Latest Ratios: P/E Ratio 20.6x · EV/EBITDA 10.3x · ROE 9.1%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.4B | $1.9B | $2.8B | $3.1B | $2.6B | $2.2B | $2.2B | $2.6B | $1.5B | $1.7B | $1.7B |
| Enterprise Value | $2.1B | $1.7B | $2.5B | $2.9B | $2.5B | $2.1B | $2.2B | $2.6B | $1.6B | $1.9B | $1.8B |
| P/E Ratio → | 20.57 | 16.39 | 77.51 | 22.17 | 19.33 | 24.09 | 78.22 | 22.78 | 17.90 | 28.02 | 20.57 |
| P/S Ratio | 1.33 | 1.08 | 1.50 | 1.58 | 1.31 | 1.51 | 1.88 | 1.69 | 1.03 | 1.32 | 1.90 |
| P/B Ratio | 1.80 | 1.44 | 2.27 | 2.68 | 2.47 | 2.17 | 2.38 | 2.78 | 1.84 | 2.18 | 2.56 |
| P/FCF | 26.89 | 21.74 | 19.32 | 21.24 | 65.22 | 41.50 | 19.35 | 19.42 | 20.31 | 34.23 | 19.03 |
| P/OCF | 17.11 | 13.83 | 14.98 | 14.88 | 31.45 | 24.09 | 15.41 | 15.83 | 14.49 | 20.90 | 16.02 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.94 | 1.37 | 1.50 | 1.26 | 1.44 | 1.83 | 1.70 | 1.09 | 1.43 | 2.09 |
| EV / EBITDA | 10.34 | 8.14 | 11.38 | 14.56 | 10.85 | 12.24 | 27.40 | 12.82 | 8.50 | 10.05 | 12.90 |
| EV / EBIT | 13.61 | 12.12 | 13.92 | 16.77 | 13.29 | 16.42 | 52.62 | 16.59 | 11.60 | 13.67 | 17.36 |
| EV / FCF | — | 19.01 | 17.61 | 20.15 | 62.64 | 39.54 | 18.79 | 19.55 | 21.49 | 36.89 | 20.97 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.7% | 27.7% | 29.4% | 30.3% | 29.9% | 29.3% | 28.7% | 30.8% | 29.5% | 30.9% | 37.6% |
| Operating Margin | 8.8% | 8.8% | 9.6% | 8.3% | 9.5% | 8.9% | 2.8% | 9.9% | 9.0% | 9.9% | 11.9% |
| Net Profit Margin | 6.6% | 6.6% | 1.9% | 7.1% | 6.8% | 6.3% | 2.4% | 7.4% | 5.8% | 4.7% | 9.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.1% | 9.1% | 3.0% | 12.7% | 12.8% | 9.4% | 3.1% | 12.9% | 10.5% | 8.5% | 12.9% |
| ROA | 6.5% | 6.5% | 2.1% | 8.4% | 8.4% | 6.3% | 2.0% | 7.6% | 5.9% | 4.8% | 7.4% |
| ROIC | 11.4% | 11.4% | 13.6% | 12.6% | 15.1% | 11.0% | 2.8% | 12.2% | 10.9% | 11.1% | 11.1% |
| ROCE | 11.0% | 11.0% | 13.2% | 12.8% | 15.4% | 11.1% | 2.9% | 12.8% | 11.5% | 12.1% | 11.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.04 | 0.10 | 0.26 | 0.28 | 0.42 |
| Debt / EBITDA | 0.26 | 0.26 | 0.20 | 0.22 | 0.20 | 0.20 | 0.51 | 0.46 | 1.11 | 1.21 | 1.91 |
| Net Debt / Equity | — | -0.18 | -0.20 | -0.14 | -0.10 | -0.10 | -0.07 | 0.02 | 0.11 | 0.17 | 0.26 |
| Net Debt / EBITDA | -1.17 | -1.17 | -1.10 | -0.79 | -0.45 | -0.61 | -0.81 | 0.08 | 0.46 | 0.72 | 1.20 |
| Debt / FCF | — | -2.73 | -1.71 | -1.09 | -2.58 | -1.96 | -0.56 | 0.13 | 1.17 | 2.66 | 1.95 |
| Interest Coverage | — | — | — | — | 168.82 | 86.87 | 23.06 | 32.33 | 20.07 | 16.62 | 33.22 |
Net cash position: cash ($293M) exceeds total debt ($53M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.79 | 2.79 | 2.58 | 2.38 | 2.15 | 2.16 | 2.24 | 2.08 | 2.24 | 2.15 | 2.41 |
| Quick Ratio | 1.88 | 1.88 | 1.77 | 1.58 | 1.23 | 1.34 | 1.37 | 1.27 | 1.40 | 1.34 | 1.46 |
| Cash Ratio | 0.81 | 0.81 | 0.78 | 0.55 | 0.36 | 0.42 | 0.42 | 0.25 | 0.42 | 0.34 | 0.56 |
| Asset Turnover | — | 0.97 | 1.06 | 1.14 | 1.22 | 0.94 | 0.85 | 1.03 | 1.00 | 0.93 | 0.75 |
| Inventory Turnover | 3.90 | 3.90 | 4.33 | 4.52 | 3.69 | 3.78 | 3.87 | 4.28 | 4.20 | 4.31 | 3.17 |
| Days Sales Outstanding | — | 70.27 | 67.58 | 67.39 | 62.19 | 70.00 | 67.73 | 70.43 | 69.12 | 68.29 | 63.79 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 2.2% | 1.4% | 1.1% | 1.2% | 1.3% | 1.1% | 1.0% | 1.4% | 1.1% | 0.9% |
| Payout Ratio | 36.4% | 36.4% | 109.0% | 25.2% | 23.8% | 30.9% | 89.2% | 22.3% | 25.5% | 30.1% | 19.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.9% | 6.1% | 1.3% | 4.5% | 5.2% | 4.2% | 1.3% | 4.4% | 5.6% | 3.6% | 4.9% |
| FCF Yield | 3.7% | 4.6% | 5.2% | 4.7% | 1.5% | 2.4% | 5.2% | 5.1% | 4.9% | 2.9% | 5.3% |
| Buyback Yield | 1.0% | 1.2% | 0.0% | 0.0% | 0.2% | 0.0% | 0.1% | 0.1% | 0.1% | 0.1% | 0.5% |
| Total Shareholder Yield | 2.8% | 3.5% | 1.4% | 1.2% | 1.5% | 1.3% | 1.2% | 1.1% | 1.5% | 1.1% | 1.5% |
| Shares Outstanding | — | $25M | $25M | $25M | $25M | $25M | $25M | $25M | $25M | $24M | $24M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying IOSP stock.
Innospec Inc.'s current P/E ratio is 20.6x. The historical average is 23.0x. This places it at the 63th percentile of its historical range.
Innospec Inc.'s current EV/EBITDA is 10.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.3x.
Innospec Inc.'s return on equity (ROE) is 9.1%. The historical average is 10.4%.
Based on historical data, Innospec Inc. is trading at a P/E of 20.6x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Innospec Inc.'s current dividend yield is 1.77% with a payout ratio of 36.4%.
Innospec Inc. has 27.7% gross margin and 8.8% operating margin.
Innospec Inc.'s Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Revenue contraction persists
Metrics are mathematically derived from official filings.
Margin Resilience Amid Revenue Softness
Gross margin held near 28% in 2026Q2 despite a 3.65% TTM revenue decline, while operating margin expanded to 8.1% from 7.0% in the prior quarter, as per recent financial statements.
The stability of gross margin around 28% suggests pricing power or effective cost pass-through, even as volumes contract. Operating margin improvement in 2026Q2, despite revenue softness, indicates that cost discipline and mix shifts are partially offsetting top-line pressure. However, net margin at 6.3% remains below the 10.4% peak in 2025Q4, reflecting elevated SG&A or one-off items. Investors should monitor whether margin expansion can persist if revenue continues to decline.
Subdued Returns Masked by Fortress Balance Sheet
ROIC averaged roughly 2.8% over the last four quarters, well below the 3.9% in 2024Q1, while ROE remained in the low single digits, as reported in quarterly filings.
The low ROIC and ROE figures suggest that the company is not compounding returns on invested capital efficiently, partly due to a large cash pile of $292.5M that earns minimal returns. The negligible debt-to-equity ratio of 0.04 indicates a conservative capital structure, but it also implies that excess liquidity is dragging down returns. If management cannot deploy cash into higher-return projects or acquisitions, ROE may remain subdued. The recent double-digit operating income growth, however, could signal improving operational efficiency that may lift returns if sustained.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 116 days in 2026Q2 from 98 days in 2024Q1, driven by DSO rising to 71 days and DIO to 85 days, according to the latest balance sheet data.
The elongation of the cash conversion cycle indicates that Innospec is tying up more cash in receivables and inventory, which is particularly concerning given the revenue contraction. DSO has increased from 62 to 71 days over the past ten quarters, suggesting slower collections or a shift in customer mix. DIO also rose from 80 to 85 days, implying potential inventory build-up relative to sales. This working capital strain likely contributed to the negative free cash flow margin of -3.2% in 2026Q2, and investors should monitor whether this is a temporary blip or a structural inefficiency.
Negligible Debt Provides Strategic Flexibility
Debt-to-equity stands at 0.04 with total debt of $47.9M against $1.3B equity, and D/EBITDA improved to 1.18 in 2026Q2, as per the latest balance sheet.
Innospec's balance sheet is exceptionally strong, with minimal leverage and a cash position of $292.5M that far exceeds total debt. This fortress-like financial position insulates the company from interest rate volatility and provides ample capacity for M&A or organic investments. However, the conservative capital allocation may be viewed as a missed opportunity to enhance shareholder returns, especially given the low ROE. The lack of interest coverage data is notable, but with such low debt, coverage is likely comfortable. Investors should watch for any shift in capital deployment strategy that could alter this dynamic.
Ample Liquidity Buffers Operational Volatility
Current ratio improved to 2.78 in 2026Q2 from 2.50 in 2024Q1, with quick ratio at 1.87, indicating a strong liquidity position, based on recent financial statements.
The current and quick ratios suggest that Innospec can comfortably meet short-term obligations even if cash flows were to deteriorate further. The high liquidity is partly due to the large cash balance and low debt, which provides a cushion against operational shocks such as the recent revenue decline. However, the negative free cash flow in 2026Q2 highlights that liquidity is not being generated from operations but from the existing cash pile. This underscores the importance of working capital management, as continued cash burn could erode the liquidity buffer over time.
Misapplied EV/EBITDA Overstates Value
EV/EBITDA of 9.99 appears attractive, but it understates the true cost of legacy liabilities and the cash drag from $292.5M in low-yielding cash, as per reported figures.
The EV/EBITDA multiple is commonly used for chemical companies, but for Innospec it can be misleading because the enterprise value subtracts cash that is not generating returns, making the multiple look cheaper than it is. Additionally, EBITDA does not capture the cash outflows related to legacy environmental remediation and pension obligations, which could be material. A more appropriate valuation metric might be P/E or P/FCF, which better reflect the earnings and cash generation available to shareholders. Investors should adjust EV for excess cash and add back estimated legacy liabilities to get a truer picture of the company's value.