Innospec manufactures and supplies a wide range of specialty chemicals worldwide. The Fuel Specialties business specializes in manufacturing and supplying the fuel additives that help improve fuel efficiency, boost engine performance and reduce harmful emissions. This business also contains Oilfield Specialties which provides specialty chemicals for oil & gas drilling and production operations. The Performance Chemicals business provides solutions for processes or products focused in the Personal Care and Polymers markets. The company was founded in 1938 and is based in Englewood, Colorado.
IOSP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for IOSP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Innospec Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for IOSP, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Its equity weight surpasses that of 93.7% of free cash flow generating stocks in the Basic Materials sector.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately merely 7.36% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
IOSP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 51.21% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KWR, SUZ, IFF, FSI, and MTX can be thought of as valuation peers to IOSP, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Wasatch Advisors, an employee-owned investment manager, published its ‘Wasatch Small Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 4.48% was recorded by the fund for the Q3 of 2020, above its Russel 2000 Value benchmark that returned 2.56%. You can view the fund’s top 10 […]
ENGLEWOOD, Colo., Jan. 18, 2021 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ: IOSP) today announced that it will release fourth quarter 2020 earnings results on Tuesday, February 16, 2021, after market close. Following the release of its results, Patrick S. Williams, President and Chief Executive Officer, and Ian Cleminson, Executive Vice President and Chief Financial Officer, will host an interactive conference call on Wednesday, February 17, 2021, at 9.00a.m. ET. The public is invited to listen to the conference call by dialing +1 877-870-9135 and +44 (0) 2071 928338 (International), 5-10 minutes prior to the start of the call. The access code is 5080566. An audio webcast of the conference call will run simultaneously on the company’s website at www.innospec.com. The relevant link as wel...