Ingevity (NGVT) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 282.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -14.45%
• EPS Growth: 49.92%
• Country: US
• Employees: 1,600
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Chemicals - Specialty
• EPS (TTM): 1.39
• Shares Outstanding: 36,466,286
• 10 Day Avg. Volume: 425,324
• 30 Day Avg. Volume: 282,852
• 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: 1.41
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: -26.64
• 1Y Price Target: $57.00
• Price Target Upside: 2.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $50.00 ▼(-9.67% Downside)

Ingevity's overall stock score reflects a mixed outlook. The company's financial performance is under pressure due to high leverage and declining profitability, which is a significant concern. However, the technical analysis suggests a positive market sentiment, and the recent earnings call provided a boost with improved guidance and strategic repositioning successes. The valuation remains a challenge with a negative P/E ratio, but the company's efforts to improve cash flow and leverage are promising.

Positive Factors

Activist Involvement

The presence of activist Vision One in NGVT provides downside protection and positively skews the risk/reward profile.

Earnings Growth

NGVT has reached a positive inflection point in its turnaround with earnings growth and a significant jump in free cash flow.

Emission Regulations

New emission regulations could act as a catalyst for NGVT, driving upside potential.

Strategic Review

The strategic review of NGVT's PC business could unlock value and drive upside, presenting a positive risk/reward scenario.

Negative Factors

Guidance and Expectations

NGVT lowered its full-year guidance on lower global auto production expectations.

Trade and Tariffs

There are still risks tied to potential auto-related tariffs that could impact NGVT's stock.

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 multiple key streams, primarily from the sale of its performance materials and chemicals. The Performance Chemicals segment contributes significantly by providing activated carbon and specialty additives used in air and water treatment, automotive, and industrial applications. The Performance Materials segment focuses on high-performance materials used in asphalt and adhesives, which are essential in construction and manufacturing industries. Additionally, Ingevity has established strategic partnerships with companies in automotive and construction sectors to develop tailored solutions, thus enhancing its market reach and driving sales. The company's commitment to innovation and sustainability also helps attract customers looking for environmentally friendly alternatives, further supporting its revenue growth.

Ingevity Financial Statement Overview

Summary

Ingevity is facing significant financial challenges, with declining revenues and high leverage. The positive free cash flow offers some resilience, but high debt levels and negative net income raise concerns about long-term stability. Strategic improvements are essential for future success.

Income Statement

Ingevity's income statement reveals significant challenges, with a decline in total revenue from $1.69 billion in 2023 to $1.35 billion TTM and a net loss of $353.8 million TTM. The gross profit margin stands at 34.06% TTM, indicating some cost efficiency. However, the net profit margin is deeply negative, reflecting ongoing profitability issues. Despite a decent EBIT margin of 21.01% TTM, the company's revenue growth has been inconsistent, showing a negative trend in the latest period.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 5.94 TTM, indicating significant leverage. The equity ratio is low at 11.41% TTM, suggesting potential balance sheet vulnerabilities. Return on equity is negative due to losses, highlighting profitability challenges. Overall, the company's financial structure is strained, with high leverage and low equity levels.

Cash Flow

Ingevity's cash flow statement offers a mixed picture. The operating cash flow to net income ratio is negative due to substantial net losses, but free cash flow is positive at $95.1 million TTM, indicating some cash generation ability. Free cash flow growth has been positive compared to the annual period of 2024, but the company's cash flow performance remains inconsistent.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.41B	1.69B	1.67B	1.39B	1.22B
Gross Profit	483.10M	454.70M	471.90M	541.00M	480.60M	465.50M
EBITDA	-106.60M	-329.50M	399.50M	456.30M	417.30M	397.80M
Net Income	-216.60M	-430.30M	-5.40M	211.60M	118.10M	181.40M
Balance Sheet
Total Assets	1.88B	2.02B	2.62B	2.74B	2.47B	2.33B
Cash, Cash Equivalents and Short-Term Investments	76.90M	68.00M	95.90M	76.70M	275.40M	257.70M
Total Debt	1.33B	1.45B	1.53B	1.53B	1.25B	1.34B
Total Liabilities	1.76B	1.83B	1.99B	2.04B	1.80B	1.69B
Stockholders Equity	120.70M	195.20M	631.40M	698.30M	673.80M	642.10M
Cash Flow
Free Cash Flow	150.30M	51.00M	95.30M	170.60M	189.20M	246.50M
Operating Cash Flow	215.40M	128.60M	205.10M	313.10M	293.00M	352.40M
Investing Cash Flow	-59.70M	-79.50M	-77.30M	-553.90M	-140.60M	-110.60M
Financing Cash Flow	-177.90M	-70.20M	-99.90M	48.10M	-133.10M	-50.20M

Ingevity Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 55.35 is above the 20-day moving average (MA) of 48.35, above the 50-day MA of 45.98, and above the 200-day MA of 43.19, indicating a bullish trend. The MACD of 2.77 indicates Negative momentum. The RSI at 71.28 is Negative, neither overbought nor oversold. The STOCH value of 91.58 is Negative, 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
PRM	71 Outperform	$2.72B	43.90	7.06%	―	56.87%	―
MTX	68 Neutral	$1.91B	1,337.67	0.13%	0.72%	-3.93%	-97.39%
SCL	65 Neutral	$1.12B	19.48	4.77%	3.14%	2.64%	66.43%
IOSP	61 Neutral	$2.06B	110.00	1.55%	1.96%	-5.45%	-87.13%
Sector *	61 Neutral	$10.03B	6.44	1.13%	3.02%	2.97%	-45.32%
NGVT	55 Neutral	$2.02B	―	-106.83%	―	-14.45%	49.92%
CC	51 Neutral	$2.19B	59.33	-87.50%	4.52%	2.48%	-459.90%

Ingevity Corporate Events

Ingevity Announces Departure of Key Executive

On July 1, 2025, Ingevity Corporation announced the departure of S. Edward Woodcock, Executive Vice President and President of the Performance Materials segment, after a 37-year tenure. Woodcock played a crucial role in the growth of Ingevity’s activated carbon business, particularly in automotive emissions capture, and positioned the segment for future growth in hybrid and electric vehicle battery markets. The company has initiated a search for his successor, with interim management by Andrew Fox and Jonathan MacIver. Despite this leadership change, Ingevity maintains its previously disclosed full-year guidance, indicating stability in its operations.

The most recent analyst rating on (NGVT) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Ingevity stock, see the NGVT Stock Forecast page.