INNOSPEC INC (IOSP) Stock Fundamental Analysis
USA - NASDAQ:IOSP - US45768S1050 - Common Stock
76.46 USD
+2.97 (+4.04%)
76.46 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. While IOSP has a great health rating, its profitability is only average at the moment. IOSP is valued correctly, 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.
In the past 5 years IOSP has always 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 1.07% is in line compared to the rest of the industry. IOSP outperforms 54.88% of its industry peers.
IOSP has a Return On Equity (1.49%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 9.23%, IOSP is doing good in the industry, outperforming 78.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IOSP is significantly above the industry average of 6.22%.
| 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
The Profit Margin of IOSP (1.08%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of IOSP has declined.
IOSP has a Operating Margin of 9.11%. This is comparable to the rest of the industry: IOSP outperforms 51.22% of its industry peers.
In the last couple of years the Operating Margin of IOSP has remained more or less at the same level.
IOSP has a Gross Margin (28.40%) which is in line with its industry peers.
IOSP's Gross Margin has been stable in the last couple of years.
| 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
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.
IOSP has more shares outstanding than it did 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 4.76 indicates that IOSP is not in any danger for bankruptcy at the moment.
The Altman-Z score of IOSP (4.76) is better than 91.46% 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 | 4.76 |
ROIC/WACC1.06
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.87 indicates that IOSP has no problem at all paying its short term obligations.
IOSP's Current ratio of 2.87 is amongst the best of the industry. IOSP outperforms 81.71% 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 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The earnings per share for IOSP have decreased strongly by -16.11% in the last year.
Measured over the past 5 years, IOSP shows a small growth in Earnings Per Share. The EPS has been growing by 2.75% on average per year.
Looking at the last year, IOSP shows a decrease in Revenue. The Revenue has decreased by -5.31% in the last year.
The Revenue has been growing slightly by 4.05% on average over the past years.
EPS 1Y (TTM)-16.11%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-17.04%
Revenue 1Y (TTM)-5.31%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%-0.34%
3.2 Future
IOSP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.94% yearly.
Based on estimates for the next years, IOSP will show a small growth in Revenue. The Revenue will grow by 2.78% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 14.40, the valuation of IOSP can be described as correct.
Based on the Price/Earnings ratio, IOSP is valued a bit cheaper than 68.29% of the companies in the same industry.
IOSP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.06.
A Price/Forward Earnings ratio of 12.26 indicates a correct valuation of IOSP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IOSP indicates a somewhat cheap valuation: IOSP is cheaper than 68.29% of the companies listed in the same industry.
IOSP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IOSP indicates a somewhat cheap valuation: IOSP is cheaper than 68.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IOSP is valued a bit cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.37 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.24
EPS Next 2Y1.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.28%, IOSP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.99, IOSP pays a bit more dividend than its industry peers.
IOSP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
On average, the dividend of IOSP grows each year by 8.78%, which is quite nice.
IOSP has paid a dividend for at least 10 years, which is 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
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
76.46
+2.97 (+4.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.5%
Inst Owner Change-1.72%
Ins Owners1%
Ins Owner Change-0.29%
Market Cap1.90B
Revenue(TTM)1.85B
Net Income(TTM)19.30M
Analysts82.22
Price Target109.65 (43.41%)
Short Float %2.36%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)-4.44%
PT rev (3m)-6.52%
EPS NQ rev (1m)-12.4%
EPS NQ rev (3m)-21.29%
EPS NY rev (1m)-1.67%
EPS NY rev (3m)-4.96%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)-2.99%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 12.26 | ||
| P/S | 1.06 | ||
| P/FCF | 26.37 | ||
| P/OCF | 13.88 | ||
| P/B | 1.47 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)5.31
EY6.94%
EPS(NY)6.24
Fwd EY8.16%
FCF(TTM)2.9
FCFY3.79%
OCF(TTM)5.51
OCFY7.21%
SpS72.12
BVpS52.17
TBVpS33
PEG (NY)N/A
PEG (5Y)5.24
Graham Number78.95
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
WACC8.75%
ROIC/WACC1.06
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)-16.11%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-17.04%
EPS Next Y-9.9%
EPS Next 2Y1.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.31%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%-0.34%
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 5 / 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.