It's been a while since I've written on Innospec (IOSP), a high-quality small specialty chemical company that I previously thought looked a little too pricey when specialty chemical companies were still popular. COVID-19 came along, though, and delivered some significant blows to the business, as oil and fuel demand plunged across the world.
While I do have some concerns about the pace of a recovery in the oilfield business, I believe Innospec is in solid shape otherwise. This could be a good time for the company to be opportunistic with M&A, and I like the long-term opportunities across the business. If Innospec can deliver long-term FCF growth in mid-single-digits, I believe these shares are priced for a double-digit annualized return today.
Read the full article here:
Body-Blows Across The Business Bring Innospec Back To An Interesting Valuation
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