

      • Tenure: 1.2yrs
      • Compensation: US$10.87k

    Company Information

    Innophos Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Innophos Holdings, Inc.
    • Ticker: IPHS
    • Exchange: NasdaqGS
    • Founded: 2004
    • Industry: Specialty Chemicals
    • Sector: Materials
    • Market Cap: US$625.875m
    • Shares outstanding: 19.58m
    • Website: https://www.innophos.com

    Number of Employees


    Location

    • Innophos Holdings, Inc.
    • 259 Prospect Plains Road
    • Cranbury
    • New Jersey
    • 8512
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    IPHSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2006
    HQ9DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2006
    IPHS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2006

    Biography

    Innophos Holdings, Inc., together with its subsidiaries, produces specialty ingredients with applications in food, health, nutrition, and industrial markets. It operates through three segments: Food, Health and Nutrition; Industrial Specialties; and Other. The company’s specialty ingredients include specialty phosphate products, specialty phosphoric acids, as well as other mineral, enzyme, and botanical based specialty ingredients that are used as flavor enhancers in beverages; electrolytes in sports drinks; texture modifiers in cheeses; leavening agents in baked goods; calcium and phosphorus fortification in food and beverages; moisture and color retention in seafood, poultry, and meat; excipients in vitamins, minerals, nutritional supplements, and pharmaceuticals; and abrasives in toothpaste. It also provides food and technical grade purified phosphoric acid (PPA) used in the production of phosphate salts, as well as in food and beverages, and water treatment applications; technical grade sodium tripolyphosphate (STPP), a specialty phosphate, which is used as an ingredient in cleaning products, such as industrial and institutional cleaners, automatic dishwashing detergents, and consumer laundry detergents, as well as in water treatment, clay processing, and copper ore processing activities; and detergent grade PPA that is primarily used in the production of STPP. In addition, the company offers granular triple super-phosphate (GTSP), a fertilizer product line used for enhancing crop yields in various agricultural sectors; and merchant green phosphoric acid. It serves primarily consumer goods manufacturers, distributors, and specialty chemical manufacturers in the United States, Canada, Mexico, and internationally. Innophos Holdings, Inc. was founded in 2004 and is headquartered in Cranbury, New Jersey. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 00:08
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    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.