Latest Ratios: P/E Ratio 17.6x · EV/EBITDA 8.9x · 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 | $2.0B | $1.9B | $2.8B | $3.1B | $2.6B | $2.2B | $2.2B | $2.6B | $1.5B | $1.7B | $1.7B |
| Enterprise Value | $1.8B | $1.7B | $2.5B | $2.9B | $2.5B | $2.1B | $2.2B | $2.6B | $1.6B | $1.9B | $1.8B |
| P/E Ratio → | 17.65 | 16.39 | 77.51 | 22.17 | 19.33 | 24.09 | 78.22 | 22.78 | 17.90 | 28.02 | 20.57 |
| P/S Ratio | 1.14 | 1.08 | 1.50 | 1.58 | 1.31 | 1.51 | 1.88 | 1.69 | 1.03 | 1.32 | 1.90 |
| P/B Ratio | 1.55 | 1.44 | 2.27 | 2.68 | 2.47 | 2.17 | 2.38 | 2.78 | 1.84 | 2.18 | 2.56 |
| P/FCF | 23.07 | 21.74 | 19.32 | 21.24 | 65.22 | 41.50 | 19.35 | 19.42 | 20.31 | 34.23 | 19.03 |
| P/OCF | 14.68 | 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 | — | 0.96 | 1.37 | 1.50 | 1.26 | 1.44 | 1.83 | 1.70 | 1.09 | 1.43 | 2.09 |
| EV / EBITDA | 8.89 | 8.32 | 11.38 | 14.56 | 10.85 | 12.24 | 27.40 | 12.82 | 8.50 | 10.05 | 12.90 |
| EV / EBIT | 11.69 | 10.94 | 13.92 | 18.10 | 13.18 | 16.42 | 52.62 | 16.59 | 11.60 | 13.67 | 17.36 |
| EV / FCF | — | 19.43 | 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 | 11.2% | 11.2% | 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 | 0.07 | 0.07 | 0.04 | 0.04 | 0.04 | 0.03 | 0.04 | 0.10 | 0.26 | 0.28 | 0.42 |
| Debt / EBITDA | 0.44 | 0.44 | 0.20 | 0.22 | 0.20 | 0.20 | 0.51 | 0.46 | 1.11 | 1.21 | 1.91 |
| Net Debt / Equity | — | -0.15 | -0.20 | -0.14 | -0.10 | -0.10 | -0.07 | 0.02 | 0.11 | 0.17 | 0.26 |
| Net Debt / EBITDA | -0.99 | -0.99 | -1.10 | -0.79 | -0.45 | -0.61 | -0.81 | 0.08 | 0.46 | 0.72 | 1.20 |
| Debt / FCF | — | -2.31 | -1.71 | -1.09 | -2.58 | -1.96 | -0.56 | 0.13 | 1.17 | 2.66 | 1.95 |
| Interest Coverage | — | — | — | — | 170.27 | 86.87 | 23.06 | 32.33 | 20.07 | 16.62 | 33.22 |
Net cash position: cash ($293M) exceeds total debt ($90M)
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 | 2.1% | 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 | 5.7% | 6.1% | 1.3% | 4.5% | 5.2% | 4.2% | 1.3% | 4.4% | 5.6% | 3.6% | 4.9% |
| FCF Yield | 4.3% | 4.6% | 5.2% | 4.7% | 1.5% | 2.4% | 5.2% | 5.1% | 4.9% | 2.9% | 5.3% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | 0.0% | 0.1% | 0.1% | 0.1% | 0.1% | 0.5% |
| Total Shareholder Yield | 2.1% | 2.2% | 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 |
Cyclical End-Market Exposure
According to current market data, Innospec trades at a P/E of 17.69, which appears to discount the company's cyclical exposure while failing to fully price in the potential for margin expansion through its higher-value Performance Chemicals segment relative to its specialty chemical peers.
The forward P/E of 17.29 suggests that investors are anticipating stable earnings, yet the PEG ratio of 0.55 implies that the market may be underestimating the company's growth potential if it successfully pivots away from legacy fuel additives. This valuation appears conservative compared to high-growth specialty peers, likely reflecting the market's skepticism regarding the sustainability of its oilfield services revenue stream.
Based on reported financial figures, Innospec's ROIC has trended between 2.1% and 3.9% over the last ten quarters, indicating that the company is struggling to generate returns that consistently exceed its cost of capital despite its specialized product portfolio and technical barriers to entry.
The persistent gap between ROIC and historical industry benchmarks suggests that significant R&D and SG&A overhead are diluting the returns on invested capital. Investors should monitor whether management can improve asset utilization, as the current ROIC levels appear insufficient to drive long-term compounding without a meaningful shift in segment mix.
As reported in recent financial statements, Innospec's cash conversion cycle has remained elevated, averaging over 110 days, which suggests that the company faces structural challenges in managing inventory and receivables across its diverse specialty chemical and oilfield service end-markets compared to more efficient peers.
The high days inventory outstanding (DIO) of 89 to 96 days indicates a potential over-accumulation of raw materials or finished goods, which may be a defensive response to supply chain volatility. This inefficiency in working capital management appears to be a primary drag on free cash flow, warranting further investigation into the company's inventory turnover strategies.
Based on an analysis of Innospec's business model, the P/E ratio is frequently misapplied by market participants, as it fails to account for the non-cash charges and legacy environmental liabilities that periodically distort net income and obscure the underlying cash-generating power of the core specialty business.
Investors should prioritize EV/EBITDA or free cash flow yield over P/E, as these metrics better reflect the company's operational performance by stripping out the noise from legacy Octel-related remediation costs. Relying solely on P/E risks misinterpreting the company's true valuation, as it treats non-recurring legacy adjustments as permanent features of the earnings profile.
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 17.6x. The historical average is 23.0x. This places it at the 52th percentile of its historical range.
Innospec Inc.'s current EV/EBITDA is 8.9x. 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 17.6x. 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 2.06% 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 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.