Innospec EBITDA vs. Return On Asset

IOSP Stock  USD 115.86  0.12  0.10%   
Based on the measurements of profitability obtained from Innospec's financial statements, Innospec's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Innospec's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
200.9 M
Current Value
160.1 M
Quarterly Volatility
43.3 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Innospec's Price To Sales Ratio is relatively stable compared to the past year. As of 12/15/2024, Days Sales Outstanding is likely to grow to 72.24, while EV To Sales is likely to drop 0.84. At this time, Innospec's Total Other Income Expense Net is relatively stable compared to the past year. As of 12/15/2024, Net Income is likely to grow to about 146.1 M, while Income Before Tax is likely to drop slightly above 87.2 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.390.3033
Significantly Up
Slightly volatile
Net Profit Margin0.04470.0714
Way Down
Slightly volatile
Operating Profit Margin0.120.0829
Way Up
Slightly volatile
Pretax Profit Margin0.09780.0895
Significantly Up
Slightly volatile
Return On Assets0.04220.0815
Way Down
Slightly volatile
Return On Equity0.07820.1213
Way Down
Slightly volatile
For Innospec profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Innospec to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Innospec utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Innospec's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Innospec over time as well as its relative position and ranking within its peers.
  

Innospec's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
To learn how to invest in Innospec Stock, please use our How to Invest in Innospec guide.
Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Innospec. If investors know Innospec will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Innospec listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.15)
Dividend Share
1.48
Earnings Share
5.74
Revenue Per Share
75.197
Quarterly Revenue Growth
(0.04)
The market value of Innospec is measured differently than its book value, which is the value of Innospec that is recorded on the company's balance sheet. Investors also form their own opinion of Innospec's value that differs from its market value or its book value, called intrinsic value, which is Innospec's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Innospec's market value can be influenced by many factors that don't directly affect Innospec's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Innospec's value and its price as these two are different measures arrived at by different means. Investors typically determine if Innospec is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Innospec's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Innospec Return On Asset vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Innospec's current stock value. Our valuation model uses many indicators to compare Innospec value to that of its competitors to determine the firm's financial worth.
Innospec is rated fourth overall in ebitda category among its peers. It is rated second overall in return on asset category among its peers . The ratio of EBITDA to Return On Asset for Innospec is about  2,774,861,878 . At this time, Innospec's EBITDA is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Innospec by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Innospec Return On Asset vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Innospec

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
200.9 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Innospec

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0724
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Innospec Return On Asset Comparison

Innospec is currently under evaluation in return on asset category among its peers.

Innospec Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Innospec, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Innospec will eventually generate negative long term returns. The profitability progress is the general direction of Innospec's change in net profit over the period of time. It can combine multiple indicators of Innospec, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-148.1 M-140.7 M
Operating Income161.6 M97.1 M
Income Before Tax174.4 M87.2 M
Total Other Income Expense Net12.8 M13.4 M
Net Income139.1 M146.1 M
Income Tax Expense35.3 M27.6 M
Net Income Applicable To Common Shares152.9 M160.6 M
Net Income From Continuing Ops126.8 M99.4 M
Non Operating Income Net Other-1.4 M-1.4 M
Interest Income7.7 M6.7 M
Net Interest Income800 K840 K
Change To Netincome1.4 M1.4 M
Net Income Per Share 5.60  5.88 
Income Quality 1.49  1.42 
Net Income Per E B T 0.80  0.53 

Innospec Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Innospec. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Innospec position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Innospec's important profitability drivers and their relationship over time.

Use Innospec in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Innospec position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Innospec will appreciate offsetting losses from the drop in the long position's value.

Innospec Pair Trading

Innospec Pair Trading Analysis

The ability to find closely correlated positions to Innospec could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Innospec when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Innospec - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Innospec to buy it.
The correlation of Innospec is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Innospec moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Innospec moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Innospec can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Innospec position

In addition to having Innospec in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Industrials ETFs Thematic Idea Now

Industrials ETFs
Industrials ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Industrials ETFs theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Industrials ETFs Theme or any other thematic opportunities.
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Additional Tools for Innospec Stock Analysis

When running Innospec's price analysis, check to measure Innospec's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Innospec is operating at the current time. Most of Innospec's value examination focuses on studying past and present price action to predict the probability of Innospec's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Innospec's price. Additionally, you may evaluate how the addition of Innospec to your portfolios can decrease your overall portfolio volatility.