Innospec (IOSP) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: 2.29%
• Average Volume (3M): 227.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• 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: 24,777,582
• 10 Day Avg. Volume: 318,609
• 30 Day Avg. Volume: 227,182
• 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: 0.92
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: 9.94
• 1Y Price Target: $93.00
• Price Target Upside: 24.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.05
• Revenue Forecast (FY): $1.78B

• Rating: 49 Neutral
• Price Target: $74.00 ▼(-0.74% 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.

Positive Factors

Strong Cash Position

A strong cash position with no debt provides Innospec with significant financial flexibility for strategic initiatives, such as M&A, organic growth, and shareholder returns, supporting long-term business stability.

Fuel Specialties Growth

The continued growth in Fuel Specialties indicates robust demand and operational efficiency, contributing positively to Innospec's revenue and margin sustainability over the long term.

Dividend Increase

Increasing dividends reflect confidence in future cash flows and profitability, enhancing shareholder value and indicating a commitment to returning capital to investors.

Negative Factors

Declining Revenue

Declining revenue growth poses a challenge to Innospec's market position and long-term financial health, necessitating strategic adjustments to reverse the trend and sustain competitiveness.

Performance Chemicals Margin Decline

The significant margin decline in Performance Chemicals suggests cost pressures and product mix issues, which could impact profitability if not addressed through cost management or product strategy.

Oilfield Services Revenue Drop

A decline in Oilfield Services revenue highlights sector-specific challenges and could affect Innospec's overall revenue mix and growth prospects if the trend continues.

Innospec Business Overview & Revenue Model

Company Description

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties segment offers a range of specialty chemical products that are used as additives in various fuels. This segment's products are used in the operation of automotive, marine, and aviation engines; power station generators; and heating oil. Its Performance Chemicals segment provides technology-based solutions for its customers' processes or products that focuses on the personal care, home care, agrochemical, and metal extraction markets. The company's Oilfield Services segment develops and markets chemical solutions for fracturing, stimulation, and completion operations; and products for oil and gas production, as well as products to prevent loss of mud in drilling operations. It sells its products primarily to oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, personal care and home care companies, formulators of agrochemical and metal extraction formulations, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.

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's financial performance is challenged by declining revenue and profitability, with a negative revenue growth rate and net profit margin. The balance sheet is stable with low leverage, but cash flow management needs improvement, particularly in generating free cash flow.

Income Statement

Innospec's income statement shows a declining trend in revenue with a negative revenue growth rate of -8.4% TTM. The gross profit margin is moderate at 28%, but the net profit margin is negative, indicating a loss. EBIT and EBITDA margins are also low, reflecting operational challenges. The company needs to address profitability issues to improve its financial health.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.035, indicating low leverage. However, the return on equity is negative, reflecting the company's recent losses. The equity ratio is healthy, suggesting a stable asset base. Overall, the balance sheet shows financial stability but highlights the need for improved profitability.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth at -44.3% TTM, which is concerning. The operating cash flow to net income ratio is positive, indicating some operational cash generation. However, the free cash flow to net income ratio suggests challenges in converting earnings into cash. The company needs to enhance cash flow management.

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	171.70M	224.60M	200.90M	227.40M	173.00M	87.50M
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	496.50M	518.60M	557.80M	563.30M	537.90M	452.50M
Stockholders Equity	1.30B	1.21B	1.15B	1.04B	1.03B	944.40M
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: Positive
• Last Price: 74.55
• 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 Positive. The current price of 74.55 is above the 20-day moving average (MA) of 72.83, below the 50-day MA of 74.60, and below the 200-day MA of 84.48, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 57.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%	0.76%	-2.53%	-100.23%
SCL	62 Neutral	$1.03B	22.97	3.67%	3.41%	5.35%	-1.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KWR	58 Neutral	$2.40B	―	-0.64%	1.54%	0.08%	-107.33%
ASH	54 Neutral	$2.40B	―	-34.45%	3.40%	-13.67%	-608.89%
IOSP	49 Neutral	$1.85B	―	-0.09%	2.29%	-4.49%	-100.80%
NGVT	48 Neutral	$1.88B	―	-38.91%	―	-13.39%	88.25%

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.