INNOSPEC INC (IOSP) Stock Fundamental Analysis
NASDAQ:IOSP - Nasdaq - US45768S1050 - Common Stock - Currency: USD
IOSP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. IOSP has an excellent financial health rating, but there are some minor concerns on its profitability. IOSP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year IOSP was profitable.
In the past year IOSP had a positive cash flow from operations.
Each year in the past 5 years IOSP has been profitable.
In the past 5 years IOSP always reported a positive cash flow from operatings.
1.2 Ratios
IOSP's Return On Assets of 1.52% is in line compared to the rest of the industry. IOSP outperforms 54.12% of its industry peers.
IOSP has a Return On Equity (2.14%) which is in line with its industry peers.
IOSP has a Return On Invested Capital of 9.95%. This is amongst the best in the industry. IOSP outperforms 83.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IOSP is above the industry average of 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.52% | ||
| ROE | 2.14% | ||
| ROIC | 9.95% |
ROA(3y)6.16%
ROA(5y)5.29%
ROE(3y)9.29%
ROE(5y)7.99%
ROIC(3y)11.29%
ROIC(5y)9.61%
1.3 Margins
IOSP's Profit Margin of 1.51% is in line compared to the rest of the industry. IOSP outperforms 51.76% of its industry peers.
IOSP's Profit Margin has declined in the last couple of years.
IOSP has a Operating Margin of 9.50%. This is comparable to the rest of the industry: IOSP outperforms 54.12% of its industry peers.
IOSP's Operating Margin has been stable in the last couple of years.
IOSP has a Gross Margin of 28.68%. This is comparable to the rest of the industry: IOSP outperforms 54.12% of its industry peers.
IOSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 1.51% | ||
| GM | 28.68% |
OM growth 3Y3.11%
OM growth 5Y-0.56%
PM growth 3Y-32.51%
PM growth 5Y-23.61%
GM growth 3Y0.12%
GM growth 5Y-0.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IOSP is creating some value.
IOSP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for IOSP has been increased compared to 5 years ago.
IOSP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.03 indicates that IOSP is not in any danger for bankruptcy at the moment.
IOSP has a better Altman-Z score (5.03) than 94.12% of its industry peers.
IOSP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.11
WACC8.93%
2.3 Liquidity
A Current Ratio of 2.73 indicates that IOSP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.73, IOSP is in the better half of the industry, outperforming 78.82% of the companies in the same industry.
A Quick Ratio of 1.85 indicates that IOSP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.85, IOSP is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
IOSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.23%.
IOSP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.75% yearly.
Looking at the last year, IOSP shows a decrease in Revenue. The Revenue has decreased by -7.91% in the last year.
Measured over the past years, IOSP shows a small growth in Revenue. The Revenue has been growing by 4.05% on average per year.
EPS 1Y (TTM)-12.23%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-18.86%
Revenue 1Y (TTM)-7.91%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%-11.88%
3.2 Future
Based on estimates for the next years, IOSP will show a small growth in Earnings Per Share. The EPS will grow by 5.04% on average per year.
IOSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.72% yearly.
EPS Next Y-5.2%
EPS Next 2Y5.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.16%
Revenue Next 2Y3.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.83, the valuation of IOSP can be described as correct.
70.59% of the companies in the same industry are more expensive than IOSP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.15. IOSP is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.70, which indicates a correct valuation of IOSP.
IOSP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IOSP is cheaper than 65.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, IOSP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
67.06% of the companies in the same industry are more expensive than IOSP, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as IOSP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.55 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.4
EPS Next 2Y5.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IOSP has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.69, IOSP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, IOSP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of IOSP is nicely growing with an annual growth rate of 8.78%!
IOSP has been paying a dividend for at least 10 years, so it has a reliable track record.
IOSP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.78%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
143.70% of the earnings are spent on dividend by IOSP. This is not a sustainable payout ratio.
IOSP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP143.7%
EPS Next 2Y5.04%
EPS Next 3YN/A
84.09
-0.19 (-0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change3.34%
Ins Owners0.99%
Ins Owner Change7.43%
Market Cap2.10B
Analysts82.22
Price Target117.3 (39.49%)
Short Float %1.03%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend1.56
Dividend Growth(5Y)8.78%
DP143.7%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.56%
Min EPS beat(2)-1.73%
Max EPS beat(2)8.85%
EPS beat(4)1
Avg EPS beat(4)1.1%
Min EPS beat(4)-1.96%
Max EPS beat(4)8.85%
EPS beat(8)4
Avg EPS beat(8)3.3%
EPS beat(12)7
Avg EPS beat(12)5.11%
EPS beat(16)11
Avg EPS beat(16)10.34%
Revenue beat(2)1
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-6.47%
Max Revenue beat(2)2.28%
Revenue beat(4)1
Avg Revenue beat(4)-4.27%
Min Revenue beat(4)-11.23%
Max Revenue beat(4)2.28%
Revenue beat(8)2
Avg Revenue beat(8)-3.64%
Revenue beat(12)6
Avg Revenue beat(12)-1.1%
Revenue beat(16)10
Avg Revenue beat(16)1.31%
PT rev (1m)-9.21%
PT rev (3m)-13.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 12.7 | ||
| P/S | 1.18 | ||
| P/FCF | 30.55 | ||
| P/OCF | 15.88 | ||
| P/B | 1.67 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)5.67
EY6.74%
EPS(NY)6.62
Fwd EY7.87%
FCF(TTM)2.75
FCFY3.27%
OCF(TTM)5.3
OCFY6.3%
SpS71.55
BVpS50.48
TBVpS32
PEG (NY)N/A
PEG (5Y)5.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.52% | ||
| ROE | 2.14% | ||
| ROCE | 11.98% | ||
| ROIC | 9.95% | ||
| ROICexc | 12.62% | ||
| ROICexgc | 21.49% | ||
| OM | 9.5% | ||
| PM (TTM) | 1.51% | ||
| GM | 28.68% | ||
| FCFM | 3.85% |
ROA(3y)6.16%
ROA(5y)5.29%
ROE(3y)9.29%
ROE(5y)7.99%
ROIC(3y)11.29%
ROIC(5y)9.61%
ROICexc(3y)13.47%
ROICexc(5y)11.26%
ROICexgc(3y)22.5%
ROICexgc(5y)18.82%
ROCE(3y)13.59%
ROCE(5y)11.57%
ROICexcg growth 3Y13.46%
ROICexcg growth 5Y3.02%
ROICexc growth 3Y11.53%
ROICexc growth 5Y3.76%
OM growth 3Y3.11%
OM growth 5Y-0.56%
PM growth 3Y-32.51%
PM growth 5Y-23.61%
GM growth 3Y0.12%
GM growth 5Y-0.92%
F-Score6
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 144.32% | ||
| Cap/Sales | 3.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.86% | ||
| Profit Quality | 254.44% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 5.03 |
F-Score6
WACC8.93%
ROIC/WACC1.11
Cap/Depr(3y)148.38%
Cap/Depr(5y)120.26%
Cap/Sales(3y)3.16%
Cap/Sales(5y)2.92%
Profit Quality(3y)155.47%
Profit Quality(5y)185.88%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.23%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-18.86%
EPS Next Y-5.2%
EPS Next 2Y5.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.91%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%-11.88%
Revenue Next Year-0.16%
Revenue Next 2Y3.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-0.76%
EBIT growth 3Y10.9%
EBIT growth 5Y3.46%
EBIT Next Year19.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.31%
FCF growth 3Y31.21%
FCF growth 5Y-1.32%
OCF growth 1Y-0.23%
OCF growth 3Y25.56%
OCF growth 5Y2.69%