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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IOSP had positive earnings in the past year.
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 (2.05%) which is in line with its industry peers.
IOSP has a Return On Equity of 2.94%. This is comparable to the rest of the industry: IOSP outperforms 49.41% of its industry peers.
IOSP has a Return On Invested Capital of 10.83%. This is amongst the best in the industry. IOSP outperforms 87.06% of its industry peers.
IOSP had an Average Return On Invested Capital over the past 3 years of 11.29%. This is above the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 2.94% | ||
| ROIC | 10.83% |
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
With a Profit Margin value of 1.93%, IOSP perfoms like the industry average, outperforming 50.59% of the companies in the same industry.
IOSP's Profit Margin has declined in the last couple of years.
IOSP has a Operating Margin of 9.63%. This is comparable to the rest of the industry: IOSP outperforms 51.76% of its industry peers.
IOSP's Operating Margin has been stable in the last couple of years.
The Gross Margin of IOSP (29.42%) is comparable to the rest of the 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 | 9.63% | ||
| PM (TTM) | 1.93% | ||
| GM | 29.42% |
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.
The number of shares outstanding for IOSP has been increased compared to 1 year ago.
IOSP has more shares outstanding than it did 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
An Altman-Z score of 5.11 indicates that IOSP is not in any danger for bankruptcy at the moment.
The Altman-Z score of IOSP (5.11) is better than 94.12% 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 | 5.11 |
ROIC/WACC1.18
WACC9.15%
2.3 Liquidity
IOSP has a Current Ratio of 2.58. This indicates that IOSP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IOSP (2.58) is better than 76.47% of its industry peers.
A Quick Ratio of 1.77 indicates that IOSP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.77, IOSP is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.77 |
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%.
The Earnings Per Share has been growing slightly by 2.75% on average over the past years.
The Revenue has decreased by -5.31% in the past year.
The Revenue has been growing slightly by 4.05% on average over the past years.
EPS 1Y (TTM)-12.23%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-18.86%
Revenue 1Y (TTM)-5.31%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%-11.88%
3.2 Future
The Earnings Per Share is expected to grow by 5.15% on average over the next years.
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 2Y5.15%
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
A Price/Earnings ratio of 15.09 indicates a correct valuation of IOSP.
Based on the Price/Earnings ratio, IOSP is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
IOSP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 12.90, the valuation of IOSP can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as IOSP.
IOSP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.09 | ||
| Fwd PE | 12.9 |
4.2 Price Multiples
IOSP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IOSP is cheaper than 63.53% of the companies in the same industry.
IOSP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IOSP is cheaper than 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.59 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.5
EPS Next 2Y5.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IOSP has a Yearly Dividend Yield of 1.95%.
Compared to an average industry Dividend Yield of 3.74, IOSP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, IOSP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
On average, the dividend of IOSP grows each year by 8.78%, which is quite nice.
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
IOSP pays out 108.99% of its income as dividend. This is not a sustainable payout ratio.
The dividend of IOSP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP108.99%
EPS Next 2Y5.15%
EPS Next 3YN/A
85.58
-0.57 (-0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change3.28%
Ins Owners0.81%
Ins Owner Change7.43%
Market Cap2.14B
Analysts82.22
Price Target129.2 (50.97%)
Short Float %1.18%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend1.56
Dividend Growth(5Y)8.78%
DP108.99%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.45%
Min EPS beat(2)-1.96%
Max EPS beat(2)8.85%
EPS beat(4)2
Avg EPS beat(4)2.68%
Min EPS beat(4)-1.96%
Max EPS beat(4)8.85%
EPS beat(8)5
Avg EPS beat(8)5.51%
EPS beat(12)8
Avg EPS beat(12)7.41%
EPS beat(16)12
Avg EPS beat(16)10.79%
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)2.28%
Revenue beat(4)1
Avg Revenue beat(4)-3.34%
Min Revenue beat(4)-11.23%
Max Revenue beat(4)2.28%
Revenue beat(8)3
Avg Revenue beat(8)-2.76%
Revenue beat(12)7
Avg Revenue beat(12)0.81%
Revenue beat(16)11
Avg Revenue beat(16)2.26%
PT rev (1m)-4.4%
PT rev (3m)-4.4%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)-5.05%
EPS NY rev (3m)-10.39%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)-3.63%
Revenue NY rev (3m)-3.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.09 | ||
| Fwd PE | 12.9 | ||
| P/S | 1.16 | ||
| P/FCF | 17.59 | ||
| P/OCF | 11.65 | ||
| P/B | 1.77 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)5.67
EY6.63%
EPS(NY)6.63
Fwd EY7.75%
FCF(TTM)4.86
FCFY5.68%
OCF(TTM)7.34
OCFY8.58%
SpS73.46
BVpS48.22
TBVpS30.39
PEG (NY)N/A
PEG (5Y)5.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 2.94% | ||
| ROCE | 13.03% | ||
| ROIC | 10.83% | ||
| ROICexc | 13.75% | ||
| ROICexgc | 23.58% | ||
| OM | 9.63% | ||
| PM (TTM) | 1.93% | ||
| GM | 29.42% | ||
| FCFM | 6.62% |
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-Score5
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 143.22% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.41% | ||
| Profit Quality | 343.26% | ||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 5.11 |
F-Score5
WACC9.15%
ROIC/WACC1.18
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 2Y5.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.31%
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 1Y9.96%
EBIT growth 3Y10.9%
EBIT growth 5Y3.46%
EBIT Next Year25.27%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-6.07%
FCF growth 3Y31.21%
FCF growth 5Y-1.32%
OCF growth 1Y-11%
OCF growth 3Y25.56%
OCF growth 5Y2.69%