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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. IOSP has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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 in line with its industry peers.
IOSP has a Return On Equity (2.14%) which is in line with its industry peers.
The Return On Invested Capital of IOSP (9.95%) is better than 85.88% 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 6.56%.
| 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 55.29% 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.
IOSP has a Gross Margin (28.68%) which 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 | 9.5% | ||
| 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
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.
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 5.00 indicates that IOSP is not in any danger for bankruptcy at the moment.
IOSP has a better Altman-Z score (5.00) 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 |
ROIC/WACC1.09
WACC9.15%
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.
IOSP has a better Current ratio (2.73) than 76.47% of its industry peers.
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.
The Quick ratio of IOSP (1.85) is better than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The earnings per share for IOSP have decreased strongly by -15.68% 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.
The Revenue has decreased by -5.31% in the past 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)-15.68%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-9.35%
Revenue 1Y (TTM)-5.31%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%1.08%
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.
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
Based on the Price/Earnings ratio of 14.97, the valuation of IOSP can be described as correct.
Based on the Price/Earnings ratio, IOSP is valued a bit cheaper than 72.94% of the companies in the same industry.
IOSP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.53, the valuation of IOSP can be described as correct.
Based on the Price/Forward Earnings ratio, IOSP is valued a bit cheaper than 63.53% 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 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IOSP is valued a bit cheaper than the industry average as 69.41% of the companies are valued more expensively.
IOSP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.13 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.45
EPS Next 2Y5.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.03%, IOSP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.71, IOSP has a dividend in line with its industry peers.
IOSP's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 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
143.70% 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.
DP143.7%
EPS Next 2Y5.04%
EPS Next 3YN/A
82.94
-0.53 (-0.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners100.14%
Inst Owner Change-0.1%
Ins Owners0.99%
Ins Owner Change7.43%
Market Cap2.07B
Analysts82.22
Price Target117.3 (41.43%)
Short Float %1.06%
Short Ratio1.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)0%
PT rev (3m)-9.21%
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)-3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 12.53 | ||
| P/S | 1.16 | ||
| P/FCF | 30.13 | ||
| P/OCF | 15.66 | ||
| P/B | 1.64 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)5.54
EY6.68%
EPS(NY)6.62
Fwd EY7.98%
FCF(TTM)2.75
FCFY3.32%
OCF(TTM)5.3
OCFY6.39%
SpS71.55
BVpS50.48
TBVpS32
PEG (NY)N/A
PEG (5Y)5.45
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 | 5 |
F-Score6
WACC9.15%
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)-15.68%
EPS 3Y7.65%
EPS 5Y2.75%
EPS Q2Q%-9.35%
EPS Next Y-5.2%
EPS Next 2Y5.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.31%
Revenue growth 3Y7.55%
Revenue growth 5Y4.05%
Sales Q2Q%1.08%
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%