Detailed financial statements for Innospec Inc. (IOSP): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Innospec Inc., founded in 1938 as Octel Corp. and rebranded in January 2006, is a global company headquartered in Englewood, Colorado. It focuses on the creation, production, formulation, promotion, and distribution of unique chemical products. The company's operations span across the United States, the wider North American continent, the United Kingdom, continental Europe, and various international markets. Innospec's business is organized into distinct divisions.
Analysis Summary
Innospec Inc. reported revenue of $1.78B in the most recent fiscal year, growing at a 5-year CAGR of 8.3%. Net income reached $116.6M, with a 32.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 27.5%, operating margin 8.1%, net margin 6.6%. Free cash flow grew at -5.4% CAGR over 5 years.
At the current price of $92.93, IOSP trades at a P/E of 18.69 and an ROE of 9.15%. Market capitalisation stands at $2.3B.
Balance sheet quality for IOSP: current ratio of 2.8, net cash position of $239.8M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is decent: free cash flow of $88.0M represents 75% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $883.4M | $1.31B | $1.48B | $1.51B | $1.19B | $1.48B | $1.96B | $1.95B | $1.85B | $1.78B |
| Cost of Revenue | $551.1M | $903.5M | $1.04B | $1.05B | $850.4M | $1.05B | $1.38B | $1.36B | $1.30B | $1.29B |
| Gross Profit | $332.3M | $403.3M | $435.0M | $466.2M | $342.7M | $434.9M | $586.7M | $591.1M | $542.9M | $492.4M |
| Research & Development | $25.4M | $31.4M | $33.4M | $35.4M | $30.9M | $37.4M | $38.7M | $41.7M | $47.8M | $51.0M |
| Selling, General & Admin | $209.5M | $239.5M | $261.0M | $280.9M | $237.0M | $267.2M | $360.7M | $387.8M | $314.0M | $285.1M |
| Operating Expenses | $234.9M | $270.9M | $294.4M | $316.3M | $309.0M | $302.8M | $399.4M | $429.5M | $365.0M | $336.1M |
| Operating Income | $105.4M | $129.7M | $133.5M | $149.9M | $33.7M | $132.1M | $187.3M | $161.6M | $177.9M | $156.3M |
| EBITDA | $144.0M | $191.9M | $194.2M | $206.2M | $87.5M | $173.0M | $225.8M | $213.7M | $224.6M | $187.4M |
| Interest Expense | $3.2M | $8.2M | $6.9M | $4.8M | $1.8M | $1.5M | $1.1M | 0 | 0 | 0 |
| Pre-tax Income | $103.1M | $128.1M | $131.6M | $150.4M | $39.7M | $134.4M | $184.6M | $174.4M | $41.2M | $138.1M |
| Income Tax | $21.8M | $66.3M | $46.6M | $38.2M | $11.0M | $41.3M | $51.6M | $35.3M | $5.6M | $21.5M |
| Net Income | $81.3M | $61.8M | $85.0M | $112.2M | $28.7M | $93.1M | $133.0M | $139.1M | $35.6M | $116.6M |
| EPS | $3.39 | $2.56 | $3.48 | $4.58 | $1.17 | $3.78 | $5.37 | $5.60 | $1.43 | $4.69 |
| EPS (Diluted) | $3.33 | $2.52 | $3.45 | $4.54 | $1.16 | $3.75 | $5.32 | $5.56 | $1.42 | $4.67 |
| Shares Outstanding (Diluted) | $24.4M | $24.5M | $24.6M | $24.7M | $24.8M | $24.9M | $25.0M | $25.0M | $25.1M | $25.0M |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $101.9M | $90.2M | $123.1M | $75.7M | $105.3M | $141.8M | $147.1M | $203.7M | $289.2M | $292.5M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $154.4M | $244.5M | $279.7M | $292.0M | $221.4M | $284.5M | $334.6M | $359.8M | $341.7M | $342.3M |
| Inventory | $173.8M | $209.8M | $248.0M | $244.6M | $220.0M | $277.6M | $373.1M | $300.1M | $301.0M | $329.3M |
| Total Current Assets | $441.1M | $561.5M | $663.9M | $630.3M | $566.2M | $728.1M | $872.6M | $885.7M | $956.6M | $1.00B |
| Property, Plant & Equipment | $157.4M | $196.0M | $196.4M | $231.1M | $250.9M | $249.8M | $266.2M | $313.4M | $314.5M | $338.8M |
| Goodwill | $374.8M | $361.8M | $364.9M | $363.0M | $371.2M | $364.3M | $358.8M | $399.3M | $382.5M | $399.0M |
| Intangible Assets | $144.4M | $163.3M | $136.3M | $113.5M | $75.3M | $57.5M | $45.0M | $57.3M | $65.4M | $67.7M |
| Total Assets | $1.18B | $1.41B | $1.47B | $1.47B | $1.40B | $1.57B | $1.60B | $1.71B | $1.73B | $1.83B |
| Accounts Payable | $59.6M | $117.9M | $126.8M | $122.0M | $98.7M | $148.7M | $165.3M | $163.6M | $163.8M | $174.7M |
| Short-term Debt | $10.3M | $15.8M | $21.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $183.1M | $261.6M | $296.6M | $303.5M | $252.4M | $336.6M | $405.8M | $371.5M | $371.4M | $360.1M |
| Long-term Debt | $258.5M | $202.6M | $186.2M | $58.6M | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | $527.6M | $615.9M | $647.9M | $549.9M | $452.5M | $537.9M | $563.3M | $557.8M | $518.6M | $499.5M |
| Retained Earnings | $561.8M | $605.0M | $668.3M | $755.5M | $758.6M | $822.9M | $924.2M | $1.03B | $1.02B | $1.10B |
| Total Equity | $653.8M | $794.3M | $825.5M | $918.5M | $944.4M | $1.03B | $1.04B | $1.15B | $1.21B | $1.33B |
| Total Debt | $273.3M | $224.3M | $210.9M | $92.6M | $40.8M | $35.6M | $45.3M | $45.2M | $44.9M | $52.7M |
| Net Debt | $171.4M | $134.1M | $87.8M | $16.9M | -$64.5M | -$106.2M | -$101.8M | -$158.5M | -$244.3M | -$239.8M |
| Working Capital | $258.0M | $299.9M | $367.3M | $326.8M | $313.8M | $391.5M | $466.8M | $514.2M | $585.2M | $644.5M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $81.3M | $61.8M | $85.0M | $112.2M | $28.7M | $93.1M | $133.0M | $139.1M | $35.6M | $116.6M |
| Depreciation & Amortization | $38.1M | $50.4M | $49.6M | $47.6M | $46.0M | $42.7M | $40.1M | $39.3M | $43.5M | $43.6M |
| Stock-based Compensation | $3.3M | $4.1M | $4.9M | $26.7M | $5.8M | $4.4M | $6.7M | $8.0M | $8.5M | $8.1M |
| Change in Working Capital | -$2.8M | -$25.0M | -$34.8M | -$20.8M | $50.1M | -$48.1M | -$90.1M | $20.6M | -$18.9M | -$48.4M |
| Operating Cash Flow | $104.5M | $82.7M | $104.9M | $161.6M | $145.9M | $93.2M | $81.7M | $207.3M | $184.5M | $138.3M |
| Capital Expenditure | -$16.5M | -$32.2M | -$30.1M | -$29.9M | -$29.7M | -$39.1M | -$42.3M | -$62.1M | -$41.4M | -$50.3M |
| Acquisitions | -$197.4M | $2.6M | -$5.4M | 0 | $100000 | $3.0M | $2.0M | -$34.7M | -$200000 | -$700000 |
| Stock Repurchased | -$8.4M | -$1.1M | -$1.4M | -$2.4M | -$2.1M | -$800000 | -$5.9M | -$1.1M | -$700000 | -$23.9M |
| Dividends Paid | -$15.9M | -$18.6M | -$21.7M | -$25.0M | -$25.6M | -$28.8M | -$31.7M | -$35.1M | -$38.8M | -$42.4M |
| Free Cash Flow | $88.0M | $50.5M | $74.8M | $131.7M | $116.2M | $54.1M | $39.4M | $145.2M | $143.1M | $88.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +47.9% | +13.0% | +2.5% | -21.2% | +24.3% | +32.4% | -0.8% | -5.3% | -3.7% | |
| Net Income Growth (YoY) | -24.0% | +37.5% | +32.0% | -74.4% | +224.4% | +42.9% | +4.6% | -74.4% | +227.5% | |
| EPS Growth (YoY) | -24.5% | +35.9% | +31.6% | -74.5% | +223.1% | +42.1% | +4.3% | -74.5% | +228.0% | |
| Shares Change (YoY) | +0.2% | +0.5% | +0.5% | +0.2% | +0.3% | +0.5% | +0.2% | +0.4% | -0.5% | |
| FCF Growth (YoY) | -42.6% | +48.1% | +76.1% | -11.8% | -53.4% | -27.2% | +268.5% | -1.4% | -38.5% | |
| Gross Margin | 37.6% | 30.9% | 29.5% | 30.8% | 28.7% | 29.3% | 29.9% | 30.3% | 29.4% | 27.7% |
| Operating Margin | 11.9% | 9.9% | 9.0% | 9.9% | 2.8% | 8.9% | 9.5% | 8.3% | 9.6% | 8.8% |
| EBITDA Margin | 16.3% | 14.7% | 13.1% | 13.6% | 7.3% | 11.7% | 11.5% | 11.0% | 12.2% | 10.5% |
| Net Margin | 9.2% | 4.7% | 5.8% | 7.4% | 2.4% | 6.3% | 6.8% | 7.1% | 1.9% | 6.6% |
| FCF Margin | 10.0% | 3.9% | 5.1% | 8.7% | 9.7% | 3.6% | 2.0% | 7.5% | 7.8% | 4.9% |
| Effective Tax Rate | 21.1% | 51.8% | 35.4% | 25.4% | 27.7% | 30.7% | 28.0% | 20.2% | 13.6% | 15.6% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $3.60 | $2.06 | $3.04 | $5.33 | $4.69 | $2.18 | $1.58 | $5.80 | $5.70 | $3.52 |
| Dividends Per Share | $0.65 | $0.76 | $0.88 | $1.01 | $1.03 | $1.16 | $1.27 | $1.40 | $1.54 | $1.70 |
| Shares Outstanding (Basic) | $24.0M | $24.1M | $24.4M | $24.5M | $24.6M | $24.6M | $24.8M | $24.9M | $24.9M | $24.9M |
What to look at in Basic Materials
Miners, chemicals, steel. 100% commodity-driven. Analysing them with pure P/E is a mistake — look at cost position and dividend sustainability.
- FCF yield — In commodities FCF is gold — EPS is very misleading
- Gross margin — 5y consistent gross margin = moat signal
- Net debt / EBITDA (trough) — Use EBITDA from the worst year of the cycle, not the current one
- Dividend coverage — Dividend covered by FCF in an average year, not at peak
- Capex / D&A — >1x = maintain/grow reserves. <0.7x = decapitalising
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
- P/B across cycles — Commodities: 0.8-1.2x at troughs, 2x+ at peaks. <2x still reasonable zone
Profitability
| Return on Equity | 9.15% |
| Return on Invested Capital | 8.56% |
| Return on Assets | 6.58% |
| Gross Margin | 27.46% |
| Operating Margin | 8.13% |
| Net Margin | 6.60% |
Financial Health
| Debt / Equity | 0.04 |
| Current Ratio | 2.78 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 4.80 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 20.21 | 27.58 | 17.75 | 22.59 | 77.55 | 23.90 | 19.15 | 22.01 | 76.97 | 16.32 |
| P/B | 2.51 | 2.15 | 1.83 | 2.76 | 2.36 | 2.16 | 2.46 | 2.67 | 2.27 | 1.44 |
| P/S | 1.86 | 1.30 | 1.02 | 1.67 | 1.87 | 1.50 | 1.30 | 1.57 | 1.49 | 1.07 |
| Gross Margin | 37.6% | 30.9% | 29.5% | 30.8% | 28.7% | 29.3% | 29.9% | 30.3% | 29.4% | 27.7% |
| Operating Margin | 11.9% | 9.9% | 9.0% | 9.9% | 2.8% | 8.9% | 9.5% | 8.3% | 9.6% | 8.8% |
| Net Margin | 9.2% | 4.7% | 5.8% | 7.4% | 2.4% | 6.3% | 6.8% | 7.1% | 1.9% | 6.6% |
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