IOSP's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 124.59 -- higher than 78.72% of US-listed equities with positive expected earnings growth.
The ratio of debt to operating expenses for Innospec Inc is higher than it is for about just 23.76% of US stocks.
With a year-over-year growth in debt of -56.09%, Innospec Inc's debt growth rate surpasses only 4.67% of about US stocks.
If you're looking for stocks that are quantitatively similar to Innospec Inc, a group of peers worth examining would be BRC, JOUT, ASTE, DCI, and PERI.
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:
We started the process of determining a valid price forecast for Innospec Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Innospec Inc ranked in the 55th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 76.67% on a DCF basis. The most interesting components of our discounted cash flow analysis for Innospec Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 32.33; that's higher than 90.15% of US stocks in the Basic Materials sector that have positive free cash flow.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than merely 13.55% of the free cash flow producing stocks we're observing.
IOSP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 54.02% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as IOSP, try VMC, MTRN, ROCK, WLK, and MLM.