Innospec (IOSP) AI Stock Analysis

• Market Cap: $1.79B
• Dividend Yield: 2.22%
• Average Volume (3M): 190.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -4.49%
• EPS Growth: -100.80%
• Country: US
• Employees: 2,450
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.12
• Shares Outstanding: 24,833,160
• 10 Day Avg. Volume: 183,370
• 30 Day Avg. Volume: 190,023
• PEG Ratio: -1.04
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 19.18
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 106.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.07
• Revenue Forecast (FY): $1.79B

• Rating: 49 Neutral
• Price Target: $74.00 ▼(-0.52% Downside)

Innospec's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. Technical analysis indicates bearish momentum, and the valuation is unattractive due to recent losses. The earnings call provided some positive insights, particularly in Fuel Specialties, but overall, the company faces significant hurdles.

Innospec Business Overview & Revenue Model

Company Description

Innospec Inc. is a global specialty chemicals company that operates primarily in the personal care, fuel additives, and oilfield services sectors. The company develops and supplies a wide range of products, including performance chemicals for personal care formulations, fuel additives that enhance engine performance and reduce emissions, and surfactants for oilfield applications. Innospec is committed to innovation and sustainability, providing tailored solutions to meet the evolving needs of its customers across various industries.

How the Company Makes Money

Innospec generates revenue through the sale of its specialty chemical products across several key sectors. The primary revenue streams include the personal care segment, where the company sells ingredients and formulations for cosmetics and skincare products; the fuel additives segment, which offers products that improve fuel efficiency and reduce harmful emissions in automotive and industrial applications; and the oilfield services segment, providing chemicals that enhance extraction processes and improve oil recovery. Significant partnerships with major companies in these industries bolster Innospec's market presence and contribute to its earnings. Moreover, the company's focus on innovation and sustainability helps it to command premium pricing for its advanced and eco-friendly products, further enhancing its profitability.

Innospec Financial Statement Overview

Summary

Innospec demonstrates a stable financial position with strong revenue growth and low leverage. However, profitability margins have declined, and there are some challenges in cash flow management. The company shows potential for growth, but needs to address profitability and cash flow efficiency to enhance overall financial health.

Income Statement

Innospec's income statement reveals a mixed performance. The TTM data shows a gross profit margin of 28.68%, which is slightly below the previous year's 29.42%. The net profit margin has decreased to 1.51% from 1.93% in the previous year, indicating reduced profitability. However, the company has shown a strong revenue growth rate of 26.3% in the TTM, recovering from a decline in the previous year. The EBIT and EBITDA margins have also decreased, reflecting potential operational challenges.

Balance Sheet

The balance sheet of Innospec is relatively strong, with a low debt-to-equity ratio of 0.03 in the TTM, indicating low leverage and financial stability. The return on equity (ROE) is modest at 2.96%, showing a slight improvement from the previous year. The equity ratio stands at 78.14%, suggesting a solid equity base relative to total assets. Overall, the balance sheet reflects financial stability with low risk.

Cash Flow

Innospec's cash flow statement shows a positive trend in free cash flow growth at 9.52% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 131.9, suggesting efficient cash conversion. However, the free cash flow to net income ratio has decreased to 57.32%, which may indicate some challenges in maintaining cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.79B	1.85B	1.95B	1.96B	1.48B	1.19B
Gross Profit	501.20M	542.90M	591.10M	586.70M	434.90M	342.70M
EBITDA	15.90M	89.50M	200.90M	231.80M	182.10M	92.20M
Net Income	-1.20M	35.60M	139.10M	133.00M	93.10M	28.70M
Balance Sheet
Total Assets	1.80B	1.73B	1.71B	1.60B	1.57B	1.40B
Cash, Cash Equivalents and Short-Term Investments	270.80M	289.20M	203.70M	147.10M	141.80M	105.30M
Total Debt	49.00M	44.90M	45.20M	45.30M	35.60M	40.80M
Total Liabilities	403.20M	518.60M	557.80M	563.30M	537.90M	452.50M
Stockholders Equity	1.40B	1.21B	1.15B	1.04B	1.03B	944.90M
Cash Flow
Free Cash Flow	46.10M	143.10M	145.20M	39.40M	54.10M	116.20M
Operating Cash Flow	102.60M	184.50M	207.30M	81.70M	93.20M	145.90M
Investing Cash Flow	-76.50M	-62.00M	-111.80M	-42.10M	-36.20M	-29.70M
Financing Cash Flow	-61.10M	-35.30M	-39.00M	-33.70M	-20.00M	-86.80M

Innospec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOSP, the sentiment is Negative. The current price of 74.39 is above the 20-day moving average (MA) of 74.36, below the 50-day MA of 78.43, and below the 200-day MA of 88.22, indicating a bearish trend. The MACD of -1.31 indicates Negative momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 36.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IOSP.

Innospec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTX	62 Neutral	$1.73B	-2,090.60	-0.09%	0.80%	-2.53%	-100.23%
SCL	62 Neutral	$992.86M	22.21	3.67%	3.49%	5.35%	-1.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KWR	58 Neutral	$2.25B	―	-0.64%	1.49%	0.08%	-107.33%
IOSP	49 Neutral	$1.79B	―	-0.09%	2.22%	-4.49%	-100.80%
NGVT	48 Neutral	$1.92B	―	-38.91%	―	-13.40%	88.39%
ASH	46 Neutral	$2.19B	―	-34.45%	3.23%	-13.67%	―

Innospec Corporate Events

Innospec Reports Mixed Q3 2025 Financial Results

Innospec Inc. is an international specialty chemicals company that provides innovative chemical solutions across various sectors, including fuel specialties, performance chemicals, and oilfield services. The company operates globally, serving markets in the Americas, Europe, the Middle East, Africa, and Asia-Pacific.

Innospec’s Earnings Call: Mixed Results and Future Outlook

Innospec’s recent earnings call painted a picture of a mixed quarter, highlighting strong performance in Fuel Specialties and a robust cash position, but also revealing challenges in Performance Chemicals and Oilfield Services. The company faced declining margins and revenues in some segments, alongside significant charges that impacted net income and earnings per share (EPS).

Innospec Reports Q3 2025 Financial Results and Dividend Increase

Innospec Inc. announced its financial results for the third quarter of 2025, reporting total revenues of $441.9 million, slightly down from $443.4 million the previous year. The company declared a semi-annual dividend of $0.87 per share, marking a 10% increase over 2024, and highlighted strong cash flow generation of $39.3 million from operations. Despite facing lower-than-expected results in some business segments, Innospec remains focused on growth in performance chemicals and oilfield services, with a net cash improvement to $270.8 million.

The most recent analyst rating on (IOSP) stock is a Hold with a $78.00 price target. To see the full list of analyst forecasts on Innospec stock, see the IOSP Stock Forecast page.

Innospec’s Earnings Call: Mixed Sentiments and Strategic Plans

Innospec’s recent earnings call painted a mixed picture of the company’s current financial health and future prospects. While there were significant achievements in the Fuel Specialties segment and a robust cash position, the overall sentiment was tempered by challenges such as decreased gross margins, a decline in net income, and ongoing issues in the Performance Chemicals and Oilfield Services segments. Additionally, the lack of activity resumption in Latin America further clouded the outlook.

Innospec’s Q2 2025: Revenue Growth Amid Profit Decline

Innospec Inc. is a global specialty chemicals company that provides innovative solutions across various sectors, including personal care, fuel additives, and oilfield services. The company operates in multiple regions worldwide, focusing on enhancing fuel efficiency and engine performance while reducing emissions.