Ingevity (NGVT) AI Stock Analysis

• Market Cap: $2.18B
• Dividend Yield: N/A
• Average Volume (3M): 319.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -14.45%
• EPS Growth: 49.92%
• Country: US
• Employees: 1,600
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 1.39
• Shares Outstanding: 36,466,286
• 10 Day Avg. Volume: 278,704
• 30 Day Avg. Volume: 319,941
• 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: 1.30
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: -52.20
• 1Y Price Target: $60.33
• Price Target Upside: -0.68% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: $61.00 ▲(0.43% Upside)

Ingevity's overall stock score reflects a mix of strong technical momentum and positive strategic moves, tempered by financial challenges and valuation concerns. The company's strategic repositioning and improved guidance provide optimism, but high leverage and negative profitability weigh on the score.

Positive Factors

Earnings

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

Performance

NGVT posted better-than-expected results, with every segment exceeding expectations, indicating strong performance.

Strategic Review

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

Negative Factors

Auto Production

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

Guidance

Management widened the full year guidance range due to trade war and incremental risks tied to tariffs on auto production.

International Trade

NGVT reduced its full-year 2025 EBITDA guidance range due to current international trade relations and lower global auto production growth.

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 faces financial challenges with declining revenues and profitability, as evidenced by negative margins and high leverage. Despite positive cash flow growth, the high debt levels and negative returns on equity indicate financial pressure.

Income Statement

Ingevity's income statement shows declining revenue with a negative revenue growth rate of -1.89% in the TTM period. The company is experiencing negative net profit margins, indicating a loss-making period. The EBIT margin is also negative, reflecting operational challenges. Despite a historical trend of positive margins, the recent downturn suggests significant financial pressure.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 11.02 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting poor profitability relative to equity. The equity ratio is low, suggesting limited equity financing relative to total assets, which could pose risks in volatile market conditions.

Cash Flow

The cash flow statement shows a positive free cash flow growth rate of 58.04% in the TTM period, which is a positive sign. However, the operating cash flow to net income ratio is below 1, indicating that cash flow generation is not fully covering net losses. The free cash flow to net income ratio is positive, suggesting some ability to generate cash despite net losses.

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	-54.40M	-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: 60.74
• 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 60.74 is above the 20-day moving average (MA) of 56.61, above the 50-day MA of 50.18, and above the 200-day MA of 44.14, indicating a bullish trend. The MACD of 2.93 indicates Negative momentum. The RSI at 75.84 is Negative, neither overbought nor oversold. The STOCH value of 94.39 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
SCL	67 Neutral	$1.13B	19.80	4.77%	3.08%	2.64%	66.43%
PRM	63 Neutral	$3.28B	52.66	7.06%	―	56.87%	―
IOSP	63 Neutral	$2.13B	113.69	1.55%	1.90%	-5.45%	-87.13%
Sector *	61 Neutral	$10.37B	6.45	-0.08%	2.84%	3.09%	-36.03%
NGVT	61 Neutral	$2.18B	―	-106.83%	―	-14.45%	49.92%
MTX	61 Neutral	$2.01B	1,412.11	0.13%	0.69%	-3.93%	-97.39%
CC	51 Neutral	$2.34B	59.33	-87.50%	4.15%	2.48%	-459.90%

Ingevity Corporate Events

Ingevity Sells Refinery to Mainstream Pine for $110M

On September 4, 2025, Ingevity Corporation announced an agreement to sell its North Charleston crude tall oil refinery and the majority of its Industrial Specialties product line to Mainstream Pine Products for $110 million in cash, with potential additional contingent payments. This transaction aims to reduce portfolio volatility, strengthen Ingevity’s margin and cash flow profile, and enhance strategic flexibility. The sale is expected to close by early 2026 and will not impact Ingevity’s Road Technologies product line. The agreement includes various operational and supply arrangements between Ingevity and Mainstream, ensuring continuity and mutual benefits for both parties.

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.