Ingevity (NGVT) AI Stock Analysis

• Market Cap: $2.14B
• Dividend Yield: N/A
• Average Volume (3M): 340.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -13.39%
• EPS Growth: 88.25%
• Country: US
• Employees: 1,600
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.52
• Shares Outstanding: 35,964,030
• 10 Day Avg. Volume: 483,642
• 30 Day Avg. Volume: 340,362
• PEG Ratio: >-0.01
• Price to Book (P/B): 7.58
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 29.02
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: 22.80
• 1Y Price Target: $67.00
• Price Target Upside: 19.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $56.00 ▼(-0.32% Downside)

Ingevity's overall stock score reflects significant financial challenges, with declining revenue and high leverage being major concerns. However, positive technical indicators and strategic initiatives, such as divestitures and debt reduction, provide some optimism. The company's valuation remains unattractive due to negative earnings, but recent corporate actions and leadership changes could support future growth.

Positive Factors

Strategic Divestiture

The divestiture allows Ingevity to focus on core segments with higher margins, improving operational efficiency and financial health.

Leadership Changes

Leadership changes, including a new CFO, aim to support strategic growth and enhance financial management, aligning with long-term goals.

Carbon Nanotube Technology

The agreement enhances Ingevity's position in the EV battery market, supporting growth in sustainable technologies and expanding market reach.

Negative Factors

Declining Revenue

Continued revenue decline indicates challenges in market demand and competitive positioning, impacting long-term financial performance.

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term stability.

Profitability Challenges

Negative profit margins highlight operational inefficiencies and cost management issues, threatening sustainable profitability and growth.

Ingevity Business Overview & Revenue Model

Company Description

Ingevity Corporation (NGVT) is a global company that specializes in the production of high-performance specialty chemicals and engineered materials. Operating primarily in two segments, Performance Materials and Performance Chemicals, Ingevity develops sustainable solutions that enhance the performance of its customers' products across various industries, including automotive, construction, and consumer goods. The company is known for its innovative activated carbon products, adhesives, and oilfield technologies, which are designed to improve efficiency and reduce environmental impact.

How the Company Makes Money

Ingevity generates revenue through a diversified model that includes the sale of its specialty chemicals and engineered materials. The Performance Materials segment, which includes activated carbon and other materials, contributes significantly to revenue by serving industries such as automotive and air quality management. The Performance Chemicals segment focuses on products like adhesives and oilfield chemicals, catering to construction and energy sectors. Key revenue streams include direct sales to manufacturers and industrial partners, as well as long-term contracts with major clients that ensure stable cash flow. Additionally, Ingevity's partnerships with companies in various sectors enhance its market reach and innovation, contributing to its overall financial performance.

Ingevity Financial Statement Overview

Summary

Ingevity faces significant financial challenges with declining revenue and profitability issues. High leverage poses financial risks, but strong free cash flow growth offers some relief. The company needs to address operational inefficiencies and improve its capital structure to enhance financial stability.

Income Statement

Ingevity's income statement shows declining revenue with a negative growth rate of -3.31% TTM. The company has a negative net profit margin of -16.35% TTM, indicating significant profitability challenges. Gross profit margin is moderate at 36.47% TTM, but EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 11.02 TTM, indicating potential financial risk. The return on equity is negative, suggesting poor returns for shareholders. The equity ratio is low, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 59.42% TTM, which is a positive indicator. However, the operating cash flow to net income ratio is 0.55, suggesting that cash generation is not fully supporting net income. The free cash flow to net income ratio is 0.70, indicating some level of cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.41B	1.69B	1.67B	1.39B	1.22B
Gross Profit	487.10M	454.70M	471.90M	570.10M	512.80M	465.50M
EBITDA	141.10M	-329.50M	206.00M	440.20M	324.40M	382.40M
Net Income	-65.90M	-430.30M	-5.40M	211.60M	118.10M	181.40M
Balance Sheet
Total Assets	1.83B	2.02B	2.62B	2.74B	2.47B	2.33B
Cash, Cash Equivalents and Short-Term Investments	83.40M	68.00M	95.90M	76.70M	275.40M	257.70M
Total Debt	1.29B	1.45B	1.53B	1.53B	1.32B	1.34B
Total Liabilities	1.70B	1.83B	1.99B	2.04B	1.80B	1.69B
Stockholders Equity	138.10M	195.20M	631.40M	698.30M	673.80M	642.10M
Cash Flow
Free Cash Flow	239.60M	51.00M	95.30M	170.90M	189.50M	246.50M
Operating Cash Flow	298.60M	128.60M	205.10M	313.40M	293.30M	352.40M
Investing Cash Flow	-70.40M	-79.50M	-77.30M	-551.90M	-138.60M	-110.60M
Financing Cash Flow	-266.40M	-70.20M	-99.90M	48.10M	-133.10M	-50.20M

Ingevity Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 56.18 is above the 20-day moving average (MA) of 55.81, above the 50-day MA of 53.73, and above the 200-day MA of 47.70, indicating a bullish trend. The MACD of 2.02 indicates Negative momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NGVT.

Ingevity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCL	66 Neutral	$1.05B	23.56	3.67%	3.33%	5.35%	-1.43%
MTX	64 Neutral	$1.90B	-2,294.36	-0.09%	0.74%	-2.53%	-100.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASH	61 Neutral	$2.70B	-3.23	-34.45%	2.79%	-13.67%	-608.89%
NGVT	58 Neutral	$2.14B	-32.55	-38.91%	―	-13.39%	88.25%
KWR	58 Neutral	$2.49B	-281.94	-0.64%	1.37%	0.08%	-107.33%
IOSP	54 Neutral	$1.93B	-1,327.89	-0.09%	2.19%	-4.49%	-100.80%

Ingevity Corporate Events

Ingevity Completes Portfolio Review and Stock Repurchases

On December 8, 2025, Ingevity Corporation announced the completion of its portfolio review and the exploration of strategic alternatives for its Advanced Polymer Technologies segment and Performance Chemicals Road Markings business. The company aims to enhance its portfolio by potentially divesting these segments to focus on core businesses with superior margins and cash flow. Ingevity has also completed over $30 million in stock repurchases in the fourth quarter of 2025, reflecting its commitment to returning capital to shareholders. The strategic review is part of Ingevity’s efforts to build a more agile enterprise and maximize shareholder value, although it is uncertain if it will result in any transactions.

Ingevity Announces Leadership Changes Amid Strategic Review

On December 8, 2025, Ingevity Corporation announced significant leadership changes as part of its strategic portfolio review. Mary Dean Hall will transition from her role as CFO on May 1, 2026, with Phillip J. Platt appointed as her successor. Rich White, President of Performance Chemicals, will move to a special projects role before departing on May 1, 2026. Additionally, Reid Clontz has been appointed as Senior Vice President of Operations. These transitions are aimed at supporting Ingevity’s long-term growth and strategic priorities.

Ingevity Announces Asset Sale to Mainstream Pine

On September 3, 2025, Ingevity Corporation announced an Asset Purchase Agreement with Mainstream Pine Products, LLC to sell its industrial specialties product line and North Charleston crude tall oil refinery, marking a strategic shift for the company. This divestiture, expected to close by early 2026, will significantly impact Ingevity’s operations and financial results, as these assets are now classified as discontinued operations.

Ingevity Appoints Ruth Castillo as Senior VP

On October 23, 2025, Ingevity Corporation announced the appointment of Ruth Castillo as Senior Vice President and President of Performance Materials, effective November 10, 2025. Castillo, with over 25 years of experience in the chemicals and materials industries, will lead Ingevity’s activated carbon segment, focusing on innovation and strategic growth. Her leadership is expected to reinforce the segment’s market position in evaporative emissions control and expand into emerging applications, aligning with Ingevity’s goals for operational excellence and market-driven priorities.