| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 61 | 19.0x | 17.8x | Around median | |
Growth | 39 | 2.9% | 7.1% | Bottom tier | |
Quality | 42 | 7.9% | 4.5% | Around median | |
Safety | 89 | — | 2.6x | Top tier | |
Capital Return | 62 | 1.84% | 2.12% | Around median | |
Momentum | 85 | 9.0% | 2.9% | Top tier | |
Sentiment | 64 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Innospec Inc. operates through three specialized segments: Performance Chemicals, Fuel Specialties, and Oilfield Services. The company generates revenue from high-performance chemicals, fuel additives, and materials and services used in oilfields, a diversification that was clearly evident in fiscal Q2 2026, when all three segments recorded double-digit sales growth. Performance Chemicals represented about 39% of quarterly revenue, Fuel Specialties about 38%, and Oilfield Services about 23%.
In fiscal Q2 2026, revenue increased 12% to $491.4 million from $439.7 million, and gross margin reached 28.1% versus 28.0% a year earlier. Net income attributable to Innospec rose to $30.8 million from $23.5 million, and GAAP earnings per share increased to $1.25 from $0.94, while adjusted earnings per share rose modestly to $1.27 from $1.26. Adjusted earnings before interest, taxes, depreciation, and amortization reached $50.1 million versus $49.1 million.
Innospec ended fiscal Q2 2026 with cash and cash equivalents of $250.2 million and no debt, but generated only $7.2 million in operating cash flow before capital expenditures of $16.5 million. The company repurchased slightly more than 87 thousand shares for $6.4 million and paid a semiannual dividend of $0.92 per share, reflecting clear financial flexibility despite continued spending on repairs and operational improvements at the North Carolina facility.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus for IOSP is rated Hold, with an average target of $110 and identical high and low targets of $110, indicating no apparent dispersion in the available estimates. This target is about 13.8% above the top of the 52-week range of $96.68, compared with a low of $65.51, but the Hold rating reflects a balance between the debt-free balance sheet and growth across all three segments on one hand, and capacity constraints, margin pressures, and weak conversion of revenue growth into adjusted earnings growth on the other.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Innospec's revenue increased 12% to $491.4 million, with sales growth across all three segments. Performance Chemicals recorded revenue of $190.3 million, Fuel Specialties generated about $185.7 million, and Oilfield Services generated about $115.4 million. Net income attributable to the company increased to $30.8 million from $23.5 million, while gross margin reached 28.1%. Adjusted earnings per share were $1.27 versus $1.26 a year earlier.
Management said during the August 5, 2026 call that the repair and improvement program was approximately 60% complete. The company targeted completion of the repairs and improvements by the end of fiscal Q4 2026, but it does not expect the additional capacity to have a meaningful impact in fiscal Q3 2026. Sequential improvement may begin in late fiscal Q4 2026 and become more evident in fiscal Q1 2027. Management estimated that the improvements would increase production capacity by at least more than 10% during fiscal 2027.
Oilfield Services revenue increased 14% to $115.4 million in fiscal Q2 2026, and operating income jumped 40% to $8.7 million. Gross margin improved to 32.3% from 29.6% due to a better sales mix. The expansion of the DRA drag-reducing agent plant supported growth, and management said most of the added capacity was nearly exhausted after winning customers in North America and increasing shipments to the Middle East. However, the completions and production businesses remained below management's expectations.
Cash and cash equivalents totaled $250.2 million on June 30, 2026, and the company had no debt. In fiscal Q2 2026, Innospec spent about $16.5 million on capital expenditures and repurchased slightly more than 87 thousand shares for $6.4 million. It also paid a semiannual dividend of $0.92 per share. In contrast, operating cash flow was only $7.2 million before capital expenditures, so management is targeting improved working capital efficiency during the second half of fiscal 2026.
Fuel Specialties gross margin declined to 36.6% from 38.1% because of sales mix and partly because of delays in passing through raw material cost inflation. Management expects additional pressure on the segment's margin in fiscal Q3 2026 due to the time lag between rising crude oil derivative costs and price adjustments. In Performance Chemicals, gross margin declined to 17.3% from 17.5%, with volumes down 2% and continued constraints at the North Carolina facility. Management also cited force majeure affecting certain raw materials and tight supplies on August 5, 2026, despite the teams' success in reformulating products and taking pricing actions.
The analyst consensus for IOSP is Hold, and the average price target is $110. The high and low targets are both $110, so the provided data do not show a diverse range of estimates. The target is about 13.8% above the top of the 52-week range of $96.68, while the range low is $65.51. Justifying this target requires continued growth across all three segments and improvements in capacity and margins following the repairs, while production constraints and pressure in Fuel Specialties represent headwinds.
