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 45th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 13.67%. As for the metrics that stood out in our discounted cash flow analysis of Innospec Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 40.95; that's higher than 93.92% of US stocks in the Basic Materials sector that have positive free cash flow.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately merely 13.79% 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 2%; for context, that number is higher than 46.33% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Innospec Inc? See FF, MTRN, ARLP, HWKN, and OEC.
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