Is the business good?
How good a business is IOSP?
Innospec Inc. earns 9.2% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
9.2%
Return on invested capital · cost of capital 9.0% · 0.24 points above what the capital costs: growth creates value
- Operating margin
- 6.9%
Operating margin · Specialty Chemicals median 9.1% · 12 months to Q1 2026
- Cash conversion
- 0.67×
Cash conversion · 3.45× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 2.8% |
| FY2021 | 8.9% |
| FY2022 | 9.5% |
| FY2023 | 8.3% |
| FY2024 | 9.6% |
| FY2025 | 7.3% |
Details›
- Gross margin12 months to Q1 2026
- 27%
- Operating margin12 months to Q1 2026
- 6.9%
- Net margin12 months to Q1 2026
- 6.4%
- Free cash flow margin
- 4.3%
- R&D as % of revenue
- 2.9%
- Revenue, trailing twelve months
- $1.79B
- Free cash flow, trailing twelve months
- $77M
- Net income, trailing twelve months
- $114M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Chemicals
Ranks #35 of 36 by Smart Score