INNOSPEC INC (IOSP)
US45768S1050 - Common Stock
Taking everything into account, IOSP scores 6 out of 10 in our fundamental rating. IOSP was compared to 84 industry peers in the Chemicals industry. IOSP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, IOSP is valued expensive at the moment.
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.
IOSP had positive earnings in each of the past 5 years.
IOSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.15%, IOSP belongs to the best of the industry, outperforming 84.52% of the companies in the same industry.
With a decent Return On Equity value of 12.13%, IOSP is doing good in the industry, outperforming 69.05% of the companies in the same industry.
IOSP's Return On Invested Capital of 9.18% is amongst the best of the industry. IOSP outperforms 80.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IOSP is above the industry average of 7.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 12.13% | ||
| ROIC | 9.18% |
ROA(3y)7.46%
ROA(5y)6.41%
ROE(3y)11.32%
ROE(5y)9.84%
ROIC(3y)9.69%
ROIC(5y)8.76%
1.3 Margins
Looking at the Profit Margin, with a value of 7.14%, IOSP is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
In the last couple of years the Profit Margin of IOSP has grown nicely.
IOSP has a Operating Margin of 8.29%. This is comparable to the rest of the industry: IOSP outperforms 46.43% of its industry peers.
In the last couple of years the Operating Margin of IOSP has declined.
With a decent Gross Margin value of 30.33%, IOSP is doing good in the industry, outperforming 61.90% of the companies in the same industry.
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 | 8.29% | ||
| PM (TTM) | 7.14% | ||
| GM | 30.33% |
OM growth 3Y9.77%
OM growth 5Y-2.72%
PM growth 3Y43.7%
PM growth 5Y4.4%
GM growth 3Y1.83%
GM growth 5Y0.59%
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.
The number of shares outstanding for IOSP has been increased compared to 1 year ago.
Compared to 5 years ago, IOSP has more shares outstanding
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
An Altman-Z score of 5.87 indicates that IOSP is not in any danger for bankruptcy at the moment.
The Altman-Z score of IOSP (5.87) is better than 94.05% of its industry peers.
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 | 5.87 |
ROIC/WACC0.99
WACC9.27%
2.3 Liquidity
IOSP has a Current Ratio of 2.38. This indicates that IOSP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IOSP (2.38) is better than 60.71% of its industry peers.
A Quick Ratio of 1.58 indicates that IOSP should not have too much problems paying its short term obligations.
The Quick ratio of IOSP (1.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
IOSP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.66%.
IOSP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.70% yearly.
Looking at the last year, IOSP shows a decrease in Revenue. The Revenue has decreased by -0.76% in the last year.
IOSP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.70% yearly.
EPS 1Y (TTM)0.66%
EPS 3Y23.67%
EPS 5Y4.7%
EPS growth Q2Q53.33%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y17.77%
Revenue growth 5Y5.7%
Revenue growth Q2Q-3.13%
3.2 Future
Based on estimates for the next years, IOSP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.95% on average per year.
Based on estimates for the next years, IOSP will show a small growth in Revenue. The Revenue will grow by 4.29% on average per year.
EPS Next Y12.55%
EPS Next 2Y10.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.36%
Revenue Next 2Y4.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
IOSP is valuated rather expensively with a Price/Earnings ratio of 19.96.
IOSP's Price/Earnings ratio is in line with the industry average.
IOSP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.73, which indicates a rather expensive current valuation of IOSP.
The rest of the industry has a similar Price/Forward Earnings ratio as IOSP.
The average S&P500 Price/Forward Earnings ratio is at 20.92. IOSP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IOSP is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as IOSP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.24 | ||
| EV/EBITDA | 13.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IOSP may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)4.24
EPS Next 2Y10.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IOSP has a Yearly Dividend Yield of 1.20%.
Compared to an average industry Dividend Yield of 3.31, IOSP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, IOSP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
On average, the dividend of IOSP grows each year by 9.71%, which is quite nice.
IOSP has paid a dividend for at least 10 years, which is 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)9.71%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
25.23% of the earnings are spent on dividend by IOSP. This is a low number and sustainable payout ratio.
IOSP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP25.23%
EPS Next 2Y10.95%
EPS Next 3YN/A
INNOSPEC INC
NASDAQ:IOSP (5/2/2024, 8:37:53 AM)
121.55
+1.11 (+0.92%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 17.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.59
PEG (5Y)4.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 12.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.29% | ||
| PM (TTM) | 7.14% | ||
| GM | 30.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.66%
EPS 3Y23.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y17.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y