INNOSPEC INC (IOSP) Stock Fundamental Analysis
NASDAQ:IOSP - Nasdaq - US45768S1050 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to IOSP. IOSP was compared to 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
IOSP had positive earnings in the past year.
IOSP had a positive operating cash flow in the past year.
IOSP had positive earnings in each of the past 5 years.
Each year in the past 5 years IOSP had a positive operating cash flow.
1.2 Ratios
IOSP has a Return On Assets (1.52%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.14%, IOSP is in line with its industry, outperforming 48.24% of the companies in the same industry.
IOSP has a better Return On Invested Capital (9.95%) than 83.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IOSP is above the industry average of 6.83%.
| 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.
The Operating Margin of IOSP (9.50%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of IOSP has remained more or less at the same level.
With a Gross Margin value of 28.68%, IOSP perfoms like the industry average, outperforming 54.12% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IOSP is still 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 4.99 indicates that IOSP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.99, IOSP belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
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 | 4.99 |
ROIC/WACC1.09
WACC9.13%
2.3 Liquidity
IOSP has a Current Ratio of 2.73. This indicates that IOSP is financially healthy and has no problem in meeting 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.
IOSP has a Quick Ratio of 1.85. This is a normal value and indicates that IOSP is financially healthy and should not expect problems in meeting its short term obligations.
IOSP's Quick ratio of 1.85 is fine compared to the rest of the industry. IOSP outperforms 72.94% of its industry peers.
| 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
The Earnings Per Share is expected to grow by 5.04% 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 2Y5.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.74, the valuation of IOSP can be described as correct.
71.76% 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 27.46. IOSP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.62, IOSP is valued correctly.
Based on the Price/Forward Earnings ratio, IOSP is valued a bit cheaper than 65.88% of the companies 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 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IOSP is valued a bit cheaper than 68.24% of the companies in the same industry.
IOSP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.36 | ||
| EV/EBITDA | 8.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.37
EPS Next 2Y5.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IOSP has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
IOSP's Dividend Yield is comparable with the industry average which is at 3.64.
IOSP's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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 143.70% of its income as dividend. 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
83.55
+0.53 (+0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.11%
Inst Owner Change-1.8%
Ins Owners0.99%
Ins Owner Change7.43%
Market Cap2.09B
Analysts82.22
Price Target117.3 (40.39%)
Short Float %1.51%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)-3.63%
PT rev (3m)-13.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.62 | ||
| P/S | 1.17 | ||
| P/FCF | 30.36 | ||
| P/OCF | 15.77 | ||
| P/B | 1.66 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 8.29 |
EPS(TTM)5.67
EY6.79%
EPS(NY)6.62
Fwd EY7.92%
FCF(TTM)2.75
FCFY3.29%
OCF(TTM)5.3
OCFY6.34%
SpS71.55
BVpS50.48
TBVpS32
PEG (NY)N/A
PEG (5Y)5.37
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 | 4.99 |
F-Score6
WACC9.13%
ROIC/WACC1.09
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%