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Ingevity
(NYSE:NGVT)
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Rating:59Neutral
Price Target:
$74.00
▲(1.01% Upside)
Action:Reiterated
Date:07/30/26
The score reflects a balance of improving near-term operating outlook (raised guidance, strong margins, and solid free cash flow) against meaningful financial risk from high leverage/very low equity and a weak valuation signal (negative P/E). Technically, the stock shows mixed trend positioning (below shorter-term averages but above the 200-day), supporting a neutral-to-moderate overall rating.
Positive Factors
Free Cash Flow Generation
Consistent operating and free cash generation (TTM operating cash flow ~$211M; FCF ~$155M) provides durable internal liquidity to fund capex, buybacks and deleveraging. Sustained FCF underpins financial flexibility even with cyclical earnings, supporting medium-term stability.
Negative Factors
High Leverage / Weak Equity Base
Elevated leverage (roughly $1.2B of debt versus ~$47M equity, ~32x debt/equity) creates meaningful refinancing and volatility risk. A very small equity base amplifies earnings swings and limits capital flexibility, making the company vulnerable to downside shocks despite improving operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistent operating and free cash generation (TTM operating cash flow ~$211M; FCF ~$155M) provides durable internal liquidity to fund capex, buybacks and deleveraging. Sustained FCF underpins financial flexibility even with cyclical earnings, supporting medium-term stability.
Read all positive factors
Ingevity (NGVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.51B
Dividend YieldN/A
Average Volume (3M)340.36K
Price to Earnings (P/E)47.5
Beta (1Y)1.44
Revenue Growth-12.42%
EPS GrowthN/A
CountryUS
Employees1,500
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.54
Shares Outstanding34,377,922
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$80.00Price Target Upside9.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.24
Revenue Forecast (FY)$1.11B
Ingevity Business Overview & Revenue Model
Company Description
Ingevity Corporation (NGVT) is a specialty chemicals company that develops and manufactures materials used in industrial and consumer applications. The company’s businesses include performance chemicals and advanced materials, with products primar...
How the Company Makes Money
Ingevity makes money primarily by selling specialty chemical products and materials to industrial customers under its operating segments. A key revenue stream is its Performance Chemicals business, which sells bio-based chemical products (often de...
Ingevity Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution and financial improvement across core businesses: robust margin expansion, higher adjusted EBITDA and EPS, improved free cash flow (excluding a litigation payment), reduced leverage, ongoing share repurchases, and raised full-year guidance. These positives were tempered by divestiture-driven reported sales declines, localized demand weakness (notably China and South America), elevated asphalt prices impacting pavement projects, planned maintenance outages and expected softer North American auto production in the back half, and some benefits that may be temporary (competitor disruptions). Overall, the company is executing its portfolio strategy and investing in high-potential organic growth areas (filtration, warm-mix asphalt, energy storage), positioning it for durable earnings power despite manageable near-term headwinds.Positive Updates
Revenue Performance (Ex-Divestiture)
Reported Q2 sales were $314 million; sales excluding the Road Markings divestiture increased over 5% year-over-year with growth across all three segments.
Negative Updates
Reported Sales Decline Due to Divestiture
Reported Q2 sales declined 5% year-over-year as reported due to the April 15 Road Markings divestiture (reported Pavement Technologies sales fell 22% because of the sale).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Performance (Ex-Divestiture)
Reported Q2 sales were $314 million; sales excluding the Road Markings divestiture increased over 5% year-over-year with growth across all three segments.
Read all positive updates
Company Guidance
The company raised full-year guidance, now expecting adjusted EBITDA of $380–$400 million and adjusted EPS of $5.00–$5.45, with free cash flow increased at the low end to $220–$245 million (the EBITDA midpoint implies ~5% growth versus prior year); this outlook assumes planned maintenance outages and weaker North American auto production in H2 and does not assume proceeds from a potential Advanced Polymer Technologies sale. Second-quarter metrics supporting the raise included sales of $314 million (reported down 5% due to the April 15 Road Markings divestiture but up >5% excluding that divestiture), adjusted EBITDA of $115 million (+14%), an adjusted EBITDA margin of 36.6% (expanded ~600 bps), and adjusted EPS of $1.74. Cash generation remained strong: Q2 free cash flow (ex‑litigation) was ~$89 million, free cash flow per share rose to $2.52, capex was ~$10 million, trailing 12‑month adjusted EBITDA was ~ $403 million with net leverage at 2.5x (at the high end of target), and the company repurchased $35 million of stock in the quarter (about $211 million of authorization remaining toward a $300 million commitment). Segment highlights noted in the guidance update included Performance Materials sales of $161 million and EBITDA of $86 million (53.6% margin, expected mid‑50s for the year), Pavement Technologies up 3% ex‑Road Markings with a 24.4% margin, and Advanced Polymer Technologies at $49 million sales and $11 million EBITDA (22.7% margin).Ingevity Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.16B | 1.17B | 1.41B | 1.69B | 1.67B | 1.39B |
| Gross Profit | 477.10M | 461.50M | 454.70M | 471.90M | 570.10M | 512.80M |
| EBITDA | 191.50M | 37.40M | -329.50M | 206.00M | 440.20M | 324.40M |
| Net Income | 54.00M | -167.10M | -430.30M | -5.40M | 211.60M | 118.10M |
Balance Sheet | ||||||
| Total Assets | 1.54B | 1.65B | 2.02B | 2.62B | 2.74B | 2.47B |
| Cash, Cash Equivalents and Short-Term Investments | 97.40M | 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 | 1.49B | 1.62B | 1.83B | 1.99B | 2.04B | 1.80B |
| Stockholders Equity | 46.90M | 29.70M | 195.20M | 631.40M | 698.30M | 673.80M |
Cash Flow | ||||||
| Free Cash Flow | 154.90M | 273.50M | 51.00M | 95.30M | 170.90M | 189.50M |
| Operating Cash Flow | 211.00M | 331.20M | 128.60M | 205.10M | 313.40M | 293.30M |
| Investing Cash Flow | 138.50M | -57.50M | -79.50M | -77.30M | -551.90M | -138.60M |
| Financing Cash Flow | -277.60M | -252.20M | -70.20M | -99.90M | 48.10M | -133.10M |
Ingevity Technical Analysis
Positive
73.26
Price Trends
71.83
Positive
71.73
Positive
66.35
Positive
Market Momentum
0.26
Positive
57.50
Neutral
72.69
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 73.26 is below the 20-day moving average (MA) of 73.48, above the 50-day MA of 71.83, and above the 200-day MA of 66.35, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 57.50 is Neutral, neither overbought nor oversold. The STOCH value of 72.69 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.12B | 18.69 | 8.68% | 2.11% | 0.25% | 325.27% | |
66 Neutral | $2.76B | 28.51 | 7.12% | 1.34% | 7.79% | ― | |
66 Neutral | $1.46B | -534.50 | -1.15% | 2.73% | 7.63% | -104.57% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $3.33B | 63.69 | 2.77% | 2.51% | -1.39% | ― | |
59 Neutral | $2.51B | 47.47 | 85.17% | ― | -12.42% | ― | |
56 Neutral | $2.36B | -34.97 | -4.04% | 0.62% | 4.06% | -3189.89% |
* Basic Materials Sector Average
NGVT
Ingevity
75.58
26.02
52.50%
ASH
Ashland
72.32
21.72
42.92%
IOSP
Innospec
86.70
6.94
8.71%
MTX
Minerals Technologies
75.21
17.75
30.90%
KWR
Quaker Chemical
173.26
49.04
39.48%
SCL
Stepan Company
64.03
14.89
30.31%
Ingevity Corporate Events
Executive/Board Changes
Ingevity Appoints Ryan Cotterman As Chief Accounting Officer
Positive
Jun 24, 2026
On June 22, 2026, Ingevity Corporation appointed 44-year-old Ryan Cotterman as vice president, chief accounting officer and principal accounting officer, bringing extensive public-company and audit experience from roles at Ralliant Corporation, Co...
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...
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.