Ingevity (NGVT)
NYSE:NGVT
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Ingevity
(NYSE:NGVT)
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Rating:61Neutral
Price Target:
$72.00
▲(12.22% Upside)
Action:Reiterated
Date:05/09/26
NGVT scores as a moderate-risk opportunity: supportive cash generation and reaffirmed forward guidance/buybacks are positives, and technicals show a steady uptrend. The score is held back primarily by elevated balance-sheet leverage on a thin equity base and still-weak profitability, with near-term cash headwinds from litigation payments and working-capital swings.
Positive Factors
Cash Generation
Consistent TTM operating cash flow and material free cash flow provide durable internal funding to cover capex, support buybacks and service debt. Reliable cash generation gives management flexibility to fund operations, invest in core businesses and pursue deleveraging over months.
Negative Factors
Elevated Leverage
Extremely high leverage on a thin equity base materially restricts financial flexibility. Debt burden and covenant risk increase refinancing and interest-rate exposure, making the company vulnerable to operational setbacks and limiting capacity for strategic investments or large acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistent TTM operating cash flow and material free cash flow provide durable internal funding to cover capex, support buybacks and service debt. Reliable cash generation gives management flexibility to fund operations, invest in core businesses and pursue deleveraging over months.
Read all positive factors
Ingevity (NGVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.36B
Dividend YieldN/A
Average Volume (3M)340.36K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth-10.27%
EPS Growth63.55%
CountryUS
Employees1,600
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-3.50
Shares Outstanding34,771,690
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 Cap1.49
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit7.37
Enterprise Value/Ebitda87.69
Forecast
1Y Price Target
$80.00Price Target Upside24.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.93
Revenue Forecast (FY)$1.10B
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational performance and strategic progress: revenue growth, strong Performance Materials results, disciplined capital allocation with accelerated share repurchases, and continued portfolio simplification. However, the quarter also featured notable headwinds — negative Q1 free cash flow due to inventory builds, GAAP special charges and sizable upcoming litigation payments, a weak Road Markings/pavement performance, and margin pressure in APT. On balance the operational wins, reaffirmed guidance, and active capital deployment outweighed the near-term cash and segment-specific challenges.Positive Updates
Disciplined Capital Allocation and Accelerated Buybacks
Company repurchased approximately $52 million of shares (~775,000 shares) in Q1 and had ~ $246 million remaining authorization at quarter end. Management reiterated a plan to complete $300 million of share repurchases through 2027 and has already repurchased nearly $15 million in Q2.
Negative Updates
GAAP Special Charges and Significant Upcoming Litigation Payments
GAAP net income included approximately $23 million of pretax special charges in the quarter (about $16 million related to a final BASF litigation settlement). Management disclosed approximately $113 million in pretax litigation-related payments to BASF expected in Q2 that are excluded from the FCF projection.
Read all updates
Q1-2026 Updates
Positive
Negative
Disciplined Capital Allocation and Accelerated Buybacks
Company repurchased approximately $52 million of shares (~775,000 shares) in Q1 and had ~ $246 million remaining authorization at quarter end. Management reiterated a plan to complete $300 million of share repurchases through 2027 and has already repurchased nearly $15 million in Q2.
Read all positive updates
Company Guidance
Ingevity reaffirmed its 2026 guidance, calling for adjusted EPS of $4.70–$5.20, sales of $1.05–$1.15 billion, adjusted EBITDA of $370–$395 million and free cash flow of $215–$245 million (which excludes roughly $113 million of pretax BASF litigation payments expected in Q2); the outlook excludes Road Markings after its April 15 sale and is expected to lift Performance Chemicals margin to the high teens while Performance Materials full‑year EBITDA margins are expected around the mid‑50s. Management reiterated a target net leverage of 2.0–2.5x in 2026, committed to $300 million of share repurchases through 2027 (having repurchased ~$52 million—~775,000 shares—in Q1, ~ $15 million already in Q2, and with ~ $246 million remaining authorization at quarter end), expects to capture ~$15 million of run‑rate indirect cost savings from the Industrial Specialties divestiture by year‑end, and is working to complete an APT sale before the end of the year.Ingevity Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
12
Very Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.17B | 1.41B | 1.69B | 1.67B | 1.39B |
| Gross Profit | 476.00M | 461.50M | 454.70M | 471.90M | 570.10M | 512.80M |
| EBITDA | 40.00M | 37.40M | -329.50M | 206.00M | 440.20M | 324.40M |
| Net Income | -127.80M | -167.10M | -430.30M | -5.40M | 211.60M | 118.10M |
Balance Sheet | ||||||
| Total Assets | 1.65B | 1.65B | 2.02B | 2.62B | 2.74B | 2.47B |
| Cash, Cash Equivalents and Short-Term Investments | 95.40M | 78.10M | 68.00M | 95.90M | 76.70M | 275.40M |
| Total Debt | 1.24B | 1.24B | 1.45B | 1.53B | 1.53B | 1.32B |
| Total Liabilities | 1.61B | 1.62B | 1.83B | 1.99B | 2.04B | 1.80B |
| Stockholders Equity | 38.90M | 29.70M | 195.20M | 631.40M | 698.30M | 673.80M |
Cash Flow | ||||||
| Free Cash Flow | 245.80M | 273.50M | 51.00M | 95.30M | 170.90M | 189.50M |
| Operating Cash Flow | 303.80M | 331.20M | 128.60M | 205.10M | 313.40M | 293.30M |
| Investing Cash Flow | 60.30M | -57.50M | -79.50M | -77.30M | -551.90M | -138.60M |
| Financing Cash Flow | -303.00M | -252.20M | -70.20M | -99.90M | 48.10M | -133.10M |
Ingevity Technical Analysis
Negative
64.16
Price Trends
71.87
Negative
70.24
Negative
62.75
Positive
Market Momentum
-1.60
Positive
42.50
Neutral
64.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGVT, the sentiment is Negative. The current price of 64.16 is below the 20-day moving average (MA) of 70.70, below the 50-day MA of 71.87, and above the 200-day MA of 62.75, indicating a neutral trend. The MACD of -1.60 indicates Positive momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 64.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.04B | 17.99 | 8.54% | 2.19% | 0.25% | 325.27% | |
70 Outperform | $2.39B | 14.77 | 9.55% | 0.74% | 2.50% | ― | |
66 Neutral | $2.49B | 583.70 | 0.31% | 1.37% | 6.25% | -94.37% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.36B | -18.73 | -156.14% | ― | -10.27% | 63.55% | |
58 Neutral | $1.20B | -85.05 | -1.15% | 3.33% | 5.46% | -125.23% | |
55 Neutral | $2.65B | -3.76 | -37.54% | 2.79% | -7.23% | -594.66% |
* Basic Materials Sector Average
NGVT
Ingevity
67.82
27.10
66.55%
ASH
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57.90
10.60
22.41%
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Innospec
82.94
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-1.40%
MTX
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77.02
21.45
38.60%
KWR
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143.53
40.99
39.98%
SCL
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52.85
1.23
2.37%
Ingevity Corporate Events
Executive/Board ChangesShareholder Meetings
Ingevity Shareholders Back Directors and Expanded Incentive Plan
Positive
May 4, 2026
On April 29, 2026, Ingevity Corporation held its annual meeting of stockholders, where shareholders elected nine directors to one-year terms and approved, on an advisory basis, the compensation of the company’s named executive officers. Stoc...
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...
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.