Ingevity (NGVT)
NYSE:NGVT
Want to see NGVT full AI Analyst Report?
Top Page
Ingevity
(NYSE:NGVT)
Select Model
Select Model
Rating:63Neutral
Price Target:
$83.00
▲(29.36% Upside)
Action:ReiteratedDate:05/07/26
NGVT scores in the low-to-mid range primarily due to weakened profitability and elevated balance-sheet risk despite improved cash generation. Technicals are a notable positive with an uptrend across key moving averages, and valuation appears reasonable on P/E. The earnings call supports the score via reaffirmed 2026 guidance and capital returns, tempered by litigation cash outflows and segment-level softness.
Positive Factors
Free cash flow recovery
A material rebound in operating and free cash flow in 2025 strengthens Ingevity's ability to fund operations, invest selectively, pay down debt, and sustain capital returns. Durable cash generation provides a financial buffer while management executes portfolio reshaping and deleveraging targets.
Negative Factors
High leverage and equity erosion
A heavily leveraged balance sheet and materially reduced equity limit financial flexibility and raise refinancing, covenant, and shock-absorption risks. Elevated debt-to-equity reduces resilience to demand or margin shocks and makes durable deleveraging essential to restore long-term strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow recovery
A material rebound in operating and free cash flow in 2025 strengthens Ingevity's ability to fund operations, invest selectively, pay down debt, and sustain capital returns. Durable cash generation provides a financial buffer while management executes portfolio reshaping and deleveraging targets.
Read all positive factors
Ingevity (NGVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.74B
Dividend YieldN/A
Average Volume (3M)340.36K
Price to Earnings (P/E)10.5
Beta (1Y)1.46
Revenue Growth-12.00%
EPS Growth60.73%
CountryUS
Employees1,600
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-4.63
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 Cap1.36
Enterprise Value/Revenue3.00
Enterprise Value/Gross Profit7.86
Enterprise Value/Ebitda178.74
Forecast
1Y Price Target
$83.00Price Target Upside29.36% Upside
Rating ConsensusModerate Buy
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: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
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
70.75
Positive
65.70
Positive
59.06
Positive
Market Momentum
1.78
Negative
60.84
Neutral
65.15
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 64.16 is below the 20-day moving average (MA) of 71.91, below the 50-day MA of 70.75, and above the 200-day MA of 59.06, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 60.84 is Neutral, neither overbought nor oversold. The STOCH value of 65.15 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.93B | 10.00 | 9.01% | 2.19% | -3.65% | 227.47% | |
71 Outperform | $2.46B | 14.58 | 9.55% | 0.74% | 2.50% | ― | |
63 Neutral | $2.74B | 10.51 | -127.78% | ― | -12.00% | 60.73% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $2.46B | 27.35 | 0.31% | 1.37% | 6.25% | -94.37% | |
59 Neutral | $1.20B | -6.91 | -1.15% | 3.33% | 5.46% | -125.23% | |
52 Neutral | $2.50B | 39.79 | -37.54% | 2.79% | -7.23% | -594.66% |
* Basic Materials Sector Average
NGVT
Ingevity
77.87
37.58
93.27%
ASH
Ashland
54.59
6.08
12.54%
IOSP
Innospec
77.67
-13.74
-15.03%
MTX
Minerals Technologies
79.29
24.50
44.72%
KWR
Quaker Chemical
141.86
38.92
37.81%
SCL
Stepan Company
52.89
0.14
0.27%
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...
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.