Innospec Inc. Common Stock (IOSP)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Innospec as a Graham-style balance-sheet first investor. The company sells specialty chemicals into fuels, oilfields, and performance applications—a cyclical but necessary niche. The filed numbers show both the appeal and the trouble. In fiscal 2025, the year ended 2025-12-31, revenue was $1.8B and net income was $116.6M, or $4.67 per diluted share. That looked much better than fiscal 2024, when net income was only $35.6M and EPS was $1.42, and worse than fiscal 2023, when net income was $139.1M and EPS was $5.56. This is not a smooth compounder; the computed Lynch category is CYCLICAL—Specialty Chemicals, and the earnings record confirms that. Recent quarters are improving: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $491.4M, net income $30.8M, and diluted EPS $1.25, versus fiscal Q2 2025 revenue of $439.7M, net income $23.5M, and diluted EPS $0.94. Fiscal Q1 2026 also showed $453.2M revenue, $30.4M net income, and $1.22 diluted EPS. The balance sheet is a real strength: debt-to-equity of 0.04 and an Altman Z-Score of 4.53. But returns are modest—ROE 9.13% and ROCE 5.11%—and the provided revenue growth metric is -2.40%. Free cash flow is $49.3M, only a 2.1% FCF yield. At the close on 2026-10-13, FairStock calculations show a price of $97.43, P/E 19.88, P/B 1.79, and a Graham Number of $77.54, leaving a margin of safety of -25.65%. PEG is 0.12, but that reflects a 167.33% profit rebound off a weak base. The FairStock Score is 62/100 and Piotroski F-Score is 6/9—not distressed, but not exceptional. I would call this a fair-to-full price for a cyclical, low-debt specialty chemical company. I need durable revenue growth and better returns before getting excited.

In plain English: Innospec makes specialty chemicals used in fuels, oilfields, and other industrial products. The business has little debt and profits have improved lately, but sales are slightly shrinking and the company earns only modest profits from its assets. At the recent price, the stock looks a little expensive compared with its profits and cash generation.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer