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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Innospec Inc. To summarize, we found that Innospec Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Innospec Inc ended up being:
The company's balance sheet shows it gets 99% of its capital from equity, and 1% of its capital from debt. Its equity weight surpasses that of 93.7% of free cash flow generating stocks in the Basic Materials sector.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than only 7.34% 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 3%; for context, that number is higher than 51.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KWR, IFF, SUZ, MTX, and ROCK 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...