Is INNOSPEC INC. (IOSP) Halal?

NASDAQ Basic Materials United States $1.8B
✓ HALAL
Confidence: 95/100
INNOSPEC INC. (IOSP) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 2.9% against the AAOIFI threshold of 30%, INNOSPEC INC. comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Specialty Chemicals), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 2.9%
/ 30%
16.4%
/ 30%
19.2%
/ 30%
1.54%
/ 5%
✓ HALAL
DJIM 2.9%
/ 33%
16.4%
/ 33%
19.2%
/ 33%
1.54%
/ 5%
✓ HALAL
MSCI 2.9%
/ 33%
16.0%
/ 33%
18.7%
/ 33%
1.54%
/ 5%
✓ HALAL
S&P 2.9%
/ 33%
16.4%
/ 33%
19.2%
/ 33%
1.54%
/ 5%
✓ HALAL
FTSE 2.9%
/ 33%
16.0%
/ 33%
18.7%
/ 50%
1.54%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
15.5
Forward: 11.5
EPS
$4.67
Dividend Yield
241.0%
Payout: 36.6%
P/B Ratio
1.3
EV/EBITDA
7.8
EV: $1.6B
Revenue
$1.8B
Growth: -2.4%
Beta
0.9
Average volatility
Current Ratio
2.8

Profitability

Gross Margin 27.7%
Operating Margin 10.3%
Net Margin 6.6%
Return on Equity (ROE) 9.1%
Return on Assets (ROA) 5.5%

Cash Flow & Balance Sheet

Operating Cash Flow$138M
Free Cash Flow$63M
Total Debt$53M
Debt-to-Equity4.0
Current Ratio2.8
Total Assets$1.8B

Price & Trading

Last Close$72.37
50-Day MA$77.81
200-Day MA$79.38
Avg Volume198K
Beta0.9
52-Week Range
$65.51
$96.38

About INNOSPEC INC. (IOSP)

CEO
Mr. Patrick S. Williams
Employees
2,450
Sector
Basic Materials
Industry
Specialty Chemicals
Country
United States
Exchange
NASDAQ
Market Cap
$1.8B
Currency
USD

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company operates through three segments: Performance Chemicals, Fuel Specialties, and Oilfield Services. It offers specialty chemical products used as additives in diesel, jet, marine, fuel oil, and other fuels used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications. It also provides technology-based solutions for customers' processes or products in personal care, home care, agrochemical, construction, mining, and other industrial markets. In addition, the company develops and markets chemical solutions for drilling, completion, production, drag reducing agents, and oil and gas applications. It serves large multinational companies, manufacturers of personal and home care products and global mining, agriculture and building products, and other industrial companies; national and multinational oil companies, fuel marketers and retailers, fuel terminals, marine lines, coating and plastics producers, and other heavy industrial end-users; and multinational public, independent exploration and production, and oilfield services companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.

Purification Calculator

As a halal stock with 1.54% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Basic Materials

Frequently Asked Questions

Is INNOSPEC INC. (IOSP) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), INNOSPEC INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is INNOSPEC INC.'s debt ratio?

INNOSPEC INC.'s debt ratio is 2.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.9%.

Does INNOSPEC INC. require dividend purification?

Yes, INNOSPEC INC. has an impermissible income ratio of 1.54%, which means 1.54% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are INNOSPEC INC.'s key financial metrics?

INNOSPEC INC. has a market capitalization of $1.8B, trailing P/E ratio of 15.5, and revenue of $1.8B. The company maintains a gross margin of 27.7% and a net margin of 6.6%. Return on equity stands at 9.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.