INNOSPEC INC (IOSP) Stock Fundamental Analysis
USA - NASDAQ:IOSP - US45768S1050 - Common Stock
75.22 USD
-1.09 (-1.43%)
75.22 USD
0 (0%)
Taking everything into account, IOSP scores 5 out of 10 in our fundamental rating. IOSP was compared to 82 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 it does not seem to be growing.
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.
IOSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IOSP has a Return On Assets of 1.07%. This is comparable to the rest of the industry: IOSP outperforms 54.88% of its industry peers.
IOSP's Return On Equity of 1.49% is in line compared to the rest of the industry. IOSP outperforms 51.22% of its industry peers.
IOSP's Return On Invested Capital of 9.23% is fine compared to the rest of the industry. IOSP outperforms 79.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IOSP is above the industry average of 6.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 1.49% | ||
| ROIC | 9.23% |
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 has a Profit Margin (1.08%) which is in line with its industry peers.
In the last couple of years the Profit Margin of IOSP has declined.
The Operating Margin of IOSP (9.11%) is comparable to the rest of the industry.
IOSP's Operating Margin has been stable in the last couple of years.
IOSP has a Gross Margin (28.40%) which is in line with its industry peers.
In the last couple of years the Gross Margin of IOSP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.11% | ||
| PM (TTM) | 1.08% | ||
| GM | 28.4% |
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
IOSP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
There is no outstanding debt for IOSP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
IOSP has an Altman-Z score of 4.76. This indicates that IOSP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.76, IOSP belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
There is no outstanding debt for IOSP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.76 |
ROIC/WACC1.07
WACC8.66%
2.3 Liquidity
A Current Ratio of 2.87 indicates that IOSP has no problem at all paying its short term obligations.
IOSP has a better Current ratio (2.87) than 80.49% of its industry peers.
A Quick Ratio of 1.88 indicates that IOSP should not have too much problems paying its short term obligations.
IOSP has a Quick ratio of 1.88. This is in the better half of the industry: IOSP outperforms 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
IOSP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.68%.
The Earnings Per Share has been growing slightly by 2.75% on average over the past years.
Looking at the last year, IOSP shows a decrease in Revenue. The Revenue has decreased by -5.45% in the last year.
IOSP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.05% yearly.
EPS 1Y (TTM)-15.68%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-9.35%
Revenue 1Y (TTM)-5.45%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%1.08%
3.2 Future
The Earnings Per Share is expected to grow by 1.94% on average over the next years.
The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y-9.9%
EPS Next 2Y1.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.4%
Revenue Next 2Y2.78%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.58, IOSP is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of IOSP indicates a somewhat cheap valuation: IOSP is cheaper than 73.17% of the companies listed in the same industry.
IOSP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
IOSP is valuated correctly with a Price/Forward Earnings ratio of 12.06.
Based on the Price/Forward Earnings ratio, IOSP is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
IOSP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
71.95% of the companies in the same industry are more expensive than IOSP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IOSP indicates a somewhat cheap valuation: IOSP is cheaper than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.94 | ||
| EV/EBITDA | 7.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.94
EPS Next 2Y1.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IOSP has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
IOSP's Dividend Yield is a higher than the industry average which is at 3.69.
Compared to an average S&P500 Dividend Yield of 2.30, IOSP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.78%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
210.36% 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.
DP210.36%
EPS Next 2Y1.94%
EPS Next 3YN/A
75.22
-1.09 (-1.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.5%
Inst Owner Change-0.66%
Ins Owners1%
Ins Owner Change-0.29%
Market Cap1.87B
Revenue(TTM)1.79B
Net Income(TTM)19.30M
Analysts82.22
Price Target114.75 (52.55%)
Short Float %2.36%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend1.56
Dividend Growth(5Y)8.78%
DP210.36%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.1%
Min EPS beat(2)-2.48%
Max EPS beat(2)-1.73%
EPS beat(4)1
Avg EPS beat(4)0.67%
Min EPS beat(4)-2.48%
Max EPS beat(4)8.85%
EPS beat(8)4
Avg EPS beat(8)3.23%
EPS beat(12)6
Avg EPS beat(12)3.75%
EPS beat(16)10
Avg EPS beat(16)7.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-6.47%
Max Revenue beat(2)-1.84%
Revenue beat(4)1
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-6.47%
Max Revenue beat(4)2.28%
Revenue beat(8)2
Avg Revenue beat(8)-3.24%
Revenue beat(12)5
Avg Revenue beat(12)-1.57%
Revenue beat(16)9
Avg Revenue beat(16)0.96%
PT rev (1m)-2.17%
PT rev (3m)-2.17%
EPS NQ rev (1m)-7.33%
EPS NQ rev (3m)-12.38%
EPS NY rev (1m)-1.67%
EPS NY rev (3m)-4.96%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 12.06 | ||
| P/S | 1.04 | ||
| P/FCF | 25.94 | ||
| P/OCF | 13.65 | ||
| P/B | 1.44 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)5.54
EY7.37%
EPS(NY)6.24
Fwd EY8.29%
FCF(TTM)2.9
FCFY3.85%
OCF(TTM)5.51
OCFY7.32%
SpS72.12
BVpS52.17
TBVpS33
PEG (NY)N/A
PEG (5Y)4.94
Graham Number80.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 1.49% | ||
| ROCE | 11.11% | ||
| ROIC | 9.23% | ||
| ROICexc | 11.28% | ||
| ROICexgc | 18.67% | ||
| OM | 9.11% | ||
| PM (TTM) | 1.08% | ||
| GM | 28.4% | ||
| FCFM | 4.02% |
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%
ROICexgc growth 3Y13.46%
ROICexgc 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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 147.27% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.02% | ||
| Profit Quality | 373.06% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 4.76 |
F-Score6
WACC8.66%
ROIC/WACC1.07
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)-15.68%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-9.35%
EPS Next Y-9.9%
EPS Next 2Y1.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.45%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%1.08%
Revenue Next Year-1.4%
Revenue Next 2Y2.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.06%
EBIT growth 3Y10.9%
EBIT growth 5Y3.46%
EBIT Next Year15.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-44.95%
FCF growth 3Y31.21%
FCF growth 5Y-1.32%
OCF growth 1Y-29.85%
OCF growth 3Y25.56%
OCF growth 5Y2.69%
INNOSPEC INC / IOSP FAQ
Can you provide the ChartMill fundamental rating for INNOSPEC INC?
ChartMill assigns a fundamental rating of 5 / 10 to IOSP.
Can you provide the valuation status for INNOSPEC INC?
ChartMill assigns a valuation rating of 4 / 10 to INNOSPEC INC (IOSP). This can be considered as Fairly Valued.
What is the profitability of IOSP stock?
INNOSPEC INC (IOSP) has a profitability rating of 5 / 10.
Can you provide the financial health for IOSP stock?
The financial health rating of INNOSPEC INC (IOSP) is 8 / 10.
Can you provide the expected EPS growth for IOSP stock?
The Earnings per Share (EPS) of INNOSPEC INC (IOSP) is expected to decline by -9.9% in the next year.