Fact based stock research
Innospec (NasdaqGS:IOSP)
US45768S1050
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Innospec stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 61 (better than 61% compared with investment alternatives), Innospec (Specialty Chemicals, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Innospec are low in value (priced high) with a consolidated Value Rank of 48 (worse than 52% of alternatives). But they show above-average growth (Growth Rank of 71) and are safely financed (Safety Rank of 60, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 61, is a buy recommendation based on Innospec's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Innospec exhibits low value (Obermatt Value Rank of 48), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 71). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 60) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Specialty Chemicals |
| Index | NASDAQ |
| Size class | Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Innospec
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 72 |
|
38 |
|
23 |
|
48 |
|
| GROWTH | ||||||||
| GROWTH | 35 |
|
28 |
|
22 |
|
71 |
|
| SAFETY | ||||||||
| SAFETY | 84 |
|
96 |
|
100 |
|
60 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
70 |
|
90 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
56 |
|
79 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 61 (better than 61% compared with investment alternatives), Innospec (Specialty Chemicals, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Innospec are low in value (priced high) with a consolidated Value Rank of 48 (worse than 52% of alternatives). But they show above-average growth (Growth Rank of 71) and are safely financed (Safety Rank of 60, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 61, is a buy recommendation based on Innospec's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Innospec exhibits low value (Obermatt Value Rank of 48), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 71). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 60) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 72 |
|
38 |
|
23 |
|
48 |
|
| GROWTH | ||||||||
| GROWTH | 35 |
|
28 |
|
22 |
|
71 |
|
| SAFETY | ||||||||
| SAFETY | 84 |
|
96 |
|
100 |
|
60 |
|
| COMBINED | ||||||||
| COMBINED | 69 |
|
50 |
|
44 |
|
61 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 48 (worse than 52% compared with alternatives), Innospec shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Innospec. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value concerning Innospec's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 57, which means that dividends are expected to be higher than for 57% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 56% of alternatives (only 44% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 63% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 48, is a hold recommendation based on Innospec's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 70 |
|
50 |
|
43 |
|
50 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 55 |
|
32 |
|
39 |
|
37 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 48 |
|
59 |
|
30 |
|
44 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 74 |
|
32 |
|
31 |
|
57 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 72 |
|
38 |
|
23 |
|
48 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), Innospec shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Innospec. Capital Growth has a rank of 93, which means that currently professionals expect the company to grow its invested capital more than 37% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 53 (above 53% of alternative investments). But Sales Growth has only a rank of 38, which means that, currently, professionals expect the company to grow less than 62% of its competitors, and Profit Growth is also low at a rank of 37. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Innospec, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 32 |
|
72 |
|
19 |
|
38 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 69 |
|
52 |
|
57 |
|
37 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
1 |
|
1 |
|
93 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 48 |
|
22 |
|
64 |
|
53 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 35 |
|
28 |
|
22 |
|
71 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 60 (better than 60% compared with alternatives), the company Innospec has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Innospec is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Innospec.Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 67, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 67% of its competitors. Liquidity is at 1, meaning that the company generates less profit to service its debt than 99% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 60 (better than 60% compared with alternatives), Innospec has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Innospec more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 62 |
|
97 |
|
100 |
|
100 |
|
| REFINANCING | ||||||||
| REFINANCING | 78 |
|
56 |
|
52 |
|
67 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 65 |
|
96 |
|
98 |
|
1 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 84 |
|
96 |
|
100 |
|
60 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
33 |
|
43 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
38 |
|
86 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
97 |
|
100 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
70 |
|
90 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Innospec from December 19, 2024.
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