For over a century Innophos and its predecessor companies have pioneered the processes by which complex phosphates are derived from organic phosphate rocks. They also hold a number of key patents governing the manufacture and use of phosphates. In addition they continue to develop new and innovative phosphate based products to address the specific applications and needs of their customers.
• Annual revenues $844 million (FY 2013)
• Total assets: $745 million (FY 2013)
• Nasdaq symbol: IPHS
• Employs approximately 1,400 people worldwide
• Formerly part of Rhodia, taken private by Bain Capital in 2004
• Innophos IPO date: November 2, 2006
• Corporate headquarters: Cranbury, New Jersey USA
• Chairman of the Board of Directors & CEO: Randolph Gress
Innophos Holdings, Inc. (IPHS), through its subsidiaries, produces performance-critical and nutritional specialty ingredients with applications in food, beverage, dietary supplements, pharmaceutical, oral care, and industrial end markets. It operates through Specialty Phosphates US & Canada, Specialty Phosphates Mexico, and GTSP & Other segments. The company’s specialty ingredients include specialty phosphate salts, specialty phosphoric acids, and other mineral and botanical based specialty ingredients that are used as flavor enhancers in beverages; electrolytes in sports drinks; texture modifiers in cheeses; leavening agents in baked goods; mineral and botanical sources for nutritional supplements; pharmaceutical excipients; and abrasives in toothpaste, as well as in industrial applications, such as asphalt modification and petrochemical catalysis. It also provides food and technical grade purified phosphoric acid (PPA) used in the production of fertilizer, and specialty phosphate salts and acids, as well as in beverage and water treatment applications; technical grade sodium tri polyphosphate (STPP), a specialty phosphate, which is used as an ingredient in cleaning products, such as industrial and institutional cleaners, automatic dishwashing detergents, and consumer laundry detergents, as well as in water treatment, clay processing, and copper ore processing activities; and detergent grade PPA that is primarily used in the production of STPP. In addition, the company offers granular triple super phosphate (GTSP), a fertilizer product line used for enhancing crop yields in various agricultural sectors. It serves primarily consumer goods manufacturers, distributors, and specialty chemical manufacturers in the United States, Mexico, Canada, and internationally. Innophos Holdings, Inc. was founded in 2004 and is headquartered in Cranbury, New Jersey. (Daily Chart)
Innophos was originally part of Rhodia Corporation but was taken private by the private equity firm Bain Capital. In 2006 the company was sold to the general public through an initial public offering (IPO). Since going public, Innophos has struggled with returns which have been strong but volatile, reduction of leverage in the balance sheet, growth in emerging markets, reduction in margin volatility, and increasing the dividend payouts to investors.
27 January 2015
1yr Target $67.00
1yr Cap Gain 11.15%
1yr Est Tot Return 14.33%
3yr DivGR 28.38%
5yr DivGR 16.35%
Market Cap $1.30 Bil
EPS (ttm) $3.04
Payout Ratio 51.75%
EPS next yr $3.71
Forward P/E 16.27
Sales $841.20 Mil
Income $67.60 Mil
Profit Margin 8.03%
Revenues, Earnings and Dividends
Below is a listing of the revenues, earnings, dividends and the payout ratios of the company since once again going public in 2006. Revenues have increased by 45% and dividends by 113% since going public through both internal growth as well as acquisitions.
Revenue Growth Rate
1 yr -2.12%
Earnings Growth Rate
1 yr -33.04%
Dividend Growth Rate
1 yr 27.19%
Innophos has created a lot of wealth for its shareholders who bought into the IPO at $12 and now sits at just above $60. They've also increased their dividend from $0.68 to $1.45, with additional estimates of $1.76 for 2014 and $2.20 for 2015. The company also has a share buy back program in place with the intent of buying back approximately 10% of the outstanding shares. These are all typical of the actions that conservative dividend growth investors look for in their investments.
With one year estimates of Innophos's earnings and dividends increasing at a very robust pace, I believe this may just be the time to start a position in this company and this industry. I intend to do just that in the near future as funds become available in my accounts.