Latest Ratios: P/E Ratio 16.7x · EV/EBITDA 8.2x · 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 | $1.9B | $1.9B | $2.8B | $3.1B | $2.6B | $2.2B | $2.2B | $2.6B | $1.5B | $1.7B | $1.7B |
| Enterprise Value | $1.7B | $1.7B | $2.5B | $2.9B | $2.5B | $2.1B | $2.2B | $2.6B | $1.6B | $1.9B | $1.8B |
| P/E Ratio → | 16.75 | 16.39 | 77.51 | 22.17 | 19.33 | 24.09 | 78.22 | 22.78 | 17.90 | 28.02 | 20.57 |
| P/S Ratio | 1.08 | 1.08 | 1.50 | 1.58 | 1.31 | 1.51 | 1.88 | 1.69 | 1.03 | 1.32 | 1.90 |
| P/B Ratio | 1.47 | 1.44 | 2.27 | 2.68 | 2.47 | 2.17 | 2.38 | 2.78 | 1.84 | 2.18 | 2.56 |
| P/FCF | 21.89 | 21.74 | 19.32 | 21.24 | 65.22 | 41.50 | 19.35 | 19.42 | 20.31 | 34.23 | 19.03 |
| P/OCF | 13.93 | 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 | 8.20 | 8.37 | 11.38 | 14.56 | 10.85 | 12.24 | 27.40 | 13.04 | 8.78 | 10.34 | 12.86 |
| EV / EBIT | 10.79 | 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 | 0.47 | 1.15 | 1.25 | 1.90 |
| 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 | -1.20 | -1.20 | -1.10 | -0.79 | -0.45 | -0.61 | -0.81 | 0.09 | 0.48 | 0.74 | 1.19 |
| 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 | 2.2% | — | — | — | — | — | — | — | — | — | — |
| 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 | 6.0% | 6.1% | 1.3% | 4.5% | 5.2% | 4.2% | 1.3% | 4.4% | 5.6% | 3.6% | 4.9% |
| FCF Yield | 4.6% | 4.6% | 5.2% | 4.7% | 1.5% | 2.4% | 5.2% | 5.1% | 4.9% | 2.9% | 5.3% |
| Buyback Yield | 1.2% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 3.4% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $25M | $25M | $25M | $25M | $25M | $25M | $25M | $25M | $24M | $24M |
Includes 30+ ratios · 28 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying IOSP stock.
Innospec Inc.'s current P/E ratio is 16.7x. The historical average is 23.0x. This places it at the 52th percentile of its historical range.
Innospec Inc.'s current EV/EBITDA is 8.2x. 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 16.7x. This is at the 52th 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 2.17% 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 with volatile cash conversion
Metrics are mathematically derived from official filings.
Modest Multiples Against Specialty Peer Premiums
Based on reported figures, IOSP trades at a trailing P/E of 16.75 and EV/EBITDA of 8.20, a discount to specialty peers Hawkins at 38.61 and Balchem at 36.72 that may reflect its flat-to-declining revenue base.
The P/E of 16.75 with a PEG of 0.52 suggests the market is pricing modest earnings growth relative to the multiple, which appears conservative given the recent margin recovery. The EV/EBITDA of 8.20 sits well below the 20-plus multiples of higher-growth peers, consistent with investors discounting IOSP as a legacy fuel additives business with cyclical oilfield exposure. Investors should monitor whether sustained operating margin gains can justify a re-rating toward peer levels.
Operating Margins Recovering Unevenly Across Quarters
As reported in financial statements, IOSP's operating margin moved between 7.0% and 10.3% over ten quarters, with 8.8% in 2026Q3, while gross margin held a narrow 26.4% to 29.2% band.
The stability of gross margin alongside volatile operating margin suggests that cost absorption and SG&A or R&D spending, rather than pricing power, drive most of the quarterly variance. Net margin figures are distorted by legacy items, including a 2024Q4 net margin of negative 15.1%, so operating margin is the more reliable gauge of earning power. Compared with the Performance Chemicals peers, IOSP's 8.8% operating margin appears adequate but not clearly differentiated.
ROIC Compressed by Excess Cash Drag
According to recent SEC filings as summarized, IOSP's ROIC stood at 2.7% in 2026Q3 versus 3.4% in 2024Q3, with ROE at 2.3%, figures that sit well below the 12 to 17 percent ROIC range of Cabot and Balchem.
The gap between ROIC and the peer group is likely driven more by the large cash balance inflating invested capital than by operating weakness, since the operating margin has recovered. ROE near 2.3% is consistent with a balance sheet where equity is substantially cash and goodwill rather than productive operating assets. The trend suggests returns are decaying from 2024 levels, warranting monitoring of whether capital deployment improves the denominator.
Working Capital Cycle Lengthening Recently
Based on the supplied data, IOSP's cash conversion cycle expanded from 106 days in 2024Q4 to 127 days in 2026Q3, driven by DSO rising to 78 and DIO to 93 days.
The lengthening cash conversion cycle indicates that receivables and inventory are absorbing more working capital, consistent with the volatile working capital swings seen in cash flow data. Asset turnover of roughly 0.26 is low for a chemicals producer, reflecting the large goodwill and cash base relative to revenue. Investors should consider whether the DSO increase reflects customer terms or slower collections in the oilfield segment.
Negligible Debt Keeps Coverage Question Academic
As reported in financial statements, IOSP's debt-to-equity ratio of 0.03 and debt-to-EBITDA of 0.92 in 2026Q3 indicate minimal leverage, though interest coverage is not reported in the dataset.
Leverage has trended modestly lower from 0.04 debt-to-equity across 2024 to 2025, suggesting debt service is not a constraint on the business. Because interest coverage is unavailable in the supplied data, no conclusion can be drawn about coverage trend beyond the low absolute debt level. Refinancing and covenant risk appear remote on reported figures, though legacy obligations not captured in headline debt may warrant monitoring.
Liquidity Position Strong Under Ordinary Conditions
As reported in financial statements, IOSP's current ratio of 2.95 and quick ratio of 1.92 in 2026Q3 remain well above one, supported by $251.9M in cash against minimal debt.
The quick ratio near 1.9 indicates that liquidity does not depend heavily on inventory conversion, which matters given DIO of 93 days. Under severe stress, a sharp oilfield downturn would compress receivables and revenue, but the cash buffer and near-zero debt-to-equity of 0.03 would likely absorb a multi-quarter contraction. The main vulnerability is the rising cash conversion cycle, which could consume liquidity if it persists.
Cash Balance Flatters Balance Sheet Strength
Based on the supplied figures, IOSP's fortress balance sheet metrics rely heavily on a $251.9M cash position, and ratios such as ROIC and current ratio may look more favorable than underlying operating economics warrant.
A large idle cash balance lifts the current ratio and depresses ROIC simultaneously, so reading either metric in isolation can mislead an investor about the true earning power of the operating business. Free cash flow margins swinging between negative 3.2% and positive 14.8% suggest that reported earnings are not yet consistently converting to cash, which weakens the case for treating liquidity as fully durable. Investors should monitor whether management redeploys excess cash or whether the drag on returns persists.