Stock analysis · Bull Rankings model

IOSP analysis

Innospec Inc.Specialty Chemicals. Scored on the same transparent model behind the daily rankings.

IOSP
Innospec Inc. · Specialty Chemicals
FCF$110mC
Rev+0.2%C
D/E0.04A-
P/E18.9xB
PEG0.66A-
61Score
$86.59$2.1B
1Y Target$99.33Analyst consensus · 3 analysts
5Y Target$125.41Compound horizon
10Y Target$160.83Long-dated conviction
FCF$110mTTM
C
FCF $110m — modest; watch for margin expansion
Rev+0.2%TTM YoY
C
Revenue +0.2% — flat, mature phase or headwinds present
D/E0.04
A-
D/E 0.04 — less debt than most Basic Materials peers (≈25th pctile)
P/E18.9x
B
P/E 18.9 — near the Basic Materials median (≈60th pctile)
PEG0.66
A-
PEG 0.66 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 61
Quality0.65
Growth0.50
Value0.70
Why this score
  • Raising its dividend
  • Durable high returns
  • Cyclical growth
Entry · Margin of safety
52-week rangeNear 52-week high
6% off the 12-month high
vs DCF fair value24% belowest. fair value ~$114
What the price assumes: free cash flow compounding at ~8% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability27% · Bgross profit ÷ total assets (Novy-Marx)
ROIC7.3% · C+return on invested capital — not score-weighted
Why now
Specialty Chemicals · market cap $2.1b. 6% off the 52-week high of $92.14. PEG 0.66 — paying under fair value for the growth rate. 3 sell-side analysts publish a mean 1-yr target of $99.33 (implying +15% upside).
Moat
Moat signals from the quantitative card are modest — profitability and capital efficiency are middle-of-pack. The thesis here depends on softer factors (switching costs, brand, distribution, regulatory protection) not captured by the quality-growth screen.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon
1-3 yr $99.33 (3-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $125.41 at ~8% CAGR — dividend + buyback compounding. 10 yr $160.83 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

IOSP vs the Top Picks average

PillarIOSPBook avgDiff
Quality0.650.83-0.18
Growth0.500.91-0.41
Value0.700.75-0.05

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-2.5 over 33 daily scores
From 63.5 (Jun 22) → 61.0 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
23
Position size
$1,992
4.0% of portfolio
Stop price
$64.94
25% below $86.59
$ at risk if stopped
$497.89
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Innospec Inc. (IOSP): score, valuation & FAQ

Innospec Inc. (IOSP) is a Specialty Chemicals company that scores 61 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A-) and PEG (A-). On valuation, IOSP sits about 24% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 8% annual free-cash-flow growth over the next decade.

Is IOSP a good stock to buy?

Bull Rankings scores IOSP 61 out of 100 on its quality-growth model, which is a middling reading. That is driven by D/E (A-) and PEG (A-). A score is a quantitative screen of Innospec Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does IOSP score 61 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). IOSP earns its highest marks on D/E (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is IOSP overvalued or undervalued?

Based on $86.59, IOSP sits about 24% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 8% annual free-cash-flow growth over the next decade. It trades at a 18.9x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in IOSP?

Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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