Ingevity (NGVT) AI Stock Analysis

• Market Cap: $2.37B
• Dividend Yield: N/A
• Average Volume (3M): 340.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• 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: 1.55
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 7.52
• Enterprise Value/Ebitda: 25.94
• 1Y Price Target: $68.67
• Price Target Upside: 2.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $72.00 ▲(7.06% Upside)

The score is held back primarily by weak profitability and high leverage in the financial statements, despite strong free cash flow growth. Technicals are supportive with an established uptrend and positive momentum, and recent guidance/events point to improving margins and deleveraging via divestitures and cash generation, but valuation remains constrained by negative earnings.

Positive Factors

Free Cash Flow Generation

Sustained, material free cash flow growth provides durable funding for debt reduction, share repurchases, and selective reinvestment. Strong FCF improves financial optionality even if earnings remain volatile, supporting execution of strategic portfolio moves and de-risking capital structure over months.

Margin Expansion Trajectory

Consecutive EBITDA margin expansion to best-in-class levels signals improving operating leverage and cost structure discipline. Higher sustainable margins increase cash conversion, cushion cyclical revenue swings, and underpin the company's ability to invest in high-return specialty segments over the medium term.

Portfolio Simplification via Divestiture

Selling lower-margin, volatile assets and concentrating on activated carbon and pavement technologies reduces earnings volatility and sharpens strategic focus. This structural repositioning should improve margin sustainability and cash flow quality by concentrating resources on higher-margin, specialty applications.

Negative Factors

High Leverage

Very elevated leverage constrains financial flexibility, increases refinancing and interest rate sensitivity, and magnifies downside risk if revenue or margins deteriorate. High debt levels limit capacity for M&A or cushioning against prolonged cyclical weakness without continued asset sales or outsized cash generation.

Declining Revenue and Negative Profitability

Persistent revenue declines and negative net margins indicate structural demand or competitiveness issues in parts of the portfolio. Until top-line trends stabilize, negative profitability undermines reinvestment capacity and makes margin gains and deleveraging efforts more vulnerable to cyclical setbacks.

Weakness in APT End Markets

Material, segment-level declines in Advanced Polymer Technologies reflect weak end-market demand and competitive pressures in China. Structural deterioration of this core segment prolongs recovery timeframes and reduces predictability of consolidated sales, complicating long-term capacity utilization and planning.

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 and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products primarily for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for use in various applications, including food, water, beverage, and chemical purification. The Performance Chemicals segment comprises of pavement technologies, industrial specialties, and engineered polymers. It manufactures products derived from crude tall oil and lignin extracted from the kraft pulping process, as well as caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide. This segment's products are used in various applications comprising warm mix paving, pavement preservation, pavement reconstruction and recycling, oil well service additives, oil production, and downstream applications; and adhesives, agrochemical dispersants, lubricants, printing inks, industrial intermediates and oilfield, coatings, resins, elastomers, bioplastics, and medical devices. Ingevity Corporation was founded in 1964 and is headquartered in North Charleston, South Carolina.

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

Financials are pressured by declining revenue (-3.31% TTM) and weak profitability (net margin -16.35% with negative EBIT/EBITDA margins). Balance sheet risk is elevated due to very high leverage (debt-to-equity 11.02 TTM). Offsetting this, free cash flow growth is strong (+59.42% TTM), providing some support despite imperfect cash conversion (operating cash flow to net income 0.55).

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: 67.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 67.25 is above the 20-day moving average (MA) of 65.79, above the 50-day MA of 59.74, and above the 200-day MA of 51.02, indicating a bullish trend. The MACD of 2.03 indicates Positive momentum. The RSI at 62.20 is Neutral, neither overbought nor oversold. The STOCH value of 44.23 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	$1.30B	29.15	3.67%	3.33%	5.35%	-1.43%
MTX	65 Neutral	$2.05B	―	-1.07%	0.74%	-2.53%	-100.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NGVT	59 Neutral	$2.37B	-36.78	-38.91%	―	-13.39%	88.25%
ASH	59 Neutral	$2.80B	-3.37	-34.45%	2.79%	-13.67%	-608.89%
KWR	58 Neutral	$2.67B	-308.62	-0.64%	1.37%	0.08%	-107.33%
IOSP	54 Neutral	$2.02B	-1,420.07	-0.09%	2.19%	-4.49%	-100.80%

Ingevity Corporate Events

Ingevity completes sale of CTO refinery and assets

On January 1, 2026, Ingevity amended its asset purchase agreement related to the sale of certain businesses by excluding non-lignin dispersant products sold for agricultural chemical applications from the asset package. On the same date, the buyer acquired substantially all assets and certain rights and liabilities tied to Ingevity’s industrial specialties product line—excluding specified businesses—and its North Charleston, South Carolina crude tall oil (CTO) refinery and related operations. On January 5, 2026, Ingevity announced it had completed the all-cash sale of its North Charleston CTO refinery assets and the majority of its Performance Chemicals Industrial Specialties product line to Mainstream Pine Products, LLC for $110 million at closing plus up to $19 million in contingent consideration, subject to post-closing adjustments. Management framed the divestiture as a pivotal move to simplify and streamline the portfolio, reduce earnings volatility, and strengthen margins and cash flow, while sharpening the company’s focus on higher-margin specialty applications in activated carbon and pavement technologies and retaining its Pavement Technologies business and other lignin-based dispersant products.

The most recent analyst rating on (NGVT) stock is a Hold with a $60.00 price target. To see the full list of analyst forecasts on Ingevity stock, see the NGVT Stock Forecast page.

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.

The most recent analyst rating on (NGVT) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on Ingevity stock, see the NGVT Stock Forecast page.

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.

The most recent analyst rating on (NGVT) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on Ingevity stock, see the NGVT Stock Forecast page.

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.

The most recent analyst rating on (NGVT) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Ingevity stock, see the NGVT Stock Forecast page.