Ingevity (NGVT)
NYSE:NGVT
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Ingevity
(NYSE:NGVT)
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Rating:60Neutral
Price Target:
$80.00
▲(24.69% Upside)
Action:ReiteratedDate:04/16/26
The score is held back primarily by weakened financial performance (sustained losses and a highly pressured balance sheet despite improved cash flow). This is partially offset by strong technical momentum and a generally positive earnings-call outlook centered on adjusted profitability, free cash flow, deleveraging, and capital returns, while valuation support is limited due to the negative P/E.
Positive Factors
Strong Free Cash Flow
Durable and improving free cash flow provides the company with internal funding for deleveraging, buybacks and modest capex without relying on external capital. Sustained FCF supports financial flexibility, enables continued reduction of net leverage and funds strategic reinvestment over multiple quarters.
Negative Factors
Sustained Revenue Decline
Revenue has fallen for two consecutive years, reducing scale and placing more pressure on fixed costs. Persistent top-line weakness limits the durability of margin gains and free cash flow improvements, making profitable, sustained recovery contingent on renewed demand or market share gains in core end markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Durable and improving free cash flow provides the company with internal funding for deleveraging, buybacks and modest capex without relying on external capital. Sustained FCF supports financial flexibility, enables continued reduction of net leverage and funds strategic reinvestment over multiple quarters.
Read all positive factors
Ingevity (NGVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.61B
Dividend YieldN/A
Average Volume (3M)340.36K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-13.39%
EPS Growth88.25%
CountryUS
Employees1,600
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.63
Shares Outstanding35,222,538
10 Day Avg. Volume483,642
30 Day Avg. Volume340,362
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)72.13
Price to Sales (P/S)1.83
P/FCF Ratio7.83
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue3.06
Enterprise Value/Gross Profit8.00
Enterprise Value/Ebitda181.90
Forecast
1Y Price Target
$65.00Price Target Upside1.31% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)4.9
Revenue Forecast (FY)$1.19B
Ingevity Business Overview & Revenue Model
Company Description
Ingevity Corporation manufactures and sells specialty chemicals and activated carbon materials in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company operates through two segments, Performance Materials...
How the Company Makes Money
Ingevity makes money by selling specialty chemical products through its two operating segments. In Performance Materials, revenue is generated from the sale of activated carbon products and related technologies used to capture or remove contaminan...
Ingevity Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial turnaround on a non-GAAP basis: strong margin expansion, double-digit adjusted EBITDA growth, record free cash flow, significant deleveraging and resumed share repurchases. These positives are partially offset by an 8% decline in consolidated sales, a GAAP net loss driven by large noncash impairments totaling $337 million, continued APT and Road Markings headwinds (sales declines and price pressure), and increased seasonality after the Industrial Specialties divestiture. Management has provided a constructive 2026 outlook that conservatively assumes modest growth in margins and continued capital returns while excluding a one-time litigation payment.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Total company adjusted EBITDA increased ~10% year-over-year to $398 million, with adjusted EBITDA margin expanding 500 basis points to 30.8%.
Negative Updates
Revenue Decline
Total company full year 2025 sales of $1.3 billion declined 8% versus 2024; Performance Chemicals sales declined by $86 million primarily due to Industrial Specialties repositioning and portfolio changes.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Total company adjusted EBITDA increased ~10% year-over-year to $398 million, with adjusted EBITDA margin expanding 500 basis points to 30.8%.
Read all positive updates
Company Guidance
The 2026 guidance calls for adjusted EPS of $4.08–$5.20, sales of $1.1–$1.2 billion and adjusted EBITDA of $380–$400 million (implying adjusted EBITDA margins in the low‑30s to mid‑30s), with capex of $40–$60 million and free cash flow of $225–$250 million (does not include an approximately $95 million pretax BASF litigation payment expected in Q2). The outlook includes a full year of APT and Road Markings (Industrial Specialties is excluded) and assumes Performance Materials sales will grow low single digits with margins consistent with 2025 (~54%), Performance Chemicals (including Road Markings) will grow mid single digits with mid‑teens EBITDA margins (Pavement Technologies longer‑term target ~18%), and APT will be flat to low single‑digit growth with margins around 20%. Management plans to use FCF to continue share repurchases toward a $300 million buyback program through 2027 (nearly $20 million repurchased in Q1) and expects to reach and maintain net leverage of 2.0–2.5x in 2026.Ingevity Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
14
Very Negative
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.17B | 1.41B | 1.69B | 1.67B | 1.39B |
| Gross Profit | 461.50M | 454.70M | 471.90M | 570.10M | 512.80M |
| EBITDA | 37.40M | -329.50M | 206.00M | 440.20M | 324.40M |
| Net Income | -167.10M | -430.30M | -5.40M | 211.60M | 118.10M |
Balance Sheet | |||||
| Total Assets | 1.65B | 2.02B | 2.62B | 2.74B | 2.47B |
| Cash, Cash Equivalents and Short-Term Investments | 78.10M | 68.00M | 95.90M | 76.70M | 275.40M |
| Total Debt | 1.24B | 1.45B | 1.53B | 1.53B | 1.32B |
| Total Liabilities | 1.62B | 1.83B | 1.99B | 2.04B | 1.80B |
| Stockholders Equity | 29.70M | 195.20M | 631.40M | 698.30M | 673.80M |
Cash Flow | |||||
| Free Cash Flow | 273.50M | 51.00M | 95.30M | 170.90M | 189.50M |
| Operating Cash Flow | 331.20M | 128.60M | 205.10M | 313.40M | 293.30M |
| Investing Cash Flow | -57.50M | -79.50M | -77.30M | -551.90M | -138.60M |
| Financing Cash Flow | -252.20M | -70.20M | -99.90M | 48.10M | -133.10M |
Ingevity Technical Analysis
Positive
64.16
Price Trends
70.61
Positive
65.17
Positive
58.76
Positive
Market Momentum
1.86
Negative
58.83
Neutral
84.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGVT, the sentiment is Positive. The current price of 64.16 is below the 20-day moving average (MA) of 71.01, below the 50-day MA of 70.61, and above the 200-day MA of 58.76, indicating a bullish trend. The MACD of 1.86 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 84.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NGVT.
Ingevity Risk Analysis
Ingevity disclosed 24 risk factors in its most recent earnings report. Ingevity reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ingevity Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.86B | 16.33 | 9.01% | 2.19% | -4.49% | -100.80% | |
63 Neutral | $2.21B | -104.01 | -1.11% | 0.74% | -2.53% | -100.23% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $1.14B | 23.10 | 3.80% | 3.33% | 5.35% | -1.43% | |
60 Neutral | $2.61B | -12.82 | -127.78% | ― | -13.39% | 88.25% | |
59 Neutral | $2.55B | -56.41 | -33.65% | 2.79% | -13.67% | -608.89% | |
56 Neutral | $2.25B | -964.31 | -0.18% | 1.37% | 0.08% | -107.33% |
* Basic Materials Sector Average
NGVT
Ingevity
74.21
43.14
138.85%
ASH
Ashland
55.67
7.59
15.79%
IOSP
Innospec
74.66
-8.99
-10.75%
MTX
Minerals Technologies
71.32
15.49
27.75%
KWR
Quaker Chemical
129.90
30.11
30.18%
SCL
Stepan Company
50.21
4.68
10.28%
Ingevity Corporate Events
Business Operations and StrategyM&A Transactions
Ingevity Divests Ozark Materials Road Markings Business
Positive
Apr 15, 2026
On April 15, 2026, Ingevity announced it had signed and closed an all-cash deal to sell its Ozark Materials road markings business to PPG Industries for about $65 million, subject to customary adjustments. The move sharpens Ingevity’s portfo...
Business Operations and StrategyPrivate Placements and Financing
Ingevity Refinances and Extends Revolving Credit Facility
Positive
Mar 30, 2026
On March 26, 2026, Ingevity Corporation and its affiliates entered into a second amended and restated credit agreement with a bank syndicate led by JPMorgan Chase, extending the maturity of the company’s revolving credit facility to five yea...
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
Ingevity Updates Segment Reporting and Reports 2025 Results
Negative
Feb 25, 2026
Ingevity said on Feb. 25, 2026, that it will change how it reports segment results beginning with its 2025 Form 10-K by removing corporate and other administrative costs from segment operating results to improve transparency. These costs, includin...
Business Operations and StrategyExecutive/Board Changes
Ingevity Announces Board Transitions and Governance Streamlining
Positive
Feb 23, 2026
Ingevity Corporation announced on Feb. 23, 2026, that founding directors Daniel F. Sansone and Jean S. Blackwell will conclude their board service at the 2026 Annual Meeting of Stockholders, with Sansone retiring under the company’s age poli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.