IOSP
INNOSPEC INC.
Materials • CIK: 0001054905
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Market Cap
$1.90B
P/E (TTM)
16.4x
Rev Growth (TTM)
-3.7%
Net Margin (TTM)
6.6%
FCF Yield (TTM)
7.3%
FCF Margin (TTM)
7.8%
Cash Flow Health
Free Cash Flow8/8 positive
TTM$138M
Q4 '25
$61M+56%
Q3 '25
$39M+323%
FCF Margin
TTM7.8%
Q4 '2513.5%+52%
Sector: 0.8%Above Avg
OCF Margin7.8%
OCF/NI1.19x
CapEx Coverage–
FCF Yield7.3%
FCF Growth (2Y)+19%
Cash Conversion Cycle
117 days
DSO: 70+DIO: 93−DPO: 46
Capital Allocation & Returns
Growth Focused
Total Shareholder YieldTTM
TTM1.3%
Div Yield0.0%
+Buyback (TTM)1.3%
Prioritizing reinvestment over distributions
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$138.3M
Stock Repurchases (TTM)$23.9M
Capital Return / FCF17.3%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
7.7%
Stable
-0.3% YoY-3.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
6.1%
8Q: 6.9%
Asset Turnover
0.99x
8Q: 1.01x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 6.1% ≈ 7.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.30x
8Q:6.45x
-80.7%
Invested Cap Turn
1.25x
8Q:1.30x
-22.7%
Depreciation Rate Trend
⚠ Declining -2.0%
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $1.8B | $455.6M↑3.1% | $441.9M↑0.5% | $439.7M↓0.2% | $440.8M↓5.6% | $466.8M↑5.3% | $443.4M↑1.9% | $435.0M↓13.0% | $500.2M |
Operating Income | $129.5M | $46.8M↑693.2% | $5.9M↓82.8% | $34.3M↓19.3% | $42.5M↑3.4% | $41.1M↓9.9% | $45.6M↑12.0% | $40.7M↓19.4% | $50.5M |
Net Income | $116.6M | $47.4M↑267.4% | $12.9M↓45.1% | $23.5M↓28.4% | $32.8M↑146.6% | $-70.4M↓310.8% | $33.4M↑7.1% | $31.2M↓24.6% | $41.4M |
Operating Cash Flow | $138.3M | $61.4M↑56.2% | $39.3M↑322.6% | $9.3M↓67.1% | $28.3M↑10.1% | $25.7M↓65.0% | $73.5M↑1463.8% | $4.7M↓94.2% | $80.6M |
Free Cash Flow | $138.3M | $61.4M↑56.2% | $39.3M↑322.6% | $9.3M↓67.1% | $28.3M↑10.1% | $25.7M↓65.0% | $73.5M↑1463.8% | $4.7M↓94.2% | $80.6M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
16.4x
Volatile
8Q: 81.0x+924%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
16.4x
vs – sector
Cash Flow
11.7x
EV/FCF vs –
Growth-Adj
0.1xPEG
Undervalued for growth
Quality-Adj
2.1P/E per %ROIC
ROIC: 7.7%
Shareholder Returns
Dividend
–
Buyback
1.3%
Total Yield
1.3%
Market Cap$1.90B
EV$1.62B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
72/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Above Avg
9.1%
8Q:–
Return on Invested Capital (ROIC)Top 25%
7.7%
8Q:–
-3.2%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 6.1%
Asset Turnover: 0.99x
Earnings Quality
Cash Conversion
1.19x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin27.7%
Capital Efficiency
Invested Capital Turnover1.25x
Working Capital
Cash Conversion Cycle117 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
56/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
-3.7%
OpInc Growth YoY
13.9%
EPS Growth YoY
229.6%
FCF 3Y CAGR
19.2%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
27.7%
Operating
7.3%
Below Avg in sector
Net
6.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+1.2 pts
FCF: 7.8% | Net: 6.6%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $292.50M
Interest Coverage
–
+Net cash position: $292.50M
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis