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 decent growth rate and is not valued too expensively.
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.
In the past 5 years IOSP always reported a positive cash flow from operatings.
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.
The Return On Equity of IOSP (2.94%) is comparable to the rest of the industry.
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 7.01%.
| 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
IOSP's Profit Margin of 1.93% is in line compared 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 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's Gross Margin of 29.42% is in line compared to the rest of the industry. IOSP outperforms 56.47% of its industry peers.
IOSP's Gross Margin has been stable in the last couple of years.
| 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.
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
An Altman-Z score of 5.11 indicates that IOSP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.11, IOSP belongs to the best of the industry, outperforming 96.47% 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 | 5.11 |
ROIC/WACC1.21
WACC8.98%
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.
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.
With a decent Quick ratio value of 1.77, IOSP is doing good in 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
The earnings per share for IOSP have decreased by -1.48% 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)-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.
IOSP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.32, the valuation of IOSP can be described as correct.
Based on the Price/Earnings ratio, IOSP is valued a bit cheaper than 62.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. IOSP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.34, IOSP is valued correctly.
IOSP's Price/Forward Earnings is on the same level as the industry average.
IOSP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
IOSP's Enterprise Value to EBITDA ratio is in line with the industry average.
IOSP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IOSP is cheaper than 68.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.66 | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.22
EPS Next 2Y6.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, IOSP has a reasonable but not impressive dividend return.
The stock price of IOSP dropped by -24.94% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
IOSP's Dividend Yield is comparable with the industry average which is at 4.02.
IOSP's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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
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
85.92
+0.44 (+0.51%)
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 Cap2.16B
Analysts80
Price Target135.15 (57.3%)
Short Float %1.23%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 | 14.32 | ||
| Fwd PE | 14.34 | ||
| P/S | 1.17 | ||
| P/FCF | 17.66 | ||
| P/OCF | 11.7 | ||
| P/B | 1.78 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)6
EY6.98%
EPS(NY)5.99
Fwd EY6.97%
FCF(TTM)4.86
FCFY5.66%
OCF(TTM)7.34
OCFY8.55%
SpS73.46
BVpS48.22
TBVpS30.39
PEG (NY)N/A
PEG (5Y)5.22
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
WACC8.98%
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%