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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-638.7%
Sector: 3.3%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Ingevity Corp (NGVT) receives a "Hold" rating with a composite score of 52.5/100, ranked #137 out of 4446 stocks. Key factor scores: Quality 50/100, Value 68/100, Momentum 66/100. This is quantitative analysis only — not investment advice.
Ingevity Corp (NGVT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Ingevity Corp Do?
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. Ingevity Corp (NGVT) is classified as a mid-cap stock in the Materials sector, specifically within the Chemicals industry. The company is led by CEO John C. Fortson and employs approximately 2,050 people, headquartered in NORTH CHARLESTON, South Carolina. With a market capitalization of $2.5B, NGVT is one of the notable companies in the Materials sector.
Ingevity Corp (NGVT) Stock Rating — Hold (April 2026)
As of April 2026, Ingevity Corp receives a Hold rating with a composite score of 52.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NGVT ranks #137 out of 4,446 stocks in our coverage universe. Within the Materials sector, Ingevity Corp ranks #8 of 284 stocks, placing it in the top 10% of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NGVT Stock Price and 52-Week Range
Ingevity Corp (NGVT) currently trades at $75.25. The stock gained $0.27 (0.4%) in the most recent trading session. The 52-week high for NGVT is $77.46, which means the stock is currently trading -2.9% from its annual peak. The 52-week low is $28.49, putting the stock 164.1% above its annual trough. Recent trading volume was 180K shares, suggesting relatively thin trading activity.
Is NGVT Overvalued or Undervalued? — Valuation Analysis
Ingevity Corp (NGVT) carries a value factor score of 68/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 53.39x, compared to the Materials sector average of 26.50x — a premium of 101%. The price-to-book ratio stands at 87.05x, versus the sector average of 2.83x. The price-to-sales ratio is 1.90x, compared to 0.74x for the average Materials stock. On an enterprise value basis, NGVT trades at 45.76x EV/EBITDA, versus 6.01x for the sector.
Overall, NGVT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Ingevity Corp Profitability — ROE, Margins, and Quality Score
Ingevity Corp (NGVT) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is -638.7%, compared to the Materials sector average of 3.3%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -11.5% versus the sector average of 0.6%.
On a margin basis, Ingevity Corp reports gross margins of 38.1%, compared to 29.8% for the sector. The operating margin is 4.6% (sector: 6.0%). Net profit margin stands at -12.1%, versus 3.0% for the average Materials stock. Revenue growth is running at -14.7% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
NGVT Debt, Balance Sheet, and Financial Health
Ingevity Corp has a debt-to-equity ratio of 5459.0%, compared to the Materials sector average of 41.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.33x, suggesting adequate working capital coverage. Cash and equivalents stand at $83M.
NGVT has a beta of 1.64, meaning it is more volatile than the broader market — a $10,000 investment in NGVT would be expected to move 64.4% more than the S&P 500 on any given day. The stability factor score for Ingevity Corp is 51/100, reflecting average volatility within the normal range for its sector.
Ingevity Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, Ingevity Corp reported revenue of $1.36B and earnings per share (EPS) of $-4.61. Net income for the quarter was $-190M. Gross margin was 38.1%. Operating income came in at $57M.
In FY 2025, Ingevity Corp reported revenue of $1.17B and earnings per share (EPS) of $-4.61. Net income for the quarter was $-167M. Gross margin was 39.5%. Revenue grew -17.0% year-over-year compared to FY 2024. Operating income came in at $419M.
In Q3 2025, Ingevity Corp reported revenue of $333M and earnings per share (EPS) of $1.20. Net income for the quarter was $44M. Gross margin was 40.2%. Revenue grew -11.6% year-over-year compared to Q3 2024. Operating income came in at $62M.
In Q2 2025, Ingevity Corp reported revenue of $365M and earnings per share (EPS) of $-4.02. Net income for the quarter was $-147M. Gross margin was 37.8%. Revenue grew -6.5% year-over-year compared to Q2 2024. Operating income came in at $-143M.
Over the past 8 quarters, Ingevity Corp has demonstrated a growth trajectory, with revenue expanding from $391M to $1.36B. Investors analyzing NGVT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NGVT Dividend Yield and Income Analysis
Ingevity Corp (NGVT) does not currently pay a dividend. This is common among smaller companies in the Chemicals industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Materials dividend stocks may want to explore other Materials stocks or use the stock screener to filter by dividend yield.
NGVT Momentum and Technical Analysis Profile
Ingevity Corp (NGVT) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 20/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NGVT vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing NGVT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NGVT vs S&P 500 (SPY) comparison to assess how Ingevity Corp stacks up against the broader market across all factor dimensions.
NGVT Next Earnings Date
No upcoming earnings date has been announced for Ingevity Corp (NGVT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NGVT? — Investment Thesis Summary
Ingevity Corp presents a balanced picture with arguments on both sides. The value score of 68/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 66/100, suggesting the trend favors buyers.
In summary, Ingevity Corp (NGVT) earns a Hold rating with a composite score of 52.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NGVT stock.
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Institutional Research Dossier
Ingevity Corp (NGVT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Ingevity Corp (NGVT) receives a Hold rating, driven by a mixed financial performance and a valuation that doesn't offer a compelling margin of safety. While the company operates in niche markets with some pricing power, recent revenue declines and significant net losses raise concerns about its near-term profitability and ability to generate consistent returns. The current valuation, particularly the elevated P/E ratio compared to the sector, suggests limited upside potential despite the company's strategic positioning in specialty chemicals and activated carbon materials.
The key takeaway is that Ingevity's future performance hinges on its ability to effectively manage its cost structure, navigate cyclical downturns in its end markets, and successfully integrate and leverage its acquisitions. Investors should closely monitor the company's progress in restoring profitability and reducing its debt burden before considering a more optimistic outlook. The high beta also suggests that the stock is more volatile than the market, adding another layer of risk.
Business Strategy & Overview
Ingevity operates through two primary segments: Performance Materials and Performance Chemicals. The Performance Materials segment focuses on activated carbon products, primarily for automotive emission control systems. This segment benefits from regulatory tailwinds related to emission standards, but is also subject to cyclical demand from the automotive industry. The Performance Chemicals segment produces specialty chemicals derived from crude tall oil and lignin, serving diverse applications such as pavement technologies, industrial specialties, and engineered polymers. This diversification helps mitigate some industry-specific risks, but also requires Ingevity to maintain expertise across a wide range of markets.
The company's strategic positioning involves developing and commercializing specialty products that address specific customer needs. This approach allows Ingevity to command premium pricing and build strong relationships with its customers. However, it also necessitates ongoing investment in research and development to maintain a competitive edge. Ingevity's focus on sustainability and environmentally friendly products aligns with growing consumer and regulatory demand, providing a potential growth driver in the long term.
Ingevity's growth strategy includes both organic initiatives and strategic acquisitions. The company has historically expanded its product portfolio and geographic reach through acquisitions, which can provide access to new technologies and markets. However, integrating acquired businesses can be challenging and may require significant investment. The company's ability to successfully execute its acquisition strategy will be crucial for driving future growth and profitability.
The industry context for Ingevity is characterized by increasing demand for specialty chemicals and activated carbon materials, driven by factors such as stricter environmental regulations, growing infrastructure spending, and rising demand for consumer goods. However, the industry is also subject to cyclical downturns and fluctuations in raw material prices, which can impact Ingevity's profitability. The company's ability to effectively manage these challenges will be critical for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-14.7%
Sector: 1.8%
-941% VS SCTR
Economic Moat Analysis
Ingevity's economic moat is likely narrow. While the company possesses some competitive advantages, they are not strong enough to warrant a wide moat rating. The Performance Materials segment benefits from intangible assets in the form of specialized knowledge and proprietary technology related to activated carbon production. This allows Ingevity to differentiate its products and command premium pricing in certain applications. However, the activated carbon market is relatively fragmented, and competition from other players limits Ingevity's pricing power.
The Performance Chemicals segment benefits from switching costs in certain applications, particularly in pavement technologies. Customers who have adopted Ingevity's products may be reluctant to switch to alternative solutions due to the time and expense involved in qualifying new suppliers. However, these switching costs are not insurmountable, and customers may switch if they find a superior or more cost-effective alternative.
Ingevity's cost advantages are limited. While the company has made efforts to improve its operational efficiency, it does not appear to have a significant cost advantage over its competitors. The company's gross margin is higher than the sector average, but its operating margin is lower, suggesting that it may be facing higher operating expenses. Furthermore, fluctuations in raw material prices can impact Ingevity's cost structure and profitability.
The company does not appear to benefit from network effects or efficient scale. The activated carbon and specialty chemicals markets are not characterized by strong network effects, and Ingevity's scale is not significantly larger than its competitors. Therefore, the company's competitive advantages are primarily based on its specialized knowledge, proprietary technology, and switching costs in certain applications. These advantages are sufficient to warrant a narrow moat rating, but they are not strong enough to provide a wide moat.
Financial Health & Profitability
Ingevity's financial health presents a mixed picture. The company's revenue has declined significantly in the most recent TTM period, with a revenue growth rate of -14.7% compared to the sector average of 1.5%. This decline is concerning and suggests that Ingevity is facing challenges in its end markets. The company's net income has also deteriorated significantly, with a net loss of $167.10 million in the TTM period compared to a net loss of $5.40 million in FY2023. This decline in profitability is driven by a combination of lower revenue and higher operating expenses.
The company's gross margin is relatively strong at 38.1%, compared to the sector average of 30.2%. However, its operating margin is significantly lower than the sector average, at 4.6% compared to 6.0%. This suggests that Ingevity is facing challenges in controlling its operating expenses. The company's ROE is also significantly negative at -638.7%, compared to the sector average of 2.7%. This reflects the company's significant net losses and high level of debt.
Ingevity's balance sheet is highly leveraged, with a debt-to-equity ratio of 5,459.00 compared to the sector average of 40.00. This high level of debt increases the company's financial risk and limits its flexibility to invest in growth opportunities. The company's current ratio is 1.33, which indicates that it has sufficient liquidity to meet its short-term obligations. However, the high level of debt remains a concern.
The quarterly financial history reveals a volatile performance. While Q3 FY2025 showed positive net income and a strong operating margin, Q2 FY2025 experienced a significant net loss and a negative operating margin. This volatility highlights the challenges that Ingevity faces in managing its profitability and cash flow. The company's free cash flow is not available for the TTM period, which makes it difficult to assess its ability to generate cash from its operations. The significant net losses in recent periods raise concerns about the company's long-term financial sustainability.
Valuation Assessment
Ingevity's valuation is difficult to assess due to its recent net losses. The company's P/E ratio is 53.4x, which is significantly higher than the sector average of 26.1x. This suggests that the stock is overvalued relative to its earnings. However, the P/E ratio is distorted by the company's low earnings, and it may not be a reliable indicator of its true value.
The company's EV/EBITDA ratio is 1.3x, which is significantly lower than the sector average of 5.2x. This suggests that the stock is undervalued relative to its EBITDA. However, the EV/EBITDA ratio may be misleading due to the company's high level of debt. The company's enterprise value is inflated by its debt, which reduces the EV/EBITDA ratio.
The company's free cash flow is not available for the TTM period, which makes it difficult to assess its free cash flow yield. The free cash flow yield is a key valuation metric that measures the cash flow generated by a company relative to its market capitalization. Without this metric, it is difficult to determine whether the stock is trading at a fair price.
Overall, Ingevity's valuation appears to be fair to slightly overvalued. The high P/E ratio suggests that the stock is overvalued, but the low EV/EBITDA ratio suggests that it is undervalued. The lack of free cash flow data makes it difficult to arrive at a definitive conclusion. Investors should carefully consider the company's financial performance and growth prospects before investing in the stock. The Hold rating reflects the uncertainty surrounding the company's valuation and its ability to restore profitability.
Risk & Uncertainty
Ingevity faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is the cyclical nature of its end markets. The demand for activated carbon and specialty chemicals is closely tied to the performance of the automotive, infrastructure, and industrial sectors. A slowdown in these sectors could lead to lower revenue and profitability for Ingevity.
Another risk is the volatility of raw material prices. Ingevity's products are derived from crude tall oil and lignin, which are subject to price fluctuations. Increases in raw material prices could squeeze Ingevity's margins and reduce its profitability. The company's ability to pass on these price increases to its customers will be crucial for mitigating this risk.
Competition is also a significant risk for Ingevity. The activated carbon and specialty chemicals markets are relatively fragmented, and Ingevity faces competition from both large and small players. Increased competition could lead to lower prices and reduced market share for Ingevity. The company's ability to differentiate its products and maintain its competitive edge will be critical for its long-term success.
Ingevity's high level of debt also poses a significant risk. The company's debt-to-equity ratio is significantly higher than the sector average, which increases its financial risk. The company's ability to service its debt obligations will depend on its ability to generate sufficient cash flow. A decline in revenue or profitability could make it difficult for Ingevity to meet its debt obligations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWIngevity's strategic focus on specialty chemicals and activated carbon positions it to benefit from long-term growth trends in environmental regulations and infrastructure spending.
BULL VIEWThe company's strong gross margins and focus on innovation suggest that it can maintain its competitive edge and generate attractive returns in the long run.
BULL VIEWIngevity's management team has a proven track record of successfully integrating acquisitions and driving operational improvements, which should support future growth and profitability.
The Bear Case
BEAR VIEWIngevity's recent revenue declines and net losses raise serious concerns about its ability to navigate cyclical downturns and generate consistent profitability.
BEAR VIEWThe company's high level of debt and negative ROE make it a risky investment, particularly in a rising interest rate environment.
BEAR VIEWIngevity's valuation is stretched, and the stock is likely to underperform if the company fails to meet its growth expectations or if its end markets weaken.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NGVT and 4,400+ other equities.
Ingevity Corp exhibits a 974% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-11.5%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
38.1%
Sector: 29.8%
Operating Margin
Core business profitability
4.6%
Sector: 6.0%
Net Margin
Bottom-line profitability
-12.1%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
