INNOSPEC INC (IOSP) Stock Fundamental Analysis
NASDAQ:IOSP - Nasdaq - US45768S1050 - Common Stock - Currency: USD
Overall IOSP gets a fundamental rating of 5 out of 10. We evaluated IOSP against 85 industry peers in the Chemicals industry. IOSP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. IOSP has a decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of 2.05%, IOSP is in line with its industry, outperforming 54.12% of the companies in the same industry.
IOSP has a Return On Equity (2.94%) which is in line with its industry peers.
IOSP's Return On Invested Capital of 10.83% is amongst the best of the industry. IOSP outperforms 85.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IOSP is above the industry average of 7.05%.
| 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
IOSP has a Profit Margin of 1.93%. This is comparable to the rest of the industry: IOSP outperforms 48.24% of its industry peers.
IOSP's Profit Margin has declined in the last couple of years.
IOSP has a Operating Margin (9.63%) which is in line with 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.
Compared to 1 year ago, IOSP has more shares outstanding
Compared to 5 years ago, IOSP has more shares outstanding
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
IOSP has an Altman-Z score of 5.23. This indicates that IOSP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IOSP (5.23) is better than 96.47% 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 | 5.23 |
ROIC/WACC1.21
WACC8.93%
2.3 Liquidity
A Current Ratio of 2.58 indicates that IOSP has no problem at all paying its short term obligations.
IOSP's Current ratio of 2.58 is fine compared to the rest of the industry. IOSP outperforms 75.29% of its industry peers.
A Quick Ratio of 1.77 indicates that IOSP should not have too much problems paying its short term obligations.
IOSP has a better Quick ratio (1.77) than 75.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The earnings per share for IOSP have decreased by -1.48% in the last year.
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 -5.31% in the last year.
The Revenue has been growing slightly by 4.05% on average over the past years.
EPS 1Y (TTM)-1.48%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-17.93%
Revenue 1Y (TTM)-5.31%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%-5.64%
3.2 Future
The Earnings Per Share is expected to grow by 6.94% on average over the next years.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y-0.15%
EPS Next 2Y6.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.6%
Revenue Next 2Y5.44%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
IOSP is valuated correctly with a Price/Earnings ratio of 14.97.
The rest of the industry has a similar Price/Earnings ratio as IOSP.
IOSP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.79.
Based on the Price/Forward Earnings ratio of 14.99, the valuation of IOSP can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as IOSP.
IOSP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 14.99 |
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.
Based on the Price/Free Cash Flow ratio, IOSP is valued a bit cheaper than the industry average as 68.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.46 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.45
EPS Next 2Y6.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IOSP has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of IOSP has falen by -21.53%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.85, IOSP has a dividend in line with its industry peers.
IOSP's Dividend Yield is slightly below the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of IOSP is nicely growing with an annual growth rate of 8.78%!
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)8.78%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
108.99% of the earnings are spent on dividend by IOSP. 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 2Y6.94%
EPS Next 3YN/A
89.79
-0.54 (-0.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change0.09%
Ins Owners0.81%
Ins Owner Change7.69%
Market Cap2.26B
Analysts80
Price Target129.2 (43.89%)
Short Float %1.54%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend1.56
Dividend Growth(5Y)8.78%
DP108.99%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)-5.62%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 14.99 | ||
| P/S | 1.22 | ||
| P/FCF | 18.46 | ||
| P/OCF | 12.23 | ||
| P/B | 1.86 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)6
EY6.68%
EPS(NY)5.99
Fwd EY6.67%
FCF(TTM)4.86
FCFY5.42%
OCF(TTM)7.34
OCFY8.18%
SpS73.46
BVpS48.22
TBVpS30.39
PEG (NY)N/A
PEG (5Y)5.45
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 | 5.23 |
F-Score5
WACC8.93%
ROIC/WACC1.21
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)-1.48%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-17.93%
EPS Next Y-0.15%
EPS Next 2Y6.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.31%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%-5.64%
Revenue Next Year3.6%
Revenue Next 2Y5.44%
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%