Forensic Analysis · Materials / Mining & Chemicals · as of Sep 25, 2026
Innospec Inc. (IOSP)
A forensic read on Innospec Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
9.7
Distress distance
Clean
Earnings quality
4
Forensic signals
18.9
P / E (ttm)
8.8%
ROE
$2.4B
Market cap
1.32%
Dividend yield
-3.7%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Innospec Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 9.7, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+11.5%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +11.5% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by inventory up +9% against -1% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 2% of net operating assets, against an accruals ratio of 11.5%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
89d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 84 to 89 FY2024→FY2025 (against cost of goods sold; inventory +9% vs -1% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
9.3%
FY2025
Return on invested capital.Return on invested capital is 9.3% in the latest fiscal year, against 11.4% in FY2023, having run between 9.3% and 14.3% across FY2023–FY2025 with no direction held. After-tax operating profit was $129M in FY2023 and $109M in FY2025, with operating income at 8.3% of revenue in FY2023, 9.6% in FY2024 and 7.3% in FY2025. The capital base behind it barely moved across FY2023–FY2025 ($1.1B to $1.2B, +4%), so there has been little new capital for that return to be earned on.
-0.1%/yr
FY2023–FY2025
Share count.Diluted share count changed 0% over the last 2 years to FY2025 (-0.1%/yr). Roughly flat — buybacks ($24M) are about offsetting stock comp ($8M), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Latest Revenue$1.78B
Revenue Growth YoY-3.7%
Revenue CAGR (2yr)-4.5%
Net Margin6.6%
Free Cash Flow$88.0M
Return on Equity8.8%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Innospec Inc.'s actual 10-K/10-Q/8-K filings?