Innospec (IOSP) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: 1.97%
• Average Volume (3M): 196.20K
• Price to Earnings (P/E): 109.6
• Beta (1Y): 1.04
• Revenue Growth: -5.45%
• EPS Growth: -87.13%
• Country: US
• Employees: 2,450
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 1.26
• Shares Outstanding: 24,833,160
• 10 Day Avg. Volume: 225,894
• 30 Day Avg. Volume: 196,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 9.69
• 1Y Price Target: $90.00
• Price Target Upside: 5.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $90.00 ▲(5.86% Upside)

Innospec's overall stock score reflects a stable financial position with strong revenue growth and low leverage, but declining profitability margins and cash flow challenges. The technical analysis suggests a bearish trend, and the high P/E ratio indicates overvaluation. The earnings call highlighted mixed results, with some operational successes but also significant challenges.

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 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	508.60M	542.90M	591.10M	586.70M	434.90M	342.70M
EBITDA	195.50M	224.60M	200.90M	187.30M	182.10M	92.20M
Net Income	19.30M	35.60M	139.10M	133.00M	93.10M	28.70M
Balance Sheet
Total Assets	1.81B	1.73B	1.71B	1.60B	1.57B	1.40B
Cash, Cash Equivalents and Short-Term Investments	266.60M	289.20M	203.70M	147.10M	141.80M	105.30M
Total Debt	49.30M	44.90M	45.20M	45.30M	35.60M	40.80M
Total Liabilities	504.60M	518.60M	557.80M	563.30M	537.90M	452.50M
Stockholders Equity	1.30B	1.21B	1.15B	1.04B	1.03B	944.90M
Cash Flow
Free Cash Flow	82.80M	143.10M	130.10M	39.40M	54.10M	116.20M
Operating Cash Flow	136.80M	184.50M	207.30M	81.70M	93.20M	145.90M
Investing Cash Flow	-64.40M	-62.00M	-111.80M	-42.10M	-36.20M	-29.70M
Financing Cash Flow	-49.30M	-35.30M	-39.00M	-33.70M	-20.00M	-86.80M

Innospec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 85.02 is above the 20-day moving average (MA) of 82.18, above the 50-day MA of 84.49, and below the 200-day MA of 98.23, indicating a neutral trend. The MACD of -0.90 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 92.37 is Negative, 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
HWKN	74 Outperform	$3.86B	45.50	18.69%	0.40%	9.51%	5.20%
Sector *	68 Neutral	€5.61B	10.57	10.45%	2.98%	-0.05%	-24.86%
KWR	67 Neutral	$2.30B	21.71	-0.52%	1.47%	-3.09%	-106.46%
IOSP	61 Neutral	$2.05B	109.56	1.55%	1.97%	-5.45%	-87.13%
OLN	58 Neutral	$2.26B	41.89	-0.69%	4.05%	1.49%	-105.20%
SSL	57 Neutral	$3.40B	―	-28.05%	2.00%	-4.31%	-1421.83%
ASH	48 Neutral	$2.43B	21.03	-34.43%	2.97%	-11.38%	-690.99%

Innospec Corporate Events

Innospec Shareholders Approve Directors and Compensation

At the annual meeting of Innospec shareholders on May 9, 2025, three Class III directors were elected, and the advisory approval of the company’s executive compensation was passed. Additionally, the appointment of the company’s independent registered public accounting firm for 2025 was ratified, indicating shareholder support for the company’s leadership and financial oversight.

The most recent analyst rating on (IOSP) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Innospec stock, see the IOSP Stock Forecast page.