Innospec Inc logo

Innospec Inc(IOSP)

upturn advisory logo
ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
2-STAR RATING
Consider higher Upturn Star rating
BUY for 43 days
PROFIT SINCE LAST BUY
+13.13% ▲
LAST CLOSE
$96.87
09/24/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close

Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for IOSP

09/24/2026: IOSP (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Innospec Inc is a specialized chemical company that develops additives for the fuel, energy, and personal care markets. The company is recognized for its technical expertise and a balanced, diversified business model that helps navigate industry cycles. Its primary growth story revolves around expanding its high-margin performance chemicals and sustainable ingredient portfolios. However, investors must consider risks such as potential declines in conventional fuel demand and exposure to energy commodity price fluctuations. Innospec may best suit investors looking for a stable, dividend-paying company in the specialty chemicals sector; key developments to monitor include R&D breakthroughs in bio-based products and ongoing acquisition integration success.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitInnospec offers steady growth rather than explosive, rapid expansion.
Momentum investorStrong fit while signal remains positiveWhen the technical trend is favorable, the stock often shows steady, disciplined movement.
Value investorMixed fitValuation fluctuates; investors may find better entry points during cyclical pullbacks in the energy sector.
Dividend investorStrong fitThe company maintains a reliable dividend history and commitment to shareholder returns.
Low-risk investorMediumWhile established, the company still carries exposure to commodity-linked industries like energy.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumAs a specialty chemical firm, stock price can fluctuate based on raw material costs and energy market cycles.
Valuation riskMediumThe stock can become overvalued during periods of high optimism regarding energy or chemical pricing cycles.
Competition risk (specialty chemicals)MediumInnospec faces constant pressure from both larger peers and smaller, agile innovators in the chemical space.
Business qualityStrongThe company is known for high-quality specialty products and strong, long-term relationships with customers.
Dividend incomeLow / noneThe dividend is generally considered stable and secure given the company's cash flow profile.
Execution riskMediumSuccess depends on the company's ability to integrate acquisitions and maintain its R&D edge.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit -2.98%
Avg. Invested days 40
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/24/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
IOSP receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by soft unit economics, weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
IOSP has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+227.5%) is partially offset by soft cash generation (FCF margin 4.9%), slightly negative revenue growth (-3.7%), soft profitability (net margin 6.6%).

Financial Health Rating

★★★★★
IOSP's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 35.2%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is IOSP's strongest growth driver at +227.5% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (-3.7%, slightly negative) and free-cash-flow growth (-38.5%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 102.1% and approximately 98.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.35% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 15.75%
Allspring Global Investments Holdings, LLC 7.68%
Vanguard Portfolio Management, LLC 7.55%
Dimensional Fund Advisors, Inc. 5.30%
Vanguard Capital Management, LLC 4.53%

Unit Economics (Per $1K Revenue)

★★★★★
IOSP generates approximately $277 of gross profit, $88 of operating income, and $49 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 15.57%

Quantitative Style Profile

★★★★★
IOSP has a liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedSmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.39B USD
Price to earnings Ratio 19.77
1Y Target Price 101
Price to earnings Ratio 19.77
1Y Target Price 101
Volume (30-day avg) 184.8K shares
Beta 0.92
52 Weeks Range 64.75 - 98.00
Updated Date 09/24/2026
52 Weeks Range 64.75 - 98.00
Updated Date 09/24/2026
Dividends yield (FY) 1.85%
Basic EPS (TTM) 4.9

How Company Makes Money

Business areaWhat it includesRetail investor read
Fuel SpecialtiesAdditives for fuel efficiency and emissions reduction.This is a core, recurring revenue driver linked to global fuel consumption and emissions standards.
Performance ChemicalsIngredients for skin care, hair care, and household products.This segment offers exposure to stable, consumer-driven markets.
GeographyGlobal operations across North America, Europe, and Asia.The company has diversified global exposure, reducing reliance on any single regional economy.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Advertisement

Valuation

Trailing PE 19.77
Forward PE 15.04
Enterprise Value 2.17B
Price to Sales(TTM) 1.3
Enterprise Value 2.17B
Price to Sales(TTM) 1.3
Enterprise Value to Revenue 1.18
Enterprise Value to EBITDA 11.37
Shares Outstanding 24.63M
Shares Floating 24.32M
Shares Outstanding 24.63M
Shares Floating 24.32M
Percent Insiders 1.35
Percent Institutions 102.11

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Innospec Inc

Exchange NASDAQ
Headquarters Englewood, CO, United States
IPO Launch date 1998-05-13
President, CEO & Director Mr. Patrick S. Williams
Sector Basic Materials
Industry Specialty Chemicals
Full time employees 2450
Full time employees 2450

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company operates through three segments: Performance Chemicals, Fuel Specialties, and Oilfield Services. It offers specialty chemical products used as additives in diesel, jet, marine, fuel oil, and other fuels used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications. It also provides technology-based solutions for customers' processes or products in personal care, home care, agrochemical, construction, mining, and other industrial markets. In addition, the company develops and markets chemical solutions for drilling, completion, production, drag reducing agents, and oil and gas applications. It serves large multinational companies, manufacturers of personal and home care products and global mining, agriculture and building products, and other industrial companies; national and multinational oil companies, fuel marketers and retailers, fuel terminals, marine lines, coating and plastics producers, and other heavy industrial end-users; and multinational public, independent exploration and production, and oilfield services companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.